how much is a customer lists worth ?

[exploited]

Hi guys

Looking after some advice.

Been running my own carpet cleaning business for 4 years now and looking to sell it.
My turnover is 100,000 a year 60% of that is profit after tax and the turnover has been increasing each year.
Dont have any employees at the moment which i know devaulues the business.

Does anyone have a rough figure that the business can be sold for. Have just had my new website put up which cost close to 5,000 , flyers, magnets ,etc

 

[FLYERMAN]

It will be worth different amounts to different people. So it depends on which type of customers you have i.e. commercial/residential or fast paying vs slow paying.

With that said there is another deciding factor. Where you live how much would I have to pay in advertising dollars to get the amount of work you're selling me? It looks like you're doing about 9K a month in work and if I spent about 3k a month in advertising I would get 9K in work. So if I did that for a year I'd have as much work as you're selling and that would be about what your list is worth, in my mind anyway. So the highest I would pay for your list is 36K.

 

[Larry B]

Are you going to guarantee the buyer a return on investment?
Not to sound like an @$$ here but if your just selling a list I dont see much $ value in that. Sure the buyer may get a couple jobs but there is nothing to say your customers would switch to the buyer just because he has your list. Not to mention for $100 I can purchase a mailing list and offer it up for sale as a customer list (Not saying your doing this).

 

[Royal Man]

A business is just used equipment without, returning clients, a long term positive reputation, a high ranking web presence and online client reviews.

You need to work on a few of these items.


Just a note: Why do so many cleaners in your area use the word FRESH in their names. (7)

It could make your business get easily confused with an other?

 

[ruff]

if I spent about 3k a month in advertising I would get 9K in work.

Ken,
I am curious, where did you get that number from?

If your claim will be taken to it's logical conclusion, everybody that has say 10,000.00 dollars to invest in advertising (after all other expenses, equipment etc; were paid) can quickly achieve a multimillion business in no time.

Are you privy to some secret?
Have you been holding back on us?
Is your business in the hundreds of million level yet? As you have had 22 years to practice this magic.

 

[Royal Man]

The spend X and get back X in guaranteed work just doesn't work.

You can waste money on the many forms of ineffective advertising (We all have) or even find very low cost ways to advertise that is extremely effective.

Like now, you can do free or very low cost things on the Internet and bring in more than what used to be paid for a $1000 a month YP ad.

Advertising can also be relative based on location and competition.

What works in some areas simply doesn't work in others.

In my area for instance flyers are a complete waste of time and effort.

No advertising is guaranteed although with testing you can find which ones have the best return for your area.

 

[jcooper]

5K for a website?!

 

[greentech]

Larry,

How long did it take to train that bear to push a wand?

 

[Royal Man]

5K for a website?!

And it has no rank making it invisible to prospects.

Real worth is then about 5 bucks.

 

[Larry B]

Larry,

How long did it take to train that bear to push a wand?

He's on the reward system, if he pushes the wand good after hours he gets to use the hose on himself & he likes that roots 47. :mrgreen: