How much is a customer base worth??

[peter d]

There are no guarantees in life. BUT if you do you homework, have a good head and treat them fairly having an existing customer base is better than starting off cold.

Yes, but I'm not paying a nickel for them. Maybe someone else will, but not me.

 

[emahler]

There are no guarantees in life. BUT if you do you homework, have a good head and treat them fairly having an existing customer base is better than starting off cold.

without some guarantee, it's not an investment....it's a gamble...an uneducated gamble at that...

 

[peter d]

Another issue to consider: A "good" customer base in one contractor's eyes may be a bad customer base in another, once again proving that a customer base has no value.

 

[fisherelectric]

A customer base may be of questionable value, but how about a business phone number thats been around for 20-25 years. I get a lot of calls from people who say they got my number from somewhere, word of mouth, a panel sticker, an old card etc. Or would you consider that part of a customer base? I have heard of some of these franchise operations offering big bucks for numbers that have been out there a long time.

 

[Brady Electric]

How much is a customer base worth?

How much is a customer base worth?

Great answer! If the company has a good name and it's staying in the family and very little is changing, other than the owner..it has some value.

You might ask that your father-in-law be on some sort of retainer to help in the transition. It would also make him and your wife feel good.

I agree with the form.
A customer base is worth $0
I bought a sand business years ago to deliver sand to brick layers and paid the owner a small sum for his business, which he went around and encouraged everyone to do business with me. I'm glad it didn't cost me much because in about two months some customers left because of not understanding the old owner which had the business for about twenty years was never around and went to another trucker. Again customers $0 worth.
You can run customers off in a week.
The only way customers are worth anything in this case is if father in law's name is still involved in the business as quoted above.
As usual this form has good advice, you can't beat years in the trade and putting thoughts together for good advice.
Semper Fi Buddy

 

[iwire]

90% of my work is for 10% of my customers, I think a good customer base is priceless.

It's great for you, will that same base be good for a new guy?

My guess is that the 10% of the customers that provide 90% of you work call you personally when they have questions or problems, not your company.

If you and your partner sold the business to a new guy it seems to me those great customers would feel lost and might well start looking elsewhere if the new point of contact was not the same personality that you are. :smile:

 

[SEO]

Huh? You mean run a business to make paycheck wages?

My paycheck wages are very good. I am payed a salary which is general formans wages and the if times are good the company makes more money which is mine as well.