IMPORT – WHOLESALE - DISTRIBUTION
Stock Included: Yes
Stock Value: 45,000
Years Est: 20 years
Gross Revenue: 782,000
– WHOLESALE - DISTRIBUTION/B>
LOCAL AND AUSTRALIA WIDE DISTRIBUTION
CUSTOMER RE-ORDER OF ESSENTIAL CONSUMER PRODUCTS
Potential – Massive Market Available
Current Status: Hardly Scratched The surface
ARE YOU READY TO MAKE A FORTUNE!
This completely integrated business is a one-of-a-kind
Perth based business.
It’ll be hard to go wrong when you’re supplying two of Australia’s
largest and fastest-growing industries which makes this one of the most stable
and recession-proof businesses
possible. But because it currently
deals with only a relatively small section of those markets, it’s also a
business with enormous potential.
DESCRIPTION & OPERATIONS
completely complementary to each other the business has three distinct
1. - - Is a wholesale business
which imports some of its own product and acts as an exclusive agent in the Western
Australian market for others. It
primarily services two sectors: wholesale hardware Australia-wide and a
lucrative essential sector of the metal fabrication industry in Western Australia.
2. This side of the business
operates on approved exclusive distributor arrangements from international
companies who also offer comprehensive support, meaning very little in-depth
knowledge is required by the owner. Although the business has nowhere
covered the market, this section of the operations supplies a range of products
to a fast re-order consumable to an essential market sector linked to a wide
and variable range of metal manufacturers .
SECTION 3 This section of the business has sole
distribution to range of products that compliments section 2 and provides long
term security for clients as a customer can rely not only comprehensive support
from major supply companies but a one stop shop approach for key products for
The metal surface technologies industry is a
changing market and with the exclusive distribution rights for these products
and the support provided international and national organisations it’s no
wonder this business has a 98% per
cent repeat order client base.
üMining Equipment Fabricators.
üSecurity Product Manufacturers
üCaravan Part Manufacturers
üStreet Sign Manufacturers’
üAppliances Parts Fabricators
üAutomotive Part Manufacturers
üSporting Product Fabricators
üShop Fitting Companies
üCommercial Furniture Manufacturers
üFence And Gate Manufacturers…
… many more
Asking Price: $440,000 plus a small stock of $45,000
With such a wide
cross section of market sectors, it’s
no wonder this business has stood the test of time, no
matter what the economic market conditions. It
also signals a massive potential for a keen owner to take advantage of the
enormous potential available to boost profitability by further expanding the
existing loyal customer base linked to the above markets.
Meanwhile Australian metal industry consumes approximately 7.5 million tonnes
of finished product which a large percentage will require products like this
business supplies. But the business has another line of consumable products
that it imports from overseas that is a requirement for virtually every
metal manufacturing workshop. In fact most metal workshops would tell you this
is a “must have” product that they have no choice but to buy.
Carrying a wide variety of products not only
reduces risk, but also gives the business numerous opportunities to up-sell a
customer who may approach the company for one product, but may be interested in
some of the other product lines, and means it remains uppermost in customers’
minds when they need unusual requests for products.
The industry which this market supplies is increasingly in
demand from a huge variety of clients. The potential
market is enormous:
virtually any business producing anything with metal are a potential target
There is also the potential
to introduce the product to more markets, especially other fencing
manufacturers and the mining industry, where it has products performing far
better than the opposition product.
simply, anyone who works with steel –
boilermakers, engineers, welders, steel fabricators, mining companies – needs
products like this business distributes which have only been partially
business has built up a substantial customer list of some 195 repeat order clients which is only a
fraction of the market place. A high proportion of those order
fortnightly while the remainder order weekly.
CUSTOMER DEMOGRAPHICS as a
percentage of sales
Metropolitan area: 95 percent
Country area: 5 percent
COMMUNICATION OF ORDERS
Fax: 5 percent
Email: 5 percent
is sourced from a number of suppliers.
direct in container form
from overseas a range of high end, fast
re-order factory consumable
products, while another range of complementary metal fabrication consumables and
chemicals are supplied by an agency
agreement with international
companies based in the eastern states. Smaller stock lines are sourced from
wholesalers in WA and Queensland
(these are an exclusive supply arrangement).
The main core products have a 10 year warranty back up direct
from the supplier which makes it the preferred option for a growing number of
end-users and thus a “must
As mentioned the business direct imports products in
containers, which is the acknowledged leader in terms of quality, and supplies
it, through a network of major distributors, to the steel fabricating industry.
As a result of its reputation for supplying superior quality
products, the business has been steadily profitable for its entire existence
since it was founded over 40 years
ago, offering a new owner
much-sought-after stability in an uncertain economic environment. It has a long-standing client base consisting
of some of the country’s largest wholesalers, and offers enormous potential to
grow sales if the new owner so desires.
ESTABLISHMENT & HISTORY
The business began trading in
1967 and was bought by the current owner in 2004.
The business in its current form is the result of a
merger of two businesses. The first was primarily the
import and sale of lucrative high volume workshop consumable products and its
sale across Australia. The second is a combination of agencies supplying,
chemicals and complementary consumable products to the metal industry in Perth. Under the present
ownership the two entities have successfully merged together and have operated
from a warehouse since 2006.
The day to day running of the business includes but
is not limited to:
üDistribution of consumables,
chemicals and associated products throughout Western Australia.
üPackaging and distribution of a
vital range of imported, consumable, fast re-order products to wholesalers
(invoicing, stock control, etc.) of the business.
This work is easily undertaken solely by the
owner/operator, usually in the course of a five day week.
Monday – Friday: 8:00 am till
To date this business has used
very little marketing. There are opportunities to promote the business in the
Yellow Pages and industry magazines.
The building is built from concrete and consists of an office and
warehouse. It is in excellent condition and is situated on land zoned
There is sufficient storage and work area for
further expansion if desired. Customer parking and access for delivery trucks
and other heavy vehicles is .
The premises signage, which is .
size of the premises is 220 sq/mtrs
Monthly rent is $1,400
Because the business is not reliant on passing
trade the operations could easily be relocated closer to the new owners
residence if required.
FEATURES OVER OTHER BUSINESSES
"The above purchase price represents
…. when comparing the
features of this business with other businesses"
- LOW RENT
ü5 DAY WEEK
GROSS PROFIT MARGIN
The products supplied by Hi-Light Marking
Supplies are acknowledged by distributors and end-users as superior to anything
else on the market.
SUPPORT FROM SUPPLIERS: NO TECHNICAL SKILLS NEEDED
ESTABLISHED, DIVERSE, REPEAT CLIENT BASE
business supplies to industries that are stable and well-established. This widespread
client base (some dating back 40 years) which insulates the business from economic
downturns, reflects a lower than normal risk factor.
The vast majority of sales are simply self
propelled by mandatory re-orders.
üPROFIT BASED ON
ONE OWNER / OPERATOR
Low overheads and maximum flexibility
further contribute to the security of this business.
is a business which has “coasted”, with no real marketing strategy, minimal
advertising and no sales effort beyond the owner collecting and delivering
orders from regular clients. Although profitable at this level it is servicing
only a small portion of the total potential market.
APPROXIMATELY $45,000 STOCK
This amount of stock is considered minimal.
Most other businesses will carry much higher values than this, which will
demand higher working capital requirements and unnecessary money tied up
during the term of ownership.
All sales are on 30 day terms but suppliers
are on 60 days or better. This provides the business with an excellent cash
flow, which minimises working capital.
üNOT RELIANT ON
Indicating a huge potential exists to expand
the business further.
CAN BE PROVEN 100%
The vendor has identified the
following strategies which, if implemented by the new owner, offer the
potential to increase the turnover and / or profit of the
üAdvertising and promotion.
Sales would potentially increase
if the business increased advertising expenditure on specific marketing to
potential client base through fliers focused on promotions and special deals
from key suppliers.
Since the majority of the client
base is located in the metropolitan area the business could further develop
country area sales. There are enormous opportunities in the country.
üExtended product range.
New products could be introduced
which would complement the existing product range, such as consumables
– for example hand cleaners, tack rags etc.
üProduct brochure price list.
The business hasn’t provided a
product brochure and price list detailing all products.
implementation of a marketing strategy.
Due to time limitations the
current owner has neglected this area and let the business run “as is” and
hence its potential is by no means realised. The current owner, due to his
other business interests, has not devoted enough time to this activity.
there you have it
– it couldn’t get any easier – Exclusive
Agencies – 5 Day Week – Essential Repeat Oder Clients – Low Stock – Huge Potential To
Expand and last but not least NO
These are the key features that are on every buyer and
so Act Now register your Interest by clicking
on “email me below” to avoid disappointment.
DETAILED BUSINESS REPORT NEARING FINALISATION.
(08) 9429 8882
0413 626 633