Advice on buying a new studio.

[Jimmyz]

I am in the process of buying a studio in another state with an existing client base and at the same time selling my studio with an existing client base.
Has anyone gone through this process and could you offer advice?
My studio is doing very well but the other studio has so much more to offer like fantastic location, custom designed studio with window light and amazing outdoor locations.
All I literally have to do is walk in with my camera and I am ready to shoot!
Everything is included in the final selling price Lights, backdrops furniture and its all top notch props and backdrops. Owner is retiring.
The new studio is near $500,000 My current studio I hope to get $350.000.
I am concerned with the customer transition. This studios prices are much lower then mine and I am unsure if I should just walk in with new prices and items to sell or transition slowly.
I am thinking of having 2 price lists one for current clients as a courtesy and another for new clients.
Any advice from experienced studio owners would be welcomed.
JimmyZ

[kgphoto]

Jimmy,

I am going to guess that since you arrived at a price for your studio and are comfortable with his price, you have really analyzed the value of what you are buying. Is the cost of living cheaper where you are going? Does this new studio do more volume? Why? Are you going to be able to keep up the volume?

What contracts are in place to secure work as well as what liabilities, ie advertising and school service agreements? Has the income been realized and the only thing left is providing the service, which may put you in a time and cash crunch?

Charging what the market will bear is a big point. The market may well handle the price increase, or it may not. Will he show you his Schedule C or P&L for the last three years so you can see what the averages are and any trends?