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What Should This Business Sell For......

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  • #46
    Re: What Should This Business Sell For......

    Originally posted by AFM View Post
    By your comments you have already made up your mind so whats the point in asking us for advice buy it and learn the hard way as the majority of us have been their at the university of hard plumbing nocks.


    No, I have not made up my mind and everyone's advice here has been greatly appreciated. I am now looking at offering him a percentage for the calls coming in on his number plus a modest amount for his equipment.
    Last edited by AssTyme; 04-18-2010, 09:12 AM.


    • #47
      Re: What Should This Business Sell For......

      Originally posted by UnClogNH View Post
      If you slowly raise your rates and the other companies don't
      Your customers will ditch you in a second.
      Are there a big franchise companies in your area?
      If Not there is a reason.

      I guess if the customers left for someone else it would be out of spite as I would still be a little lower in the end. My county has a population of 150,000. Roto Rooter is the only big boy in my area.


      • #48
        Re: What Should This Business Sell For......

        You know these people, and if you just open up shop, you are going to be a competitor and be seen as a bad guy.

        They do have a customer base, and a good name, and that's not a bad way to start. The business has been billing too low, so there is more income avail there by bumping up pricing to reasonable levels. You might lose some customers as you bump up pricing, but you'll get them back over time when they find out everyone else is as much or more if you do good work.

        If you buy it, don't pay cash for it. Make them carry a loan for you secured by the business. That way they know the only way they get paid is by making sure you succeed. If you fail they just get it back and they don't want it anymore.

        Try to make an arrangement where the guy who's been running it for however long will work with you for 6 mo or a year; that way you'll get introduced by him to the customers, an dthey'll be more ok with the change. Most people don't deal with the company, they deal with the person. And it's offputting for them when the person changes. $50k is not much to work with to cover expenses, let alone feed you, let alone pay a guy to work with you, but you might work something out.
        This is my reminder to myself that no good will ever come from discussing politics or religion with anyone, ever.


        • #49
          Re: What Should This Business Sell For......

          Dont pay for someone elses name
          Use your own