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SOLD - SOLD - SOLD - SOLD
IN 7 DAYS
ANOTHER WANTED FOR CASH APPROVED BUYER
COFFEE IMPORT - WHOLESALE
AUSTRALIA WIDE RIGHTS
ANOTHER WANTED - BUYER WAITING!
WEALTH BUILDER!
SOLE AGENCY
IMPORT
WHOLESALE
With Rapid Customer Repeat Orders
It doesn’t Get better Than This!
EXCELLENT MANAGEMENT BUSINESS
Buy this high growth enterprise and you’ll be joining the ranks of a few elite number of business owners who wholesale what most people would believe to be…
…“one of the highest volume consumer products on earth.”
In fact it’s estimated that 2/3rds of the Australian Population are end users of this product who keep on buying, no matter what the economic climate. The mere fact that sales have grown by some $200,000 in the recent economic downturn is absolute proof that this business is ideally positioned for a new owner to increase profits to a new all time high with improving market conditions.
Established eight years ago the business has seen sales almost double in the past four years as it achieved what most businesses can only dream about - an enviable Gross Profit margin of 50 to 60 percent.
Based to date on a simple import-repackage-distribute operation, the business has recently entered an expansionary phase, importing specialised automatic machinery which will enable it to service even a larger share of the market.
You’ll sleep easy knowing the business has exclusive sole agency status for many of its products as well as its own brand name products that are poised for expansion interstate.
The 2009 Profit is considered by the vendor to be conservative due to the following clients and products not being reflected in the full 12 month profit and loss accounts…
üThe company established itself, approximately eight months ago, as a supplier of privately branded products to the shipping, navy and mining industry.
üAlso approximately eight months ago it expanded its operations into Queensland, wholesaling and distributing products. There is significant potential for future expansion if a new owner were to appoint additional distributors.
üAs well as many local new customers giving their approval to commence trading, a new customer in New South Wales has given approval to commence trading.
üEconomies of scale through business expansion also offers a means by which the Gross Profit margin can be further increased: for instance the business changed one of its local suppliers during last year and is now buying direct from China – a saving of approximately $30,000 to $35,000 a year, or 50 percent.
The easy systematised processes and a simple business model mean every day at the business is more or less pre-planned in terms of deliveries and customer servicing tasks, with the low number of staff easily able to meet the demand for packing and distributing products.
The three administration and management staff (including the working owner) handle the organising orders and deliveries. Another full time staff member is employed to carry out most of the deliveries to be done each day.
UNTAPPED CLIENT BASE
Despite its solid record of success and steadily increasing sales, the market for this businesses products and services is by no means saturated. To date the business has directed most of its efforts to targeted market sectors, but the vendor estimates that it has captured only perhaps 10 percent of the WA market.
Most obviously, there is a vast market for this business outside of WA. While the business has started making some inroads in interstate markets there is still a great deal of expansion potential.
CUSTOMERS
As can be seen from the figures below, the market is extraordinarily widespread and no one client represents a substantial proportion of total sales. Major customers, and the percentage of sales for which they are responsible, are as follows:
Customer A - 6 % of sales
Customer B - 6 % of sales
Customer C - 5 % of sales
Customer D - 5 % of sales
Customer E - 5 % of sales
Customer F - 5 % of sales
Customer G - 5 % of sales
Customer H - 5 % of sales
Customer I - 5 % of sales
Customer J - 5 % of sales
CLIENT COMMUNICATION OF ORDERS
Automatically (“standing orders”) 3 percent
Phone: 90 percent
Fax: 1 percent
Through sales staff: 4 percent
Email: 2 percent
OWNER’S DUTIES
Whilst the present owner works in the business for 40 hours a week, it is very much a relaxed position that takes an overview of the business and ensures that things run smoothly rather than a “hands on” role.
The business is not particularly technical, and the present owner admits to no depth of technical knowledge even though he founded the business.
STAFF LEVELS
The business employs five full time staff and has an average weekly wages bill of only $2,900 netStaff Analysis
BUSINESS OPERATING HOURS
Monday – Friday: 8:30 am till 5:00 pm
DEBTORS AND CREDITORS
Accounts Receivable details
Cash sales: 20% of monthly sales
30 day trading terms: 80% of monthly sales
Accounts Payable details
Cash sales: 5 of monthly sales
30 day trading terms: 90% of monthly sales
60 days and over terms: 5% of monthly sales
PARTICULARS OF BUSINESS PREMISES
The business operates from extremely modern premises which was built in 2009.
The premises include a showroom and warehouse. It is in excellent condition and features reverse cycle air-conditioning on upper and lower levels, tinted windows with blinds, a disabled toilet, an alarm system and a video camera security system.
Customer parking and access for delivery trucks and other heavy vehicles is excellent – a high roller door allows a truck carrying a container to drive inside the building.
The premises have excellent signage.
Total Area: 645m2
Monthly rent: $6,000 + GST
Lease commenced: August 2009
Lease expires: July 2014
Option to renew: 5 + 5 + 5
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