How much is your client list worth

[Mr Brightside]

I have an opportunity to purchase a competitors list of about 500 active clients and some decent commercial accounts

I’m having a hard time putting a value on it because they have always used his service and there is no guarantee they would use mine

All the data is in a crm and price information his prices are good

No phone number involved due to offering other services still

He isn’t cleaning carpets anymore

 

[Mikey P]

What does he think it's worth?

 

[Cleanworks]

I have an opportunity to purchase a competitors list of about 500 active clients and some decent commercial accounts

I’m having a hard time putting a value on it because they have always used his service and there is no guarantee they would use mine

All the data is in a crm and price information his prices are good

No phone number involved due to offering other services still

He isn’t cleaning carpets anymore

Rather than a cash buyout, see if he will take a commission on work booked on his customer list for the first year. 5% on jobs you book and 10% on jobs he refers to you.

 

[Mr Brightside]

What does he think it's worth?

15k

 

[Mr Brightside]

Rather than a cash buyout, see if he will take a commission on work booked on his customer list for the first year. 5% on jobs you book and 10% on jobs he refers to you.

Well that’s the thing I’m thinking also or half cash and half commission until paid

 

[BIG WOOD]

Did he handle the jobs or did he have employees handle it?

 

[Cleanworks]

$15,000 is pretty high in my opinion. Think about what kind of advertising you could do for that price. It's different if you can have the phone number forwarded to your phone. Better he refers the customers to you. Gives him a chance to explain who you are to the customer, that he trusts you to do a good job, etc. I would hesitate to put any cash money up in advance.

 

[BIG WOOD]

I think the location has a strong determination on how to value a customer list. I see you're in Southern California. Is that a little town or is that like a ridiculously overpopulated city?

Because if it's a little town with very few competitors and he's the best in the city and surrounding counties, then his customer list could be worth what he's asking. But if he's in a major metropolis with 500 other cleaning companies, 500 active customers is worth commission only per job.

 

[Mr Brightside]

Ok thanks ya he is talking about set

$15,000 is pretty high in my opinion. Think about what kind of advertising you could do for that price. It's different if you can have the phone number forwarded to your phone. Better he refers the customers to you. Gives him a chance to explain who you are to the customer, that he trusts you to do a good job, etc. I would hesitate to put any cash money up in advance.

He is talking about setting up a system that when people car for carpet cleaning they would press a number that would then be forwarded to my company

I just don’t know about how much I can make off his list
People at times don’t seem loyal in this industry and are looking for a deal

My customers want me or a deal

 

[Mr Brightside]

I think the location has a strong determination on how to value a customer list. I see you're in Southern California. Is that a little town or is that like a ridiculously overpopulated city?

Because if it's a little town with very few competitors and he's the best in the city and surrounding counties, then his customer list could be worth what he's asking. But if he's in a major metropolis with 500 other cleaning companies, 500 active customers is worth commission only per job.

Ok thanks yes there are endless amounts of competitors

 

[Cleanworks]

Ok thanks ya he is talking about set


He is talking about setting up a system that when people car for carpet cleaning they would press a number that would then be forwarded to my company

I just don’t know about how much I can make off his list
People at times don’t seem loyal in this industry and are looking for a deal

My customers want me or a deal

30 years ago I bought a small business, phone number, yellow pages ad, about 300 customers on index cards. It was a great start for me. Many customers never noticed the change. I paid about $5000 for everything, including an old beat up portable and some accessories. 30 years later, I still have a lot of the original customers and some of their children. (As customers that is)

 

[FB7777]

Without the number, you're buying a customer list that you are going to have to actively pursue


Edit... just saw where the company will forward to you manually.


You said what he thinks it is worth. What do you value it at?

 

[Mikey P]

does he have emails for all 500?

 

[Mr Brightside]

does he have emails for all 500?

No not all

 

[Desk Jockey]

30 years ago I bought a small business, phone number, yellow pages ad, about 300 customers on index cards. It was a great start for me. Many customers never noticed the change. I paid about $5000 for everything, including an old beat up portable and some accessories. 30 years later, I still have a lot of the original customers and some of their children. (As customers that is)

AND...the portable.

 

[Nomad74]

This sounds like a Matt Wood type of question

 

[Desk Jockey]

Sure seems like a lot for 500 clients. How active is the list? What was his annual book of business with them?

 

[Nomad74]

500? You'd have better results cold calling the phone book.

 

[Cleanworks]

AND...the portable.

That portable bit the dust a long time ago. GH Wood 60 psi machine with a hydro brush. I used to take jobs away from truck mounts all the time.

 

[FB7777]

I think the location has a strong determination on how to value a customer list. I see you're in Southern California. Is that a little town or is that like a ridiculously overpopulated city?

Because if it's a little town with very few competitors and he's the best in the city and surrounding counties, then his customer list could be worth what he's asking. But if he's in a major metropolis with 500 other cleaning companies, 500 active customers is worth commission only per job.

I'd also be interested in how many are repeat customers and how long commercial accounts have been on board

 

[Nomad74]

The value of a carpet cleaning business is not really in the beat up equipment. It's in the "Book of business". You are buying his book. Unless these customers are on contracts that revolve, don't do it. They are just names on paper unless they are locked into contracts. If you are in the Mecca of southern Ca, you should have no problem finding your own customers.

 

[Mr Brightside]

The value of a carpet cleaning business is not really in the beat up equipment. It's in the "Book of business". You are buying his book. Unless these customers are on contracts that revolve, don't do it. They are just names on paper unless they are locked into contracts. If you are in the Mecca of southern Ca, you should have no problem finding your own customers.

I can definitely find my own but what If I did both haha

 

[Mr Brightside]

I’m thinking that it’s not worth it like you said it’s just a list no number it’s tough

 

[Nomad74]

I can definitely find my own but what If I did both haha

Well, then you would have flushed $15k down the shitter.

 

[Desk Jockey]

Well, then you would have flushed $15k down the shitter.

Send me $5k and next year I'll tell you that you wasted your money.

 

[BIG WOOD]

If you're not getting his phone number, it's not worth anything.

 

[Mr Brightside]

Send me $5k and next year I'll tell you that you wasted your money.

Please don’t tell me this was another mentoring session @ 500$

 

[Mr Brightside]

Ok I guess I have a fear of missing out... I don’t want to pass up an opportunity if it is an opportunity
If not then there is nothing to miss out on

 

[Nomad74]

Ok I guess I have a fear of missing out... I don’t want to pass up an opportunity if it is an opportunity
If not then there is nothing to miss out on

You're not missing out. What's the guy going to do? He'll have to refer someone, hang up on the caller, or go clean it himself. Focus on a good website, building relationships, and referrals. That will keep you busy.

 

[Mr Brightside]

Thanks you are a 100% right

I am the highest rated and reviewed guy in the area anyway so maybe they will find their way to me naturally