Value of tuning business

[ITUNEPIANO at aol.com]

Buyer should determine his current cost to get a new customer.  This  cost is 
the MAX he should pay for an active customer.  Now look at the  seller's 
customer list.  
 
Multiply # customers tuned in 2006 by 50%
Multiply # customers tuned in 2005 by 20%
Multiply # customers tuned in 2004 by 5%
Throw out everyone older than that.   This will be an  estimate of your 
customer base if you are buying a good business from a good  tuner, who has 
maintained his list.    Now, suppose this  adds up to 400 customers and it costs you 
20.00 to get a new customer-  multiply 400 times $20 for $8,000 and this is 
the MOST you should pay for the  list.  Now deduct from that penalties for a 
non-computerized list, assuming  existing advertising, or phone numbers, list not 
well maintained, discounted  work (store work is worth almost zero).  
Evaluate the business income is it  dropping or growing?  Look at expenses, are they 
understated to increase  income?   What is owners reputation?  After deducting 
 the fair value of any negatives from the $8,000 price, work out a payment 
method  for the value of the business.  I  
 



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