When buying an existing salon, how do you transfer funds for existing memberships? - Page 2

Dustin · 08-16-2006, 02:56 PM

I would see if the old owner would split the cost with you so you don't have to eat it all, but you may have to eat it to keep them happy.

glowtanning530 · 08-16-2006, 06:00 PM

I had this happen. If the owner (now this is depending on your real estate laws) doesn't write it into the escrow you are under no obligation to honor, but as glo said you will have a lot of ****** off people. I actaully had the owner selling one year unlimiteds for 1/2 off when I heard this I called my attorney pulled out and rewrote my agreement that nothing but single tans would be sold 15 days prior to the sale of the salon. I honored everything else. I changed the name also it doesn't mean anything to an angry client. Take care of them. Word of mouth is everything.

Also if you decide to change the name make sure you are not paying for the name when its all broken down on paper

Tony Rich · 08-17-2006, 11:24 AM

Eat the costs and keep the customers happy. Thats what I did. It hurts a little while you have to do it but I think the customers respect you more for taking care of them and they in return will stay loyal.

international · 08-17-2006, 07:02 PM

keep customers happy imo eat it bc hopefully they will come back and buy a new package from you.

newbiemo · 08-24-2006, 12:42 PM

Went through the same here! I ate the cost unless they had purchased points that never expired and had not used them in over 6 months, in which case they magically dissppeared. However, I did post a sign everywhere in the salon saying that their previously purchased points packages would be expiring in 45 days. I then sold them new monthly packages. Worked out great, only had like 2 people complain.

Smileysnob · 09-17-2007, 12:00 PM

Quote:

Originally Posted by Kristyna

I am in the process of purchasing an existing tanning salon. I was wondering how the transfer of existing memberships for which the seller collected the funds, but the client hasn't used part or all of their time yet as of the time of the transfer of the business, leaving me with the cost of fulfilling those memberships. How do I approach the seller with transferring funds to cover the cost of those memberships? An how do you put a value on the partially used memberships?
I hope I'm making sense here. Help!!!

I am currently in the process of purchasing a salon - The owners when they bought it were so mad they didnt think of this and so they are eating those costs! The clients are technically tanning for free since they paid the previous owner! This time, they are going to transfer that money over to me!! thank goodness~!

JIMJEN · 09-17-2007, 01:03 PM

Quote:

Originally Posted by Mr Derf

Eat it!

Tee hee

rgm824 · 09-17-2007, 01:09 PM

when we purchased the salon - we tallied up the actual cost of memberships remaining and deducted that from the sale price -

Smileysnob · 09-17-2007, 01:25 PM

Quote:

Originally Posted by rgm824

when we purchased the salon - we tallied up the actual cost of memberships remaining and deducted that from the sale price -

yea, in so many words that is what they will do for me. Its nice b/c you dont have to let anyone tan for "free"

megatanman · 09-17-2007, 02:20 PM

I asked the seller to pro rate waht was left on existing memeberships and deduct from the selling price.

Unfortunately she was a cheap B*tch and decided to screw her customers
She deleted all outstanding packages and sessions,When the customers came back in,they were like"what happened to my membership?"I explained to them how the business was transferred and how the previous owner deleted there memberships.They were p*ssed! Some of them were her friends too.

I didn't give them her number,but I told them where she was working now.Most of them collected from her and came back as customers.

Thats why you don't "buy" and existing business.Do an asset purchase and form your own corporation.

08-16-2006, 02:56 PM	#11 (permalink)
Dustin Official BFF Member Join Date: Feb 10 2005 Location: CO Posts: 5,926 Rep Power: 9	Re: When buying an existing salon, how do you transfer funds for existing memberships? I would see if the old owner would split the cost with you so you don't have to eat it all, but you may have to eat it to keep them happy. __________________ www.voremarketing.com www.tanningbedsandsupplies.com www.votanningsupply.com

08-16-2006, 06:00 PM	#12 (permalink)
glowtanning530 Join Date: Jan 20 2006 Location: folding towels, cleaning beds, ordering lotions, fixing beds, etc. etc. etc. etc. etc. Age: 28 Posts: 1,125 Rep Power: 114	Re: When buying an existing salon, how do you transfer funds for existing memberships? I had this happen. If the owner (now this is depending on your real estate laws) doesn't write it into the escrow you are under no obligation to honor, but as glo said you will have a lot of ****** off people. I actaully had the owner selling one year unlimiteds for 1/2 off when I heard this I called my attorney pulled out and rewrote my agreement that nothing but single tans would be sold 15 days prior to the sale of the salon. I honored everything else. I changed the name also it doesn't mean anything to an angry client. Take care of them. Word of mouth is everything. Also if you decide to change the name make sure you are not paying for the name when its all broken down on paper

08-17-2006, 11:24 AM	#13 (permalink)
Tony Rich Join Date: Jan 2 2006 Location: Langhorne PA Posts: 17 Rep Power: 0	Re: When buying an existing salon, how do you transfer funds for existing memberships? Eat the costs and keep the customers happy. Thats what I did. It hurts a little while you have to do it but I think the customers respect you more for taking care of them and they in return will stay loyal.

08-17-2006, 07:02 PM	#14 (permalink)
international I love Derf!! Join Date: Jun 22 2006 Location: Central NJ Posts: 2,693 Rep Power: 4	Re: When buying an existing salon, how do you transfer funds for existing memberships? keep customers happy imo eat it bc hopefully they will come back and buy a new package from you. __________________ International Tan Great Skin. Great Tan. Great You. www.ComeTanWithUs.com Internationally known as the best place to tan...

08-24-2006, 12:42 PM	#15 (permalink)
newbiemo Join Date: Dec 12 2005 Location: OK Age: 39 Posts: 68 Rep Power: 0	Re: When buying an existing salon, how do you transfer funds for existing memberships? Went through the same here! I ate the cost unless they had purchased points that never expired and had not used them in over 6 months, in which case they magically dissppeared. However, I did post a sign everywhere in the salon saying that their previously purchased points packages would be expiring in 45 days. I then sold them new monthly packages. Worked out great, only had like 2 people complain. __________________ Happy Tannin'

09-17-2007, 01:09 PM	#18 (permalink)
rgm824 I love Derf!! Join Date: Aug 2 2004 Location: Washington State Posts: 921 Rep Power: 7	Re: When buying an existing salon, how do you transfer funds for existing memberships when we purchased the salon - we tallied up the actual cost of memberships remaining and deducted that from the sale price - __________________ Where _______ Tan!

09-17-2007, 02:20 PM	#20 (permalink)
megatanman I love Derf!! Join Date: Aug 17 2007 Location: Ohio Posts: 242 Rep Power: 1	Re: When buying an existing salon, how do you transfer funds for existing memberships I asked the seller to pro rate waht was left on existing memeberships and deduct from the selling price. Unfortunately she was a cheap Btch and decided to screw her customers She deleted all outstanding packages and sessions,When the customers came back in,they were like"what happened to my membership?"I explained to them how the business was transferred and how the previous owner deleted there memberships.They were pssed! Some of them were her friends too. I didn't give them her number,but I told them where she was working now.Most of them collected from her and came back as customers. Thats why you don't "buy" and existing business.Do an asset purchase and form your own corporation.

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