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BUSINESS REFERENCE : AO024 / RightBiz AO024-EAST SUSSEX-£199,000-WELL ESTABLISHED TV, VIDEO, HI-FI AND DVD OUTLET | | | | | | Well established TV, Video, Hi-Fi and DVD outlet – retail sales, repairs and installations Ref no: AO024 Location: East Sussex Confidentially offered for sale Asking price: £199,000 | | | BUSINESS LOCATION: | Undisclosed East Sussex UNITED KINGDOM | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Electrical Retailers | | SALE: | Agent Sale | LEASEHOLD: | £199000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Opened in 1980, this is probably one of the oldest established, independent audio visual dealers in Sussex.
Situated in one of East Sussex’s busiest and liveliest towns, this business operates from very prominently located retail premises, enjoying high levels of footfall and passing traffic. Double fronted – in essence two adjacent units - one dedicated to audio visual, the other purely audio, this business stocks all of the very latest equipment in the audio visual sector - plasma, LCD, audio and surround sound systems, dealing directly with all of the major brands including Toshiba, Pioneer, Denon, Marantz, Keff, LG, Monitor and via major wholesalers in relation to Samsung, Sony and Panasonic.
Throughout its many years of operation there have been vast leaps in all types of equipment in the world of electronics and this business has more than kept pace with the development of this technology, remaining a firm favourite amongst an extensive and loyal customer base.
This business offers a high level of personal service and customer care. Staff are highly skilled, well trained in the art of selling, very knowledgeable of the products and technology, their manufacture and availability. The sales approach can best be defined as ‘consultative’, talking customers through the alternatives to ensure they are best placed to make the right purchasing decision. The business has also adopted a ‘can – do’ attitude with nothing too much trouble. Even the smallest jobs - the repair of a remote control for example are taken on in the knowledge that a happy customer will remain a loyal customer and may well return one day to place a very big sales order.
This is a very well established business which has performed consistently well throughout its many years of operation. With turnover in excess of almost £800,000 generating gross margins of 25%, this represents an excellent acquisition opportunity for another business currently operating within the entertainment goods retail sector looking for a prime retail location or alternatively an audio visual enthusiast – an owner/operator looking to acquire a foothold in the sector and an excellent base for future growth.
Key strengths:
For nearly thirty years, this business has built a considerable reputation in relation to premium quality entertainment equipment. TV, Video, Hi-fi and more latterly DVD, this business sells it, installs it and occasionally – but less so recently, as technology becomes more and more disposable, repairs it! Quite simply, this business is the leading independent in its area.
It has an excellent reputation for good quality product at competitive prices and excellent levels of service pre and post sale, installation and repair. It is equally well known for its high levels of product knowledge, reliability and integrity. It employs to highly skilled teams of engineers and installers. With excellent direct relationships with manufacturers and its wholesale distributors, this business makes good margins.
This business has a solid base of local customers – many of which have been loyal to the business for a number of years.
Perhaps the greatest strength of the business however is its prime location. Orignally on the periphery of the main commercial centre of this busy Sussex town, with the significant growth the area has enjoyed in recent times, large numbers of ‘synergistic’ businesses have grown up around it, attracting high volumes of high net worth individuals into the area – exactly the kind of customers on which this business thrives.
Key opportunities:
With a strong demand for the products and services of this business and capacity to increase turnover, a new owner would contribute fresh ideas, enthusiasm and outside influence to build on an excellent base.
This business maintains an extensive base of satisfied customers, who appreciate the company’s superior products and service. There are many excellent avenues for growth, especially with investment in marketing including advertising and as yet unexploited internet opportunities – this business currently has no web presence whatsoever.
With no ‘heavy discount’ retailer within the town in which this business is based, there is also scope to trim the margins this business currently achieves right back to the bare bones to exploit a definite gap in the marketplace.
Premises:
The business operates from approximately 1,200 square feet of premises comprising two retail units combined to create a very well suited and furbished retail showroom – one unit dedicated to audio visual products and the other, pure audio. There is also an area to the rear used for storage of smaller, fast moving retail items. The premises are very secure with a fully operational Redcare alarm system, grilles to all windows and Chubb locks, top and bottom of the doors.
The shop is located in a prime corner retail position, enjoying high levels of passing traffic and top of mind awareness as well as good footfall. There is ample paid-for roadside parking in the immediate vicinity.
The premises are leasehold – one unit has eleven years and the other fourteen years remaining on their leases. Rent is £17,000 per annum per unit. Rates for the business as a whole are £10,000 per annum.
Operating hours:
The business is open between 9.30am and 5.30pm Monday to Saturday and is closed on Sundays.
Employees:
The Owner is responsible for the day-to-day operation of the business supported by a part time Sales Assistant/Installer, a full time Installer/Delivery man and a part-time Service Engineer, working three days per week.
Marketing and advertising:
Located in a prominent position on a major road and benefitting from high levels of customer awareness resulting from its many years of operation, the business has little neeed of advertising.
The business has a presence in all of the local Directories but benefits most from the most cost effective form of marketing, strong word of mouth recommendation which ensures a constant stream of customers through the door.
Financial Information:
The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Turnover for the twelve months to end July 2007 was in excess of £690,000 with gross margins of approximately 25%.
The Asking Price for the business is based on a sale of the assets and goodwill to include stock which is generally valued at £60,000 - £70,000 at any one time.
Reason for Sale:
This is a genuine retirement sale.
Support and Training:
The current Owner is happy to provide full business familiarisation, training and handover to ensure a smooth transfer of the business to new Owners. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | AO024 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
