IMPORT – WHOLESALE - DISTRIBUTION
Stock Included: Yes
Stock Value: 45,000
Years Est: 20 years
Gross Revenue: 782,000
IMPORT – WHOLESALE - DISTRIBUTION/B>
LOCAL AND AUSTRALIA WIDE DISTRIBUTION
RAPID CUSTOMER RE-ORDER OF ESSENTIAL CONSUMER PRODUCTS
Huge 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.
BUSINESS DESCRIPTION & OPERATIONS
Although completely complementary to each other the business has three distinct sections:
SECTION 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.
SECTION 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 their business.
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 products
Adjusted Net: $172,418
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 market.
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.
Quite simply, anyone who works with steel – boilermakers, engineers, welders, steel fabricators, mining companies – needs products like this business distributes which have only been partially exploited.
The 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
CLIENT COMMUNICATION OF ORDERS
Phone: 90 percent
Fax: 5 percent
Email: 5 percent
Stock is sourced from a number of suppliers.
It imports 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 have” product.
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.
BUSINESS 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 across Australia.
üAssociated administration (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.
BUSINESS TRADING HOURS
Monday – Friday: 8:00 am till 4:00 pm
To date this business has used very little marketing. There are opportunities to promote the business in the Yellow Pages and industry magazines.
PARTICULARS OF PREMISES
The building is built from concrete and consists of an office and warehouse. It is in excellent condition and is situated on land zoned industrial.
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 .
The 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.
KEY FEATURES OVER OTHER BUSINESSES
"The above purchase price represents excellent value….
…. when comparing the features of this business with other businesses"
üONE STAFF MEMBER
üLOW OVERHEADS - LOW RENT
ü5 DAY WEEK
üHIGH 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.
üEXCELLENT SUPPORT FROM SUPPLIERS: NO TECHNICAL SKILLS NEEDED
üLONG ESTABLISHED, DIVERSE, REPEAT CLIENT BASE
This 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.
üMINIMAL SELLING REQUIRED
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.
This 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.
üONLY 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 PASSING TRADE
Indicating a huge potential exists to expand the business further.
üPROFITS 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 business:
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.
üDevelopment and 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.
So 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 STAFF.
These are the key features that are on every buyer and accountants “WISH LIST”, so Act Now register your Interest by clicking on “email me below” to avoid disappointment.
DETAILED BUSINESS REPORT NEARING FINALISATION.
Phone: (08) 9429 8882
Mobile: 0413 626 633
Email :” firstname.lastname@example.org