WHAT MORE COULD YOU WANT. ESSENTIAL PRODUCTS. REPEAT CUSTOMERS & 78% GP

Home > Buy a Business > Manufacturing > WHAT MORE COULD YOU WANT. ESSENTIAL PRODUCTS. REPEAT CUSTOMERS & 78% GP

seal approved PBS

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NET PROFIT
$265,000 pa

money ico

PRICE
$640,000

stock ico

STOCK
$50,000

location ico

LOCATION
Mandurah

reference ico

REF NO
GMC012968

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BROKER
Glenn McTaggart

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Manufacturing
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GMC012968

Key Features

  • Long established business of over 40 years
  • Large repeat customer base of over 20,000 customers
  • Over 60% of sales are cod
  • Loyal long-term, well-trained staff in place
  • Diverse income streams not relying on a single income source
  • No one customer represents more than 5% of turnover
  • No sales staff required to generate sales

WHAT MORE COULD YOU WANT? ESSENTIAL PRODUCTS. REPEAT CUSTOMERS

High Gross Profit Margin - Self-propelled sales and a high gross profit margin of 78% is indicative of a business that is both solid and in a strong growth phase.

Historical Ongoing Growth - no matter what the state of the economy - The Business has continued to record increases in sales and gross profits from inception and on this basis the owner sees no reason why this trend will not continue, especially given the fact the population in the region is expected to continue growing.

Essential Products - The growing population of the Peel region and metropolitan area will require this business's products on an ongoing basis. Replacement or repairs of the product range that the business provides are considered essential.

Widespread Growing Repeat Client Base - The Growing list of customers currently numbers approximately 20,000 with no one customer representing more than approximately 3% of the annual sales. This has been a deliberate policy employed by the vendor to make the Business less susceptible to major sales downturns resulting from a loss in a major customer. This is a key feature not often found in businesses of this calibre.

Low Risk – Key Customer Retention Features The Business has accumulated a large customer base that provides repeat business with retained job specifications.

Preferred Supplier Status -  The business is in the enviable position of being a preferred supplier to several major customers.

Long established - The business has been servicing the Peel market for some 40 years and during most of that time the demand for its products and services continues to grow. With very little sales or marketing, turnover has continued to grow year on year, purely through reputation and word of...

10 GOOD REASONS WHY YOU SHOULD BUY THIS BUSINESS

1. Long-established business of over 40 years

2. Large repeat customer base of over 20,000 customers

3. Steadily increasing turnover and profitability

4. Loyal long-term, well-trained staff in place

5. Diverse income streams not relying on a single income source

6. High GROSS PROFIT MARGIN OF 78%

7. No one customer represents more than 5% of turnover

8. Market leader in their field

9. No sales staff required to generate sales

10. Over 60% of sales are COD

The business was extremely easy to learn and manage; with procedures and staff in place, it operates easily and generates work from customer inquiries on a continual basis. It also ticked all the boxes when the current owners were looking for in a business such as:

 5-day week

 Low overheads

 High gross margin

 Essential products with automatic growth

 No sales staff

The business has thrived over the years, even through the GFC the business was increasing its sales.

The financial performance of the business is very solid and reliable.

Our customer base is very diverse, with the Peel Region being home to many different demographic of population. This creates demand for our large range of products to suit vehicles, boating, caravans, patios, and sun protection.

The total client base numbers are approximately 20,000 customers, of which repeat order clients represent approximately 30% of total sales per annum.

Word of mouth is the best way we attract customers, the business hardly advertises and with a massive customer base, they all return for our products and services.

The key to the SECURITY of this business is the diverse nature of the business not relying on any single income stream to generate turnover and profits.

This is a high cash flow business with some 60% of debtors paying COD. This provides the Business with an excellent cash flow, which minimises working capital.

Many of the services and products that the business provides are extending the lifespan of those personal protection and comfort items.

The business closes down for 2 weeks over the Xmas and New Year period and during the year the current owners take 3 to 4 extended weekends for overseas holidays.

Key Features

  • Long established business of over 40 years
  • Large repeat customer base of over 20,000 customers
  • Over 60% of sales are cod
  • Loyal long-term, well-trained staff in place
  • Diverse income streams not relying on a single income source
  • No one customer represents more than 5% of turnover
  • No sales staff required to generate sales

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