Its Simple - Manufacture, Install & Bank The Profits!

Business For Sale Bunbury, Western Australia 6230

Business Category Engineering Manufacturer Import Product Manufacturer Security

* Solid year-in-year-out profits * Raw materials imported directly from suppliers * The low staff of three * Low stock holding * Low working capital requirements * No marketing to drive sales * Well...

$440,000

Description

Its Simple - Manufacture, Install & Bank The Profits!

ESSENTIAL SECURITY & PRIVACY PRODUCTS

When security and privacy are top-of-mind, this business ticks all the boxes. Our products are imported, fabricated, and installed to a wide customer base.

Self-propelled sales and a high gross profit margin of 68% is indicative of a business that is both solid and in a strong growth phase.

The growing population in the region will require the continued building of houses, infrastructure, and facilities to accommodate it, such as schools, sports facilities, community centres, hospitals etc., and all these new buildings will require these products of some description.

The Growing List of customers currently numbers approximately 400 with no one customer representing more than approximately 10% 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.

This simple-to-operate business was established in November 2006 by the current owners who came from a farming background. The business has gradually grown over the past 16 years and is well-positioned to maintain that growth trend.

We took the liberty to import our raw materials from overseas suppliers ensuring quality control and an increased gross margin on finished products. We pride ourselves on the supply of high-quality product installations.

Over time, the variety of product styles has changed significantly, so each project is treated individually with the majority of finished products are made to a specific requirement.

It is rare that a business captures margin at most points of the supply chain. Our large range of materials is sourced mostly direct from overseas factories so we don’t have the middle-man or wholesalers’ costs to be added.

Over recent years there has been very limited marketing which has not affected demand for our products with sales and profits continuing to grow.

With additional marketing through digital platforms, television and radio advertising, and email database marketing, we believe and do not doubt that sales would increase significantly.

As the owners have reached their retirement age, they have not gone out looking for new business, however, sales could increase significantly, simply by tendering for jobs that are not currently undertaken. With our overseas contacts, we can easily bring in new product designs under our business as the name isn’t directly linked to a specific brand.

Bulk buying power from our overseas suppliers allows us to be more competitive by importing full container loads.

State-of-the-art equipment and materials from our overseas suppliers ensure we are well up with the latest styles and materials.

The location is close to customers for convenience. The business is located in the main retail industrial area on one of the major roads, allowing easy access and exposure.

Intellectual property relating to some customers remains with the business, as we hold their designs on file meaning reordering is easier and it’s less costly to have to redesign.

With a long trading history with our suppliers, we have developed very important relationships with our trading partners since our establishment

We pride ourselves on quality of service and customers refer others to the business and return to it over the years.

Our proven construction and installation reliability allow us to schedule all jobs and we adhere to a strict calendar whenever possible (sometimes the weather has an impact) so our customers can be rest assured that we complete our work in good time.

Barriers To Market Entry

Aside from the significant capital requirements to establish a business such as this, a newcomer to the market hoping to compete with this business would face the following issues…

* Develop a strong brand and reputation
* Sourcing high-quality materials from overseas suppliers
* High-exposure premises

Similar Businesses For Sale


This business is somewhat unique and has no similar competition in this region, category or price bracket.


Contact Seller
Glenn McTaggart

Bsale ID: 581030
Broker REF: 0123456

Performance Business Sales Pty Ltd
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