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BUSINESS REFERENCE : IK169 / RightBiz WELL ESTABLISHED SPECIALIST KITCHEN INFORMATION AND RESOURCE WEBSITE | | | | | | Well Established Specialist Kitchen Information and Resource Website Offering great potential Confidentially offered for sale Ref No:IK169 Asking price: £3,000,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Bathroom & Kitchen Retailers | | SALE: | Agent Sale | LEASEHOLD: | £3000000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
This opportunity is a well established information and resource website founded in 1999. In 2007, the seller entered into a collaboration with a fabricator to sell work surfaces in response to requests through the website. In the first year, since March 2007, the website generated a figure in excess of £70.000 profit for the website via collaborations. The collaborations are still in existence for the new buyer. Sales generated by the popular Corian and Quartz work surface fabricator were approximately £420,000 nett of VAT.
These figures are based on a 25% turnaround of the quotes submitted and there is great room for growth in this area. A buyer may wish to continue with this collaboration and increase his or her staff involvement to raise the percentage of turnaround (i.e. in the form of sales follow up calls to close deals) rather than the reactive closure that occurs now.
The website also generates profit through the sale of Worktop Jigs and Made to Measure Tambour Doors. The seller has been approached by the Tambour Door manufacture to develop a new design which will carry the seller’s “signature” in order to boost sales. This is indicative of the good reputation of the seller within the industry and with kitchen buyers.
The website attracts approximately 900 unique visitors a day and these are kitchen buyers sourcing information regarding products or services available to them. If requested, the seller is happy to provide the web statistics to a potential buyer.
In addition to this, since conception, the website has invited applications from kitchen installers and designers that is still ongoing and currently numbers approximately 450. The seller has a collaboration with a kitchen company who wish to access the database on a 10% return on all kitchens installed and designed by fitters/designers from this database. The seller has also entered into a collaboration with this company on a 50% share on the mark up applied to successful orders that originated from a website quote request has been agreed. This arrangement is paid on invoice, monthly. Obviously this arrangement could continue on the sale of the website should both parties agree. The company that negotiations are taking place with are offering their services nationwide and are in partnership with an International Franchise Corporation.
As a measure of the status of the website in the industry, the seller has undertaken testing of a new product for a major appliance manufacturer and has published a critique on the website. There are only two other bodies (household names) who test and publish for this manufacturer.
An additional and newly developed website is included in this deal, which is a working calculator website based on already agreed prices for work surfaces in Corian, Quartz and Granite including template and installation UK wide, and will provide visitors requesting quotations with an instant price estimate. This could conceivably apply to kitchens as well as work surfaces should the buyer wish to expand the working of the website.
The seller is of the mindset that these unique business models of collaboration are the way forward in internet business and this is substantiated by the success of this model in its first year. Quote request numbers are increasing significantly.
Further property rights and specifications for an innovative new development devised by the seller could be made available for an additional fee. This could be favourably negotiated with the eventual buyer.
This sale offers a superb opportunity for an International buyer to gain a foothold in the UK as the domain names alone encompass the provision of all things kitchen related.
Growth and Expansion:
Further business could be achieved within the website by supplying products on a profit margin through the site, as is being reached already with the Worktop Jigs and Made to Measure Tambour Doors and Stainless Steel. It is clear that this element of income generation has not been exploited to its full capacity, simply because to date the business has not focused on it, this element alone could generate substantial income.
Key Opportunities:
One Stop Shop potential:
There is clear potential for one buyer to utilize the websites to sell direct or to make collaborations with other companies to sell everything kitchen related through the website from kitchens to utensils; from lighting to flooring. This has never been attempted by any company to date but the high profile; reputation and gravitas of this website allows an access to customers that would otherwise take substantial time and personal knowledge to build.
Advertising:
The business is often asked to include links to major companies and have in the past carried a "direct link advert" at a cost of £1,000 yearly for leading kitchen appliance companies. Although the potential is substantial, it has not been focused on to any extent and could lead to further growth in the future.
Given the excellent reputation both amongst consumers and within the industry - the website could be further utilized to provide an opportunity for kitchen related companies to launch new products, place job vacancies, provide high-end advertising; recall products etc. Equally, there is potential for this website to be utilized as a e-magazine as although there are a number of industry magazines - these are only targeted to the kitchen and bathroom industry but not to installers and customers who are a large visitor make-up on this website.
Financial Information:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the seller and all interested parties under the auspices of Turner Butler.
The seller is still concentrating on raising the profile of the websites and is continuing to add collaborations under the unique business model.
Support and Training
The seller would offer the buyer support for a smooth transition in the first year for a negotiated annual sum, if required by the buyer. This support would take the form of new articles, press (and TV exposure whenever the opportunity arose), which would further increase visitor stats. The seller would also be happy to offer consultancy thereafter or indeed, if the buyer did not wish to access this - would be happy to provide a full handover. | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | IK169 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
