A VIRTUAL MONOPOLY Ref No. GN9895D

Business Summary

Net Profit: $156,946
Price: Price $370,000 Plus Low Stock of $45,000
Industry: Manufacturing, Retail, Service

UNCOMPLICATED AND STRAIGHT FORWARD :: Supplying essential products and maintenance services to a long-established customer base couldn’t be easier because every one of this business’s large 700 repeat order customer base understands they must continue to spend a lot of money to repair, maintain and eventually replace worn-out high usage products. And with this business being the only one of its type in town, it’s hard to imagine how anyone can go wrong!  :::::: That also means extreme low risk, as customers are a captive market fortifying sales and profits like no other business. :::  Indeed, selling to that market would be the ideal for a business, but this business goes one better – it has a monopoly in this growing South West national and international destination tourist town - a situation that will carry on into the foreseeable future as the Southwest’s rapid population growth and popularity as a tourist destination continues.


 

Key Features

  • Incredibly easy to learn and manage
  • No Stress - Sales demand is simply self-propelled
  • The current owners had no prior experience - and neither will you
  • High Gross Profit margin - 67 percent
  • Historical, ongoing growth - Refuses to stop growing
  • Essential, “must have” products and services
  • Tax-deductible national and international travel at your option
  • Low risk – key customer retention features
  • Huge customer list total approximately 700 clients
  • Proven to be recession proof
  • Unstoppable Repeat order customer base widely spread
  • IN A NUTSHELL - It’s like no other business

Business Overview

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A VIRTUAL MONOPOLY


A VIRTUAL MONOPOLY

ESSENTIAL  -  REPLACEMENT -  PRODUCTS
& SERVICE DISTRIBUTOR

 
NO EXPERIENCE NECESSARY

 

PRESTIGIOUS
SOUTH-WEST COASTAL  ::: TOWNSHIP LOCATION
A Short Drive From Perth

 
ACCELERATING SALES – is only part of this 8-year success story!

No matter what the economic climate, this business just keeps on growing. This high-profit business is directly aligned to an industry which is increasing in demand from a huge variety of clients. It is well known to be one of the most stable high growth market sectors where sales are self-propelled without any sales force or high advertising budgets.

 

ONE BUSINESS…

MULTIPLE ROBUST REVENUE STREAMS

 
But what makes this business stand head and shoulders above the rest?

ANSWER - These are the things you’ll love about this business…

 
  • Incredibly easy to learn and manage

  • No Stress - Sales demand is simply self-propelled

  • The current owners had no prior experience - and neither will you

  • High Gross Profit margin - 67 percent

  • Historical, ongoing growth -  Refuses to stop growing

  • Essential, “must have” products and  services          

  • Tax-deductible national and international travel at your option

  • Low risk – key customer retention features

  • Huge customer list total approximately 700 clients

  • Minor Advertising required to generate sales

  • Unstoppable Repeat order customer base widely spread

  • Monopoly in the marketplace - there is no other local company in the township doing the same.

  • Proven to be recession proof

  • Customer retention features is what every Buyer wants, but rarely gets

  • IN A NUTSHELL  - It’s like no other business

 

UNCOMPLICATED AND STRAIGHT FORWARD

Supplying essential products and maintenance services to a long-established customer base couldn’t be easier because every one of this business’s large 700 repeat order customer base understands they must continue to spend a lot of money to repair, maintain and eventually replace worn-out high usage products. And with this business being the only one of its type in town, it’s hard to imagine how anyone can go wrong!
 
That also means extreme low risk, as customers are a captive market fortifying sales and profits like no other business.
 
Indeed, selling to that market would be the ideal for a business, but this business goes one better – it has a monopoly in this growing South West national and international destination tourist town - a situation that will carry on into the foreseeable future as the Southwest’s rapid population growth and popularity as a tourist destination continues.
 

And If Loving Every Minute, You Spend In This Business Isn’t Enough…
…You’ll Also Love The Lifestyle You Get To Enjoy Outside Of Business Hours!!!

Situated a short drive from Perth, owning this business means you’ll get to live the southwest coastal resort lifestyle, that most people experience for only a few weeks of the year, EVERY SINGLE DAY!!!
 

Key Low-Risk Features


 A wide range of products to a growing client base

The supply of such replacement products in the southwest is a lucrative growing niche market. In fact, many customers are compelled not only by a duty of care but also by law. This means many customers are forced to purchase through fear which reinforces sales far beyond any other business.

Award Winner

Winning prestigious business awards both on a state and national level, independently confirms this is a business self-propelled by demand
 

High Gross Profit margin

Self-propelled sales and a current high gross profit margin of 67 percent is indicative of a business which is both solid and in a strong growth phase.              
 


Historical, ongoing net profit growth, no matter what the state of the economy

Despite the economic downturn, sales and profits have continued to increase without a dedicated sales force or an aggressive marketing plan, and on this basis, present owners believe the net profit of $156,946 is ripe for expansion.
 

Essential products         

Once a product has been purchased, it requires ongoing replacements and maintenance which not only secures the customer's long-term loyalty but also self-propels sales like no other business.
 

Widespread growing repeat client base

The current 700 strong, active customer base, continues to grow without any marketing plan in place. The buyer should also take comfort in knowing the business has no one customer representing more than approximately four percent of annual sales. This has been a deliberate policy employed by the owners to render the business less susceptible to major sales downturns resulting from the loss of a major customer.


 

Low risk – key customer retention features

The business holds extensive records of a customer’s purchases and maintenance history which serves as a deterrent to stop customers shopping elsewhere. 
 

Long established

The business has been servicing the town and surrounding areas market for around eight years, and during most of that time, the demand for its products and services has grown with very little sales or marketing effort.
 

Low staff of only 4

For the new owner, the operations are very easy to learn, and there has never been a problem to source new staff when required.
 

No reliance on sales staff

The vast majority of sales are simply refill-orders, which means that the current owners do not have to spend time canvassing for clients or using company funds to advertise.
 

No experience necessary

As previously mentioned, the business is extremely simple to operate and can easily accommodate flexible working hours for the new owners. The daily activities of the owner are self-driven and while the level of effort and number of hours worked do have a direct result on growth, the ongoing contracted passive revenue stream from the business’s maintenance division continues regardless.
 

Low competition - monopoly in the marketplace

As previously stated, the business is in the fortunate position it faces virtually no local township competition.
 

Current year to date sales are up by 13%

Although the vast majority of businesses cannot boast increasing sales in the current economic climate, a strong recession proof business such as this does it on a regular basis.

Owner can take holidays

The owners took four weeks overseas holiday in Barcelona last year and during this time staff completely ran the business.
 

Minor overheads

Given the size of the annual turnover, overheads are relatively small, and with new developments to hand, they are likely to reduce even further.
 

Long established repeat client base and supplier list

The business has a long-established repeat client base and long-term supplier relationships that offer excellent stability and low risk for the new owner.


Low average stock holding of approximately $45,000

Reduces the need for high working capital
 

Tax-deductible travel opportunities like no other business!

The owners have the opportunities to visit interstate and even international destinations with annual group conferences planned by their main supplier. As well as being invaluable in terms of learning and networking, there’s also the opportunity to extend these trips into annual holidays.
 

No bad debts

The owners have never incurred bad debts  
 

Profits can be proven

The business has a complete set of verified accounts which clearly demonstrate its profitability.
 

Fast payment of accounts

Approximately 25% of customers pay on COD basis with the balance paying in 7 to 30 days.
Key feature: Also, many customers are on a credit card list which means the staff takes the payment automatically for the last month's invoices on the 7th of the month.
 

Professional, modern premises

The business offers a superb location with excellent high traffic flow exposure. Meanwhile, the high profile modern layout of the commercial/industrial premises projects a professional image for many customers who regularly visit the premises to collect products.
 

Best is yet to come!

The business does not rely solely on third-party growth and natural market expansion to grow its revenues – there are numerous additional product lines and services which could be offered; all of which provide the new Buyer with immediate potential to substantially increase sales and profits. As previously stated, the current owners have never actively advertised which is one of the easiest avenues to increase profitability.
Revenue has never slowed down at any time during the eight years of operation, as customers have little option but to continue purchasing products to prevent early replacement of their initial purchase of expensive high use products.
 

No Experience required

Its owners have spent years perfecting easy to learn systems so that no experience is necessary for anyone to walk in and take over. It is important to note; the current owners had no prior industry experience before purchasing the business. The vendors are also offering a generous post-settlement handover training period during which full training will be given.
 
The business is an easy business to operate because it’s clean, systematic, simplistic and fun to operate.
 

Ideally situated in the fast-growing southwest

With the Southwest’s on-going population growth and tourist numbers increasing, it would be reasonable to expect significant increases in this business’s future profit to meet the extra demand for its replacement products.
 
Billions of dollars of projects are either underway or planned for the region including expansion of the Busselton-Margaret River Regional Airport.  The southwest is already the most populated region in Western Australia outside the Perth metropolitan area. Currently, more than 177,369 people are residents of the region. By 2026, 230,000 people are expected to live there. And by 2050, it is possible that as many as 500,000 could call the southwest home. (source – SWDC Annual Report 2016/17)

 

 
High security and unrivaled growth potential

The list of customers has grown from year to year, with no one customer representing more than approximately 4% of annual sales. With no other competitor in town, this business is ideally positioned to capture many more customers by simply deploying a marketing plan.

 

It is a fact; to date - growth has been mostly driven by increasing south-west population and word of mouth referrals from satisfied customers.

 

On top of all that, the financial accounts reflect a huge 67% Gross Profit margin. Such high margins are rarely found in other businesses, which makes this business an exceptionally low-risk investment for the future.

 

MAKE NO MISTAKE

THIS IS A BUSINESS YOU'LL KEEP FOREVER…

… BUT YOU NEED TO ACT NOW TO SECURE IT!!!

 

We have done most of the homework for you which is detailed in our 100-page business report. 


REPORT IS NEARING COMPLETION - Please register your interest now by clicking on the “email me” link at the top right-hand corner of the screen, and we will notify you when the report is ready to collect.

 
 

Financial Analysis

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The present owners believe the net profit of $156,946 is conservative. It is a fact - growth has been mostly driven by increasing south west population, a hotter climate and word of mouth referrals from satisfied customers.

Listing Brokers

Graham Nankivell

Graham Nankivell

Graham was the original founder of Performance Business Sales and is one of W.A.'s most experienced Brokers.