How do repair drop-off partners like dry cleaners feed a shoe repair shop?
A partner collects shoes from its own customers, sends them to the repair shop and returns them finished, usually in exchange for a share of the fee. Ask which partners send the most work, what each is paid, how long the arrangement has run, and whether it survives a change of owner.
For a shoe repair shop, a drop-off partner is a branch that costs little to run. Customers leave shoes with a trusted neighbour and the repair shop handles the work. The question is how dependent the shop has become on those partners. Ask about turnaround as well. Partners that promise customers a date depend on the shop to keep it, so find out how often jobs run late and how partners react when they do.
Ask for the list. Which businesses send shoes, how often and how much of the shop’s work comes from each? One partner supplying a large share is a risk, especially if the relationship rests on the current owner’s friendship.
Look at the terms. Is there a written agreement or a handshake? What does each partner earn on a job, and does that fit the shop’s margins? How are pickups and returns handled, and who is responsible when a shoe is lost or damaged? Speak to a few partners with the seller’s help. Ask how the service is going, what customers say and whether they would continue. Your lawyer can tell you whether any written arrangement can transfer to you. Also compare the busy times: a partner who sends work at the same peak as your regular trade can strain capacity.
Key takeaways
- Ask which partners send work and how much comes from each.
- Find out whether terms are written or only understood.
- Talk to the main partners about continuing with a new owner.
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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