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Thread: Value of customer list?

  1. #1
    Senior Member
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    Default Value of customer list?

    How would you determine the value of the client list for a full-service limo company (9 years old).

    Virtually all of the assets (cars, limos, SUVs) have been sold. The client list reputedly has ~1000 clients, regular weekly corporate to occasional.

    What questions should I be asking?
    Bill Payne
    American Limousine, LLC
    Lake Wylie, SC
    704.576.5309
    Celebrating 9 years of superior service to the Charlotte, NC market. Serving corporate and individual clients with sedans, vans and limousines.

  2. #2
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    It's hard to gauge without seeing the numbers. Do you get his phone # and website with these clients? I would think that's more important. Also how long has he been out of business? Corporate clients are going to find someone, they aren't going to stop using transportation service because he shut down. If anything I would lowball him.

  3. #3
    Senior Member LIMOJESS's Avatar
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    Default

    Daily sales is also important.

  4. #4
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    Depends on who is on the client list. If the client is used to paying McDonald's prices, it would be a waste of money for Ruth's Chris to buy that list because the people aren't going to want to pay the higher prices.
    Tim Wiegman, Jr.
    Boulevard Limousine
    Travel Confidently!
    Serving Kansas City, Lawrence, Topeka
    http://www.BoulevardLimoKC.com - Kansas City Limos
    KC Airport Car Service

  5. #5

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    Very valid points have been brought up. You need to determine if his rates were similar to yours. My take is that his client list wasn't that great or he wouldn't be out of business. 1000 clients in 9 years... That doesn't sound that great to me either as it works out to be just over 100 per year. I'd also venture to say that anyone that hasn't booked with him in the last two years is not worth anything.

    And if it's just a client list with no related data (as far as how often the client booked with him and at what rate), I'd give him no more than $100 for his list if I was feeling generous that day.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  6. #6

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    Interesting question. It seems to me that most customers in this business stick with a company/PERSON they like.

    You can buy his list...but I guarantee you some of the clients will jump ship due to the fact that their normal 'guy' isnt driving.

    I had someone offer to sell me his Rolodex for 30 grand. That was 6 years ago. He STILL trying to get someone to buy his company. He has clients who fly in and out of town every week but I wouldn't gamble they'll stay.

  7. #7
    Senior Member Cedar Mill Limousine's Avatar
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    Interesting answers, it would be much higher if phone/website came with it. People are creatures of habit and like to stick with "their guy" or whoever "their guy" sold out to...but people really don't like companies calling them trying to sell. If you only get list then you have to call and sell...you can do that without the list - really want them to call you.
    Rich Rottier
    219.808.0976 | richrottier@gmail.com

  8. #8
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    Default Reason for Sale

    Turns out the guy came into an inheritance, wife had twins, so he just decided to go in another direction. Sold all his rolling stock to a number of out of area companies, but did keep his specialty wedding cars, which were revenue producers.

    Rural area, so not a lot of corporate opportunities, but also not many options for those who need transportation.

    He decided his customer list was worth more than the suggested values so we've put ourselves in front of his corporate clients.
    Last edited by wimpy01; April 14th, 2014 at 09:20 AM.
    Bill Payne
    American Limousine, LLC
    Lake Wylie, SC
    704.576.5309
    Celebrating 9 years of superior service to the Charlotte, NC market. Serving corporate and individual clients with sedans, vans and limousines.

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