Searched for this, but didn't seem to find anything. Is there any type of standard practice for purchasing a retiring piano tuners "business", i.e., their phone number, client list, tools, etc.

My friend, a tuner from Vienna told me that he was negotiating to buy the list of clients, including personal references from an retiring top class tuner. The price was 30000 euro, and he thought that it is worth that money.

It depends on the circumstances. There is no "Standard" value that I am aware of. Tools are usually sold for what a person can get for them. While we all love tools and seem to never tire of collecting them, if the new tuner doesn't have the tools for the job, I suspect he/she also lacks the skill and experience needed to take over a client list from a retiring tuner. So the tools may have very little value to the person wanting to take over another business, if they are already a professional.

I have heard that in other industries, a business's "Good Will" as non-tangible business assets are called, can be worth 30% of the yearly revenue. In tuning, I think that may be over-valuing it.

If you are in a smaller locale with only a few tuners, and one of them retires without passing his clients on to someone else, these people will be calling whoever is still working in the area. So if you are already in business, a certain portion of them will become your clients at no additional cost to you.

Paying a large sum for a client list of a top tuner is only worth it if you are capable of filling those shoes and doing work that is at least as good. High end clients will be discriminating and not loyal to just any person who gets their name and phone number.

If you do buy a business make sure that the clients are aware of the change. People will resent having their contact info handed over to someone they don't know. If I were to buy a business I would insist that the seller send out a postcard or letter explaining to all the clients that the seller is indorsing me and has the utmost confidence that the clients will be well taken care of.

In one case I know of, a technician sold a client list and also forwarded the old phone number to the new technicians line. Some people were confused and resentful that they thought they were calling the old tech yet someone they didn't know picked up the phone.

Also, know what kind of business you are buying. Do your homework and find as many details on the reputation of the business as possible. A huge list of clients that only occasionally have their under-maintained spinets and old uprights tuned is not worth nearly as much as a small list of 3-4 time a year Steinway owners.

The important parts of a tuner's business are the phone number, customer list/files, control of advertising, email address and web site.

The general fit would be a factor - do I cover the same area? The same types of customers? The same pricing? The same advertising?

Good will would not be a factor for me.

Schools and churches have little value unless there are transferable contracts in place.

Some types of advertising would be a negative for me, while others would be positive.

The price the departing tuner was charging would be important. If too low (as is the case for most older tuners) - that would devalue the business. Conversely, a high priced tuning price would carry a premium.

I would really need to evaluate the customer list and income to determine what I'm willing to pay for a business. The seller should be very transparent with information, including his recent schedule C's .

What you will want to do is tie the purchase to performance. You pay a percentage of all work (for a period of time defined) that comes in from his client list. He will in turn send a letter to EVERYBODY on his client list explaining that he carefully selected you, and you will both sink or swim on his positive representations AND your great service work. Payment not to exceed X amount, nor for more than X number of years etc.

I structured this very deal once, and it went perfectly. PM me if you want more details.

RPD

For you can buy the phone list, email, web site, you can't buy the technique, nor the personal relationship, non the working style.

I am new to tuning business, also not have experience in your city. I had observed some buy/sales small restaurant. The business is very good at beginning, then closed after a few months.

I agree buying an existing business is a shortcut. If you want to success by buying, you could consider these:

Ask the tuner bring you to field work. Introduce you to clients by person.
Observe and learn how he interact with clients.
Pay him extra for mentor-ship to learn his skill.
Pay him extra for after retired follow up. In case you have some hard to resolve conflict with client, ask for help.

Also consider alternatives. The retired tuner refer business to you. You pay him per job commission... and a lot more alternatives.

Hope you success!

This is basically what has happened around here. We have had a number of tuners retire in recent years. All have tried to sell or otherwise leverage their business. But it just hasn't worked out. Those of us around who do decent work are already busy. So these lists have little value. Those customers who lose a tuner need to call somebody. Unfortunately for those tuners who have retired, they really haven't received much, if anything, for their businesses.

There isn't much to sell unless there is a building with a shop and employees etc. Usually the tuners working the area will absorb the customer base.

You could try working under his name for a year or so so the customers become familiar with you. Giving the seller a preset fee for each completed service call.

I would suggest what Dave B said. Work with him for a year so the customers get to know YOU. I am doing that very thing with someone here in my area right now. Sending him into my churches, my college, some homes, introducing him to my clients, letting them get to know him. I don't plan on retiring anytime soon but, should I choose to do so, he'll be set to go and I personally wouldn't retire unless he bought it from me. I own my name. I have it registered with the city as a DBA and now, I'm incorporated too so nobody else can use my name but me.

I pm'd you on specifically what I did several years ago to assist a friend/competitor who was going into illness and needed to sell his practice...we made it a legal contract...

For the general readership, what we did was tie the transition to strictly my retention of any clients he had...he sent a great intro letter to his customers, and I paid him a percentage of the business he had built, not to exceed a certain number and for no longer than four years (whichever came first)

My friend retired and ultimately got a substantial payment over a four year period for his business, while we enjoyed a huge boost in customers.

He won, I won, and I've retained 90% of his clientele, on top of what we had going on...we're swamped...it worked wonderfully.

FYI

RPD

That's quite correct...my friend who was trying to sell his business was running into "why should we pay you when we'll get the customers anyway?"...words to that effect from other tuners...

I however recognized that hundreds of pre-scheduled customers would be a HUGE boon for our business if it could transition correctly, and we had a cup of coffee and wrote up the plan.

Pre scheduled clients made it a no-brainer, and his database calls he also got a percentage of....

Win win...

RPD

Sounds to me like you are a very smart business man Stan er, well, Rick didn't rhyme, sorry!

...smart?...not so sure in general, but the merging of the two schedules worked particularily well for us!

Now, for my next growth project for our business....I'm changing my last name to Groot.

(I just thought you'd like to know LOL)

Haha, funny Rick! Good luck with that one! Actually, I registered it legally with the State of Michigan and paid for it too, any way possible related to the word Groot so nobody else can use that name in any way shape or form but for me! I own it. I could, technically, even force my cousin out of business seeing as we run both of our businesses' separately... But, I ain't THAT much of a dufis! Just look at my Avatar. That says it all!

Well, anyone with two consecutive O's in his last name HAS to be a fantastic technician.

Thanks Eric.

Reminds me, I once knew a guy named Bob who would go around introducing himself, "Hi, my name's Bob with one "O".