Business Sold Perth, Western Australia 6000
Business Category Food Distributors Wholesale
SOLD
Description
Immersed In… …automatic Growth Essential - Wholesale - Distribution (gn12894wc)
Mandatory <> Essential <> Products
FORTIFIED VIA - 5 ROBUST SELF-PROPELLED - INCOME STREAMS
1. EDUCATION
2. HEALTH
3. GOVERNMENT
4. AGED CARE
5. SAFETY
EASY - Pack & Go + Repeat Order + Refill Arrangement
When you buy this business, you will join the ranks of a few elite business owners who wholesale what many people believe to be one of the most required mandatory consumer products in the country.
It’s also probably no exaggeration to say that every Business Buyer dreams of owning a business in which demand for the products they’re distributing is virtually open-ended, and automatically on the increase without any aggressive marketing. In fact, the year-end 2022 financial accounts report an advertising expense of only $1,415.
Try and find another business that can match these low-risk/lifestyle key features?...
• Mandatory Products – Many Have No Choice but To Buy!
• Huge 40% Gross Profit Margin – Fortified by Demand
• Established 24-Years – Proven It Can Survive In The Worst Economic Recessions.
• No One Customer Represents a Large % Of Sales – Means Low Risk
• The Owner Takes Holidays Throughout the Year – Lifestyle Enhanced
• Genuine Reason for Sale – Owner Has Reached the Age Of Retirement
• Documented Procedures – Makes Learning and Running the Business Easy
• No Reliance on Supplier Agencies – Alternative Suppliers Reflect Low Risk
• Only Three Full-Time Employees – No Staff Hassell’s
• News Just to Hand – Creditable Government Media Reports - Exponential Future Grow
• Five Day Week Trading – Weekends Are Always Free
• Customer Refill Orders – Predictable Sales and Profits
• No Industry Experience Required – Easy to Learn
• Non-Stop, Repeat Orders from Blue Customers – Mandatory Product Purchases
• Growing CASH Sales – Low Working Capital
• Modern North of River Premises – Impressive Location
Undoubtedly, it will be another decade before you see another business as good as this.
A BUSINESS - WHERE CUSTOMERS HAVE NO CHOICE BUT TO BUY
Besides the fact that many customers have been trading with this business for well over a decade, it retains customers by retaining critical information on previous orders, suppliers, and product data that any new competitor will not have access to. In other words, it simply makes moving to another competitor costly with room for error.
Having all the product approvals in place from its blue-chip customer list, this business has been able to historically deliver product orders consistently both in terms of timing and quality, which creates a significant incentive for repeat custom and provides the company with a stable, secure client base.
A strong influence on retention decisions is that many larger customers have committed to future stock purchases.
COMPULSORY ESSENTIAL PRODUCTS DISTRIBUTION - WITHOUT EQUAL
Providing essential repeat order products that many clients have no choice but to buy is a sure-fire recipe for success.
The sale and purchase of this business’s products within this automatic growth business sector is a multi-million-dollar market in Australia – one in which it is well worth having a share of.
You’ll also sleep easy knowing this business is positioned as one of the longest established suppliers of its niche market mandatory products in WA, with a proven trading record of some 24 years.
Because it can supply such a wide range of products, the business is easily adaptable. It can adjust its output to suit the demands of its automatic increasing customer base. This business has withstood everything thrown at it – the Covid pandemic, the GFC, and changes in Governments – all have failed to put a dent in this business’s outstanding profit performance.
More importantly, customer approval processes, established suppliers and intellectual property make it hard for new competitors to enter the market.
NOT RELIANT ON AGENCIES - MAKES THIS A SAFE BUSINESS
Unlike most other wholesale businesses that rely on their continual supply of products from the agencies they represent, this business lowers risk by having multiple product choices, making it less reliant on any one supplier. They also outsource a range of products aligned to specific customers' requirements, adding another layer of security.
This means risk is significantly reduced as this business can quickly deploy a replacement supplier or manufacturer to produce its products if they choose to.
Through its established rock-solid supply and outsourced manufacturing relationships, the business has a clear competitive advantage (both in terms of price, service and quality) over many of its competitors. The owners have also identified a number of other products that can easily be sourced and incorporated into the existing range, thus adding potential to increase sales with minimal outlay and effort.
ESTABLISHED FOR OVER TWO DECADES – ONLY TWO OWNERS SINCE ITS INCEPTION
Not every business offers both enormous growth potential and the kind of stability that will see it weather good times and bad, providing its owners with peace of mind and solid, predictable profits. This is a business that has grown despite the present owners' conservative management style.
NO ONE CUSTOMER REPRESENTS A LARGE % OF SALES.
The Company has an extensive 200 diversified customer list, with no one customer recording more than 7% of the annual sales. This has been a deliberate policy designed to render the business less susceptible to business downturns arising from the loss of large clients.
Because of its long establishment (22 years), the business is fortunate to have built up a blue-chip customer list related to Age care, Education, Health, Government and many other corporate clients across a broad industry base.
EASY OWNER DUTIES
Coming from a farming background, the current owner had no previous industry experience, so the role of the working owner involves mainly management, assisting staff where necessary and oversight duties.
These tasks currently occupy the owner for around 40 hours per week.
As previously mentioned, the owner has reached retirement age, so the present staff level allows him to take extended holidays throughout the year.
Although low in numbers, the staff are incredibly loyal and capable of looking after the business when the owner is on holiday.
ONLY THREE FULL-TIME EMPLOYEES – NO STAFF HASSELL!
It’s Something Every Business Buyer Wants – But Rarely Gets.
Unlike most other businesses, the company is fortunate to employ a relatively small number of employees.
Most of the work relates to order-taking, processing, packaging and despatch, which can be easily learnt. In most cases, the staff are cross-trained in each other’s duties enabling the business to efficiently maintain orders in peak periods or cover for others in the team when necessary.
HIGH REPEAT ORDERS
Many products have short-term life and must be continually replaced, future-proofing the business.
As previously mentioned, products wholesaled by this business, in most cases, are compulsory and mandatory and are sold on the basis that the end-user has no option but to buy.
The large base of regular clients communicates flow on orders, and there is no barrier to servicing customers in the remotest areas. For this reason, it can continue to expand its client base with minimal efforts expended by the owners.
LARGE COMPONENT OF C.O.D SALES
It is rare for wholesale distributors to have customers pay for products on collection or delivery.
The key benefit here – is that the purchaser will not require large sums of working capital like most other wholesalers.
THE BEST IS YET TO COME!
News released through credible Government media reports has confirmed that this business sector is set to have a substantial surge in end-user customers for the 2022/23 financial year. On this basis, it would be reasonable for the buyer to expect a higher profit post-settlement because of this potential increase in customer activity.
THE NEW OWNER’S UNFAIR ADVANTAGE…
…Furthermore, given that the purchase price of this business has been based on the 2021/22-year profit, your return on investment has the potential to accelerate. Even better, any extra boost in profitability could pay off the purchase price faster or go toward placing the business under full management.
WHY WOULD ANYONE SELL A BUSINESS AS GOOD AS THIS?
As previously mentioned, the current owner has reached retirement age. For this reason, he has managed the business on a conservative basis which provides a great potential for THE NEW OWNER to increase profits by simply implementing a marketing plan to capture new customers.
For a new owner with the focus and energy, this business has a clear potential to increase profitability from several potential areas of expansion, which the present owner has not done due to placing lifestyle before profit.
NO BETTER LOW-RISK BUSINESS
With a 24-year history, this business is strongly positioned as one of the leading wholesalers in its niche market sectors. This is borne out by the fact that the company has established long-term relationships with many customers, resulting in a significant level of trust and goodwill.
As previously mentioned, the business is in the enviable position of operating in a mandated Industry that will provide the new owner with confidence that the target market will be consistent and grow into the foreseeable future. This gives the new business owner a great deal of confidence when making decisions about the future direction of the business.
After you read our 90-page business report, you will have no doubts that businesses like this are hard to find.
NOTE -Please note: the sale of this business is highly confidential, and as a result – no phone information will be handed out. All buyers must sign a confidentiality agreement before receiving identifying information or a copy of the business report.
Similar Businesses For Sale
Catering Food Distributors