Essential Products And Services Business For Sale

PROFITS: $254,5604 - SALE PRICE $550,000

This Essential Products and Services Business for Sale has been trading profitably for around 36 years and will continue for many more years.

The owner established his first business outlet in 1988 and then another in 2000. These have continued to develop and grow within their established locations across the Perth metropolitan area.

After 36 years, the owner is looking to retire and for a new owner to develop and grow the Business further.

The Business has competent long-term staff and managers at each centre.

The Business enjoys an excellent cash flow as most customers are retail and thus pay cash, with around 15% trade, providing a steady base of virtually guaranteed repeat business. In addition, it has long-term relationships with many business customers in various industries, including automotive sales and service, engineering and agriculture.

36 years established
Owner retiring
Competent long-term staff in place
Withstood economic cycles
85% of clients pay COD
The broad and diverse client base
Experience team with long-term staff
Two separate locations across Perth Metro
Essential services
Low competition
Great reputation
Barriers to Market Entry
High assets mix

PROVEN HISTORY
The Business has been trading for 36 years with proven solid results and will continue to do so for many more.

STRONG CASH FLOW
The Business enjoys an excellent cash flow as most customers are retail and thus pay cash, with around 15% trade, providing a steady base of virtually guaranteed repeat business. In addition, it has long-term relationships with many business customers in various industries, including automotive sales and service, engineering and agriculture.

LOW RISK
The Essential Products and Services Business for Sale invoices around 40 clients daily, of which about 10 have never used the business services before. Most customers are consumer/retail, with approximately 15% of sales trade-related. As a result, the Business has a broad spread of consumer and commercial customers, with no one client representing a high proportion of sales.

LOW ADVERTISING
The Business is fortunate to need no aggressive marketing plan or sales force to generate sales. Instead, the company relies on its long-standing reputation for quality and reliable service, which translates to repeat Business, excellent Google reviews and word-of-mouth referrals from satisfied customers to maintain its market leader status.

POSITIVE CASH FLOW
With 85% of sales paid in cash and suppliers providing up to 60-day terms, cash flow is excellent, and thus there’s little need for working capital.

STOOD THE TEST OF TIME
The Business has continued to grow over the 36 years, with increases in sales and gross profits from inception despite the 90s recession, the GFC and the pandemic. Over the past four years, sales have grown year-on-year, with a return of solid growth over the past two years.

LOYAL CUSTOMERS
Some customer relationships go back 20 or even 35 years. Customers know the Business has specialist knowledge, often unavailable from most vehicle retail and service shops.

EXPERIENCED, LOYAL STAFF
This Essential Products and Services Business for Sale is remarkable for the loyalty and longevity of its multi-skilled and highly experienced staff, many of whom have worked in the Business for over 15 years.

NO RELIANCE ON SALES STAFF
Most sales are self-propelled, which means that the current owner does not have to spend time canvassing for clients or using company funds as advertising expenditure. However, it also puts the new owner in the enviable position of having at hand a means by which demand could almost certainly increase.

PROVEN PROFITS
The Business has a complete set of verified accounts that clearly show its profitability.

HIGH ASSET MIX IN THE PURCHASE PRICE
Tangible stock and equipment represent 66% of the purchase price. Therefore, it presents a lower risk and potentially delivers a higher bottom-line profit by minimising tax through claiming depreciation.