Bumper Reconditioning Business Ready For Expansion For Sale

Business description

Business Description Summary:

This business was established in 1985 and has been owned by the current owners since 2000. They have now decided to move on and are putting the business, which they have built into a stable and self-generating operation, on the market.

Operations:

The business operates on week days from 7.30 a.m. to 4.30 p.m. and the occasional Saturday morning for tidying up. The business is well established west of Melbourne CBD and is central to its client base of Ballarat, Geelong and the Western Suburbs. The township has three freeway access points and has affordable housing, plenty of public transport and good schooling options for those wishing to relocate.

The business could easily be re-located closer to the City if the new owner wishes to do so, without causing any problems.

Staff is entirely made up of the owners, a husband and wife combination and is more than adequate for current levels of activity, but there are facilities to accommodate up to four workers. Although experience in panel beating would be an advantage, it is NOT a necessity as the owners are willing to stay on for an agreed amount of time for training purposes.

Over the years, the business has built up a large stock of bumper bars for all popular models of cars. These are obtained from panel shops, wrecking yards and on ebay. More recently, the business has been purchasing less stock, as it is felt that current levels are high enough.

The business operates as an exchange program. Reconditioned bumpers are supplied to customers in exchange for the damaged bumper from their car. These are later plastic welded and reconditioned for resale. This system ensures that stock remains available and is an exceptionally cheap source of procurement resulting in healthy profit margins. The process of reconditioning is inexpensive, and after processing, bumpers are in virtually new condition.

All customers are supplied with a price book which has detailed pricing and description of all available bumpers. Most sales are to panel shops that do the final finish, relieving the business of the problems of colour matching.

In past years a public sales policy was adopted and was extremely popular and profitable. However, the owners discontinued this as a lifestyle choice. The business no longer sells direct to the public and does not advertise owing to adequate sales levels from existing clients. Methods of increasing sales would be an active website and a proactive selling campaign, and the owners believe that anybody adopting these principles would see an increase in sales of at least 100% to 200%. There are endless opportunities for growth within the business if desired.

The business is housed in a clean, unobstructed warehouse with a large outdoor area for the orderly storage of stock. The premises has an office, a lunchroom, a spray booth which is fully ventilated, a heating oven and a spacious working area.

Rental is $300 per week and the premises are occupied on two months notice either way. The landlord is extremely flexible and easy to deal with.

Stock:

The business has built up a large stock of bumpers over the years and protects this stock by operating a strict exchange policy. The stock therefore represents a very valuable “hidden” asset as the new owner will be acquiring stock with a theoretical sales value of around $750 000.

All stock is for current model vehicles, with redundant stock being discarded.

Plant/Equipment / Fittings:

Plant and Equipment is valued at about $20,000 and there is also a 2002 Mazda E1800 van for deliveries, on which an amount of approximately $8,000 is owing.

Property information

Real Estate:

Lease

Lease terms:

A new lease can be negotiated if required

Other information

Expansion potential:

Huge

Trading hours:

5 Day Week

Furniture / Fixtures value:

$20,000

Inventory / Stock value:

$200,000

Contact the seller