How can I tell if a furniture store’s sales team has loyal customers of their own?
Ask who the repeat customers return to: the store or a particular salesperson. Look at sales records by salesperson, repeat purchases and who handles follow-up. If a few people hold most of the relationships, a buyer should learn how likely they are to stay, and whether any would take clients with them.
Furniture is a considered purchase, so clients often build a bond with one advisor. Ask the seller to show sales by person over a stretch of time, and check whether the top performers are bringing in business through referrals and repeat visits or through store traffic.
Next, find out how the customer information is stored. If notes, phone numbers and past orders live in the store’s system, the relationships are partly the store’s. If they sit in a salesperson’s phone, they may not be. Ask how follow-up happens after delivery.
Then look at the people. How long has each one worked there? How are they paid? Are there written agreements about leaving and soliciting clients? Your lawyer can say what such terms mean in practice. With the seller’s permission, talk to the top performers, and ask what would keep them. Plan how to introduce yourself to their clients early. Finally, ask how the store would introduce a new owner to those clients, and whether the team has been told about the sale. Their reaction will tell you a great deal about how much they trust the business and how they see their own future in it.
Key takeaways
- Compare sales by salesperson and see how much comes from repeat clients and referrals.
- Check whether customer notes and contacts are held in the store’s system or personal phones.
- Meet the top performers early, and ask your lawyer about any agreements that cover leaving.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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