Is my client base worth selling???

[hippy chick]

Hi everyone, I am emigrating in June to Canada and have been a nailtech here in Bristol UK for 5 years. I have a substancial client base and one of my clients suggested that I try to sell my client base.
Now, I realise that my clients invest in me, as they are all happy with the service that they get from me, but should it be worth anything???
All of my clients have asked me if I could find another nailtech to take over, which I feel that I should do, but I want to have my nails done by them first to make sure they are up to scratch as we all know there are some awful nailtechs out there!! no offence!!
What are your thoughts on this???

Cheers

 

[Urban Geek]

I have passed on 2 substantial client bases in the past. I didn't ask for any money. Also, you would need your clients permission before passing their details on. Even if you do a trade test and you think the nail technician is great, your clients have no obligation to go to that techncian.

If a shop or salon in a high street sell their goodwill, again you have no guarantee that the custom will continue.

I wouldn't buy goodwill. I would only pay for it if I wanted a real sought after shop in a great location but I would be paying for the location really rather than the goodwil, if you see what I mean.

You could always give it a go but I have reservations.

 

[VHunter]

I would personally never pay for a 'client base' so to speak.
There's no guarantee that they'd get on with the other tech; all sorts of issues could arise (conflict of personality, location, different hours offered, etc)

I only pay for TANGIBLE things and one just never knows which way a client will sway.

Also, as a consumer, I'd be right %^#$%^& ticked off if someone "sold" my name/address info to someone else to solicit me. I'm already more than fed up with spam and such......

hth's

 

[naturalnails]

I agree with the others, I dont think you could sell your clients.

What would be really great customer service though would be for you to check out some of the other technicians in the area and give a precis to your existing clients - not necessarily a recommendation but maybe some pointers so they can make their own "educated" choice for when you have gone.

 

[hippy-chick]

well I don't know, I would be tempted to do this.

I would seek permission from all of my clients though, I would send a letter out explaining that I am emigrating and would be passing on details to another therapist. I would have a ticky box at the bottom of the letter and ask clients that DIDN'T want their details passed on to send the slip back and they would have their name taken off the list.

I would then pass it on and charge for it.

 

[Urban Geek]

well I don't know, I would be tempted to do this.

I would seek permission from all of my clients though, I would send a letter out explaining that I am emigrating and would be passing on details to another therapist. I would have a ticky box at the bottom of the letter and ask clients that DIDN'T want their details passed on to send the slip back and they would have their name taken off the list.

I would then pass it on and charge for it.

Yes but you'll also have to find someone willing to pay. Good luck!

 

[lissa]

Ah you have made me chuckle ! selling your client base lol :lol: makes you sound like a pimp haha.. (i hope i havn't offended you ) hope it all goes well in canada were hoping to emigrate to oz in a few years !! good luck:lol:

 

[Mieke]

How can you sell that? You can,t MAKE your customers go to the person that bought it from you? What if they change their minds and go off to other places....

 

[hippy-chick]

well their would be no guarantees for anything. You are selling a list of potential clients, it would be up to the new therapist to entice them in and keep them.

Reprisals? Yes you would hope that the new therapist was a good professional after checking them out, but at the end of the day, you are walking away from it.

wouldnt know how much to charge though.

think salons charge a couple of thousand but think you would be lucky to get a couple of hundred.

 

[loubylou]

When i bought my salon i paid £6500 for the good will and only ever saw 3 of the previous owners clients (she had many more than that)
they still do come to me but i am going to have do an awful lot of treatments for those 3 to recoup my money hth
she didn't take them with her as she moved miles away

 

[Cec]

In Norway it's pretty normal to sell goodwill with the salon. Do you have a salon/location? The new nailtech do not have any guarantee that the clients will stay, but i's easier for her to get those as long as she will have the same location. I think it will be difficult for you if you don't have a salon...

C.

 

[Cathie!]

I wouldn't pay for leads again, which is what your clients would be to another tech, leads, although they're having there nails done already so do have a vested interest in finding another great tech...I tried it once and I got virtually nothing from it.

However, if you want to pass on my salon details to your clients, feel free to PM me, I'll be happy to trade test for you. :hug:

 

[sodabubble]

I also would not pay for a client list, I think you may struggle to find anyone that would

best of luck with the move xx

 

[hippy chick]

Thanks for these replys. I will say that most of my clients have ASKED me to find someone that is good enough to pass them onto as I previously said, there are MANY MANY nail techs that give out very poor work. So obviously I wouldn't be just giving these clients names to anyone! Also, lots of my clients scoured the nailtechs in Bristol before they found someone they were happy with, and I suppose that they shouldn't have to "waste" any more money looking for someone. I just think I have the knowledge of the nail industry that the clients don't have?!
Anyway, looking forward to my new venture in Canada, hopefully their summer will be dryer than our was last year!!!!.

Thanks Again...

Sonia

p.s. MIEKE----A Pimp???? What does that mean!!!!

 

[Cathie!]

Thanks for these replys. I will say that most of my clients have ASKED me to find someone that is good enough to pass them onto as I previously said, there are MANY MANY nail techs that give out very poor work. So obviously I wouldn't be just giving these clients names to anyone! Also, lots of my clients scoured the nailtechs in Bristol before they found someone they were happy with, and I suppose that they shouldn't have to "waste" any more money looking for someone. I just think I have the knowledge of the nail industry that the clients don't have?!
!!!!

You're so right Sonia, I live and work in Bristol too and am sure I have seen as much shoddy work as you have.

Good luck with your Canadian venture!

 

[geeg]

Send them to Cathie .. she is a really good technician ... no way would the clients be unhappy with her.

I think personally it is a kind of scam selling a client base because what others have said is so true ... what are you selling? Nothing. No guarantee whatever that the clients on your list will comply and go to the person who has bought it!! I'd never buy a client base from anyone. All the techs in your area have to do is WAIT until you leave and they can pitch for the custom for free.

I am not saying YOU have any intention of pulling a scam, but that is how I view this type of transaction.

 

[collin]

Whilst I can see and fully understand that the issue of "good will" is one that is somewhat difficult to comprehend but never the less if you check with your accountant this is something that is completly normal and reasonable when either buying or selling a buisness (wether it be here in the Uk or anywhere worldwide)

The good will element of an aquisition or sale is something that may look difficult to value however it is realitivley simple really and works on two principles..what you think its worth and what the buyer is willing to pay.

This elemet of a buisness sale is the bit that rewards you for all the hard work you have put into developing your buisness..so why miss out?

How do you value your good will

You/your accountants will look at many things from anual profit,location,is the buisness ready to boom or go bust,what would someone be willing to pay for it etc...the usual is to take the profit and multiply it by 3+ (this means that the buyer will know they have three years trading to recoupe their investment if the buisness continues as it has)

Together with your accountants you will quickly come to a figure which is fair..the Inland revenue also has guidelines which they deem as "tax allowable" again your accountant should have these answers.

Once you have set the good will value then its up to you and the buyer to finally agree a figure that suits you both.

So don't give your hard earned efforts away..you have built up the customer base and conciquential profits so make sure you get rewarded for that effort...especially if you are setting up a new life in a new country you will need all the help with finances to re establish yourself and your new buisness.

For the puroses of refrence..you do not legally need to seek and obtain the permission of your customers to sell or buy any buisness sometimes however it can be a good thing to keep them informed and reasured about the possible new owner..you have a duty to do this especially if you are asking for a "good will" payment...

So your off to Canada soon...can I come as this is somewhere I would love to live..hoping this helps and good luck with your new life :hug:

 

[collin]

When i bought my salon i paid £6500 for the good will and only ever saw 3 of the previous owners clients (she had many more than that)
they still do come to me but i am going to have do an awful lot of treatments for those 3 to recoup my money hth
she didn't take them with her as she moved miles away

Hi louse,
from what you have previously told me and these comments I do have the feeling that you have been taken advantage of and been misled by the seller.

From what you have told me the seller could well have taken your money and then refered her existing clients to the salon down the road who just so happens to be her relative??

Dependant on the contents of the contract you entered into you may(if it can indeed be proven that you have been misled)have means to take recourse with the seller and recoupe some of your investment back.

This can be a difficult route however may well be worth considering...

I have many years of experiance with aqusitions,mergers and buisness sales and have a relativley good understanding of the variouse legal obligations that both parties would need to comply with post sale/purchase and I would be only to please to see if I can be of some assistance to you if you do feel that the seller has duped you...:hug:

 

[geeg]

I don't think this thread was about good will. this poster is not selling her business as far as I am aware. She is trying to sell a list of clients who may have all found a new tech by the time she sells it ... she has no way of knowing if her clients will go to the person she sells it to. This is not the same as good will at all I don't think.

 

[collin]

Weather selling a whole buisness or part of a buisness (client base) the good will element still applies and can be valued acordingly.

In so far as guarantees for clients remaining with the new owner is concerned this is a matter of dudiligance when entering into the sale agreement and the risk the new buyer takes when taking over that client base.

Through the new owner of the client base providing as good a service as the previouse owners then there is no reason why there should be any loss of the client base purchased.

If good communication between seller,buyer and customers occurs prior to completion things will generally go acording to plan...both seller and buyer get what they want at a fair price and the customers are happy because excellent the service to them continues on.

a "win win " situation :hug: