Thank you all for your replies, it have given me alot to think about. I have to add that I think she is entitled some money for good will, it's just really knowing how much to pay for it. I will keep you updated
Taking over a room, paying for good will, how?
- Thread starter jayt
- Start date
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Hi Yvonne,
I really can't see what you think is worth buying from this lady? She could sell you her client list, but how many are active? How do you know she's not already contacted them all and is going to be working mobile or from home?
Are you taking over her trading name, website, advertising etc?
jes
I really can't see what you think is worth buying from this lady? She could sell you her client list, but how many are active? How do you know she's not already contacted them all and is going to be working mobile or from home?
Are you taking over her trading name, website, advertising etc?
jes
I was in a similar situtaion to this when i started my business in a hotel. The lady who was there before me wanted to sell me her "business" for far more than the value of her equipment/stock... i knew she was quitting because business had been quiet so there was no way i was gunna pay her for imaginary client base.
in the end i didnt take her up on it... i just waited for her to move out and then the hotel asked me to move in and i started afresh buying everything from new... which actually cost me less than she wanted for the 2nd hand stuff even after redecorating etc!
once i was up and going all her old clients came back to me anyway because they heard the salon was open again and they were happy to return for conviences sake if nothing else.
i wouldnt change a thing. i would be careful about buying "goodwill", likie someonelse said the clients will go wherever the please in the end
i hope this helps.
in the end i didnt take her up on it... i just waited for her to move out and then the hotel asked me to move in and i started afresh buying everything from new... which actually cost me less than she wanted for the 2nd hand stuff even after redecorating etc!
once i was up and going all her old clients came back to me anyway because they heard the salon was open again and they were happy to return for conviences sake if nothing else.
i wouldnt change a thing. i would be careful about buying "goodwill", likie someonelse said the clients will go wherever the please in the end
i hope this helps.
... oh also one other thing.... find out how many gift vouchers she has in circulation.... coz if u take over her "business" u will prob be expected to honour these...
the lady i moved in after never mentioned this at the time she was tryin to sell it to me and it turns out a few ppl rolled in with various vouchers after she'd packed up and gone...
the lady i moved in after never mentioned this at the time she was tryin to sell it to me and it turns out a few ppl rolled in with various vouchers after she'd packed up and gone...
True about the gift vouchers.
I once belonged to a tanning salon that had a great reputation. I had purchased a package, and returned to use it one day. I arrived and was politely told the salon had been sold, and the new owner was not honoring previous packages that had been purchased. The salon name hadn't changed, and there was no new equipment.
Needless to say, I didn't return. And I told all my friends.
I once belonged to a tanning salon that had a great reputation. I had purchased a package, and returned to use it one day. I arrived and was politely told the salon had been sold, and the new owner was not honoring previous packages that had been purchased. The salon name hadn't changed, and there was no new equipment.
Needless to say, I didn't return. And I told all my friends.
