Re: Account worth

[Nomen Nescio <nobody@xxxxxxxxx>]

>One other risk to both buyer and seller is the tendency for the buyer
>to want to raise prices up to his levels from the levels that the
>sellers accounts are at. This is a recipe for disaster.The buyer paid
>a price based on the original monthly rate and should honour this rate
>at least for the first while. One large buyer bumped the rates and
>lost 80% of the accounts he bought (and these accounts were under long
>term contract). So the seller has to find out in advance how the buyer
>is going to handle this transition period of a year or two since this
>will affect what he ends up getting paid

The proper way to handle this is to write into the purchase contract that
if a customer cancels during the guarantee period due to a rate increase by
the buyer, the seller still gets paid the full price for the account.  This
is only fair, since the seller has no control over whether the buyer
decides to raise the rates, and shouldn't be punished for his inability to
foretell the future.  Alternatively, the contract might contain the
seller's promise to keep the rates unchanged until the guarantee period
expires.

This should cover not only the monthly monitoring, but also the labor
rates.  It doesn't help if the monitoring stays the same and the labor
rates triple.