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

Kristyna · 08-16-2006, 10:34 AM

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!!!

glotan · 08-16-2006, 10:41 AM

I get what you're saying.

I had the same dillema when I bought my salon. Options (as I saw them then) were to
1. close the salon for a week (or whatever) then re-open under a new name. All the clients basically lose their memberships & money. Technically then, the old owners are responsible, but you will take all the grief.
2. eat the cost and keep the members happy.

I chose the latter and didn't feel very good about it, but in my situation, I thought it was the right thing to do.

Anyone else have ideas?

BooBop · 08-16-2006, 10:46 AM

We ate the cost and kept our clients happy... Remember they are your future.

If you can get the seller to give you $$ off the purchase price for unused visits, great.

For example: Pkg of 10 tans = 60.00, client has used 3 of them = 18.00, seller gives you 42.00 off x all other unused.. GOOD LUCK getting that tho.

caribbean tan man · 08-16-2006, 10:47 AM

that should all be in the selling price. after a deposit is placed money from packages sold should go to you or atleast 1/2 and 1/2. this is all negotiated before the sale price is determined. if they are computerized run a report on client status.

but either way you must honor them youll have no choice.

Mr Derf · 08-16-2006, 10:48 AM

Eat it!

KnxTan · 08-16-2006, 10:49 AM

Ask that a months sales be taken off the purchase price. If not, eat it - you need those customers.

TanWorldOrder · 08-16-2006, 10:58 AM

some of us have spent thousands to get maybe 5 customers with certain failed marketing attempts. Be happy you already have these people!

caribbean tan man · 08-16-2006, 11:08 AM

hay when i bought my salon i let the previous owners sell packages up until the day i took over...my own fault for being unexperienced.

but atleast i was busy.

i then decided to go thru the customers that had old expired visits (client cards even and it took 4eva) and offer them their expired visits back if they bought a new package off me which would not expire. worked great

international · 08-16-2006, 11:15 AM

When i purchased my salon we printed out the customer status through helios and rounded a number we both agreed upon through the lawyer etc. that i would be credited off the purchase price for exsisting packages that people would be comming into use.

caribbean tan man · 08-16-2006, 11:18 AM

exactly /\

08-16-2006, 10:34 AM	#1 (permalink)
Kristyna Join Date: Aug 16 2006 Location: Rocklin Posts: 1 Rep Power: 0	When buying an existing salon, how do you transfer funds for existing memberships? 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!!!

08-16-2006, 10:41 AM	#2 (permalink)
glotan Join Date: May 11 2006 Location: Loveville, Center City Posts: 961 Rep Power: 6	Re: When buying an existing salon, how do you transfer funds for existing memberships? I get what you're saying. I had the same dillema when I bought my salon. Options (as I saw them then) were to 1. close the salon for a week (or whatever) then re-open under a new name. All the clients basically lose their memberships & money. Technically then, the old owners are responsible, but you will take all the grief. 2. eat the cost and keep the members happy. I chose the latter and didn't feel very good about it, but in my situation, I thought it was the right thing to do. Anyone else have ideas?

08-16-2006, 10:46 AM	#3 (permalink)
BooBop I love Derf!! Join Date: Apr 5 2001 Posts: 9,489 Rep Power: 13	Re: When buying an existing salon, how do you transfer funds for existing memberships? We ate the cost and kept our clients happy... Remember they are your future. If you can get the seller to give you $$ off the purchase price for unused visits, great. For example: Pkg of 10 tans = 60.00, client has used 3 of them = 18.00, seller gives you 42.00 off x all other unused.. GOOD LUCK getting that tho.

08-16-2006, 10:47 AM	#4 (permalink)
caribbean tan man DERFTALK FBI AGENT Join Date: Jul 29 2003 Location: northeast Age: 32 Posts: 5,059 Rep Power: 30	Re: When buying an existing salon, how do you transfer funds for existing memberships? that should all be in the selling price. after a deposit is placed money from packages sold should go to you or atleast 1/2 and 1/2. this is all negotiated before the sale price is determined. if they are computerized run a report on client status. but either way you must honor them youll have no choice. __________________ someone PM me when a good tanning topic is posted. :lol:

08-16-2006, 10:48 AM	#5 (permalink)
Mr Derf Vote Derf 4 Prez! Join Date: Jun 29 2006 Location: NE Age: 45 Posts: 2,468 Rep Power: 9	Re: When buying an existing salon, how do you transfer funds for existing memberships? Eat it!

08-16-2006, 10:49 AM	#6 (permalink)
KnxTan I love Derf!! Join Date: Oct 8 2004 Posts: 1,033 Rep Power: 8	Re: When buying an existing salon, how do you transfer funds for existing memberships? Ask that a months sales be taken off the purchase price. If not, eat it - you need those customers. __________________ A liberal is someone who is so open minded, their brain has fallen out. “Life is tough, but it's tougher when you're stupid.”

08-16-2006, 10:58 AM	#7 (permalink)
TanWorldOrder Join Date: May 23 2006 Location: Everywhere Posts: 758 Rep Power: 4	Re: When buying an existing salon, how do you transfer funds for existing memberships? some of us have spent thousands to get maybe 5 customers with certain failed marketing attempts. Be happy you already have these people!

08-16-2006, 11:08 AM	#8 (permalink)
caribbean tan man DERFTALK FBI AGENT Join Date: Jul 29 2003 Location: northeast Age: 32 Posts: 5,059 Rep Power: 30	Re: When buying an existing salon, how do you transfer funds for existing memberships? hay when i bought my salon i let the previous owners sell packages up until the day i took over...my own fault for being unexperienced. but atleast i was busy. i then decided to go thru the customers that had old expired visits (client cards even and it took 4eva) and offer them their expired visits back if they bought a new package off me which would not expire. worked great __________________ someone PM me when a good tanning topic is posted. :lol:

08-16-2006, 11:15 AM	#9 (permalink)
international I love Derf!! Join Date: Jun 22 2006 Location: Central NJ Posts: 2,698 Rep Power: 4	Re: When buying an existing salon, how do you transfer funds for existing memberships? When i purchased my salon we printed out the customer status through helios and rounded a number we both agreed upon through the lawyer etc. that i would be credited off the purchase price for exsisting packages that people would be comming into use. __________________ International Tan Great Skin. Great Tan. Great You. www.ComeTanWithUs.com Internationally known as the best place to tan...

08-16-2006, 11:18 AM	#10 (permalink)
caribbean tan man DERFTALK FBI AGENT Join Date: Jul 29 2003 Location: northeast Age: 32 Posts: 5,059 Rep Power: 30	Re: When buying an existing salon, how do you transfer funds for existing memberships? exactly /\ __________________ someone PM me when a good tanning topic is posted. :lol:

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