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TOPIC: Book Subscription

Book Subscription 05 Mar 2006 05:25 #1

  • THamilton
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Ladys and Gentleman,

I am in need of some advise that I feel can only come from more experienced persons that have been around more than I have.

My mentor for the last 12 years is relocating to a more... warming climate. Texas to be exact- near Stephanville. Anyways, he has a successful business that he has talked about turning over to me. He has in the recent months, passed along alot of referrals. He does somewhere's in the neighborhood of $60 K a year in business.

My question to you all is how does one go about buying a book (list of clilents) and at what cost? It is something that we have talked about and I am certain that 95% of the clients would go with me as I have been there as a partner to shoe their horses for the last years.

I do not know what to offer as a fair price. The terms would be easily negotiated I am certain of that. My mentor is a great man and a super friend.

What are your thoughts and ideas? I know that most farriers haaave to build thier clientele up, and I also havae a successful following so to say; but here is an oppertunity to expand my business. Please advise.

Thank you.

Tony
"Nothing astonishes men so much as common sense and plain dealing" Ralph Waldo Emerson
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RE:Book Subscription 05 Mar 2006 12:57 #2

  • Dave Whitaker
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This is a tough one..... nice guy..good clients.....etc. Sounds like it should be worth big $$$$, right? I personally don't think it is. His client list is just that, HIS. They are under no contractual obligation to keep using him, you, or anyone else he recommends. If you feel 95% of the clients will switch to you when he leaves, they probably will do that wether he suggests they use you or not. I view exsisting farrier client lists as worth no more than any other "mailing" lists you can buy for pennies an entry from other entities. For instance, I can buy a DMV list for anyone who has registered a horse trailer, by zip code even, for 23 cents a person. If he has 40 clients to refer, thats 10 bucks!

Now, that all being said, I gather you have a long standing working relationship with this guy and have learned a ton from him, mostly at HIS expense. If you wanted to give him a "heh, thanks for all your help... here's some cash to help with the move", kind of gift, I think that would be great. It might be worth a couple grand to me. His client list, though, is pretty much worthless. If you have been paying attention, don't you already have it????? Dave


"Everything is for sale......some are just harder to buy than others......"
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RE:Book Subscription 05 Mar 2006 15:44 #3

  • solidrockshoer
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Dave makes good points but remember if your mentor is leaving then someone or many someones will be shoeing these horses. You have a jump on anyone else as you already know the schedule. You have to convince the owners to keep you! Good Luck! Gary
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RE:Book Subscription 05 Mar 2006 18:30 #4

  • Donald Ruff
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Tony,
I can remeber when i first started out, rode with allot of farriers and I still ride around with a few, makes for a fun day.

But this one lady she got pregnant and when she was making her last stop at ther clients she was sending them all to me. Was i thankful, you bet. However thing's cahnge and about 25% of the clients that she had reffered to me I reffered them to another new guy starting out after about a year. They werenot the kind of people I liked working for, all had various different thing's I was not to keen on.

Anyway, from about those 75% that she had shuffled my way i now hve maybe 50% of them. They wanted shoeing for about the same cost as dirt. So as prices went up they went out, and I have since been able to replace them with better horses to work on.

Don't get me wrong I was graciuos to this lady and she has become a good friend. I agree with Dave that the book of names is just that, a book of names. Same as a phone book.

Gary is spot on, now you have to get out there and convinvce the owners that you are the one they should stick with.

Best of luck to ya,
Don
Knowledge is Patience and Patience is Knowledge
Slow is Fast and Fast is Slow
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RE:Book Subscription 05 Mar 2006 19:38 #5

  • Bill Adams
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Tony,
What are the other offers that are beeing concidered? I'll bet zero.
What will happen is you will buy a list that a fair precentage of will walk away.
Think about this, when you shoe one of his horses, put ten bucks aside and send it to him at the end of the month. It won't break your bank, It will be a nice gesture and it will be more than he'll get otherwise.
My $0.02,
Bill

A rightous man regardeth the life of his beast. Proverbs 12:10
I don't give a damn for a man who can only spell a word one way. Mark Twain
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RE:Book Subscription 05 Mar 2006 21:21 #6

  • THamilton
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I would like to thank those that have offered advice to me. It means alot and puts things into alittle better perspective.

For those of you that viewed the message and considered but did not offer advice, I am still open. If you are not wanting to post for the public to see, you may send me a private message. I understand.

On a side note... I have enjoyed the posts here. While I may not post a lot of my own, I am always learning here and understanding more. Some day when I get a digital camera I will post and post and post... Knowlege is power!

Tony
"Nothing astonishes men so much as common sense and plain dealing" Ralph Waldo Emerson
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RE:Book Subscription 05 Mar 2006 22:08 #7

I agree that the list of names is worthless, so if he wants money for turning over his clients to you, then he has to make a real effort to ensure that they are going to use you. So here is how it should work, in my opinion.

First he must call all of his clients and tell them that since he is leaving he wants to make sure that his horse clients are well taken care of so he is refering his clients to you. He will get permission to forward thier information to you so you can contact them and make appointments. Once you've started to make appointments, he should accompany you to these barns, and in essence reverse the roles, you shoe the horses, he merely helps and offers suggestions. This will build up the confidence level of the owners in you. Now the important thing YOU MUST CHARGE EXACTLY WHAT HE CHARGED OR EVEN A SMALL PERCENTAGE MORE!!!!! If you go in and charge less they will expect less, if he was your mentor you should be able to take care of the horses as he did, and therefore you should charge what he did, you also don't want to sell yourself short cause you know they are willing to pay whatever he was charging.

So if he is willing to accompany you to the barns while the turnover is going on, I would offer him 30%-50% of the take of each day he go's with you. I also think it would be fair to offer him 10%-15% of the total after doing all of those horses one time. So if he charges $100 for shoes, he gives you 50 horses with shoes, thats $5000, I would offer him $500 give or take, for the help.

So 10% of the total after doing all the horses once, plus a percentage for helping turnover. I think that's fair. On the other hand, he's going to leave at some point and someone has to shoe those horses, if you're sure the clients already know your name, it would be pretty easy to go in and drum up the business. However I think out of respect for you mentor I would do the first way I described.

Dave
"Everybody is ignorant, only on different subjects." Will Rogers

http://www.youtube.com/watch?v=vBimQu6Pxxs
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