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BUSINESS REFERENCE : ID018 / RightBiz B2B MOBILE PHONE/CONTRACT SALES BUSINESS | | | | | | B2B Mobile Phone/Contract Sales Business 95% of overall sales are B2B Confidentially offered for sale Ref No: ID018 Location: North West Fully relocateable Asking price: £99,000 plus stock at valuation | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Mobiles & Phones Shops | | SALE: | Agent Sale | LEASEHOLD: | £99000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
This business was established some 12 years ago by the vendor and in that time has established itself primarily as a professional Business to Business mobile phone dealer.
The business is a well established Orange Direct Dealer and T-Mobile Direct Dealer (Accredited IT Specialist) and utilises a distributor for O2 and Vodafone connections.
The business has an information website that has been established for 5 years. The website is updated with up to date offers, contact details and news of interest relevant to mobile phone users.
Forecasted number of upgrades due for 2008 are 1200 averaging £100-£115 per phone.
The company takes a consultancy approach to sales and majors on the service aspect. This results in high repeat business and a loyal customer base. The customer base is predominately Lancashire/North West.
The vendor wishes to retire from the telecommunications industry, reduce their working commitment and focus on property investment. All staff within the business focus on service and retaining customers. The business prides itself on excellent working relationships and its sterling reputation with all of its network providers.
It has to be said the business majors with Orange Direct and connections are also made to other networks where this is best for the customer.
The company also provides handsfree car kit fits and refers customers for vehicle tracking solutions to a partner on a commission basis.
95% of all connections and upgrades are to businesses and the remaining 5% are consumer connections, mainly done on a referral/repeat business basis.
75% of all connections and upgrades are on 12 Month contracts.
The business averages a total of 1200 connections and upgrades per annum dealing with a variety of SMEs to large limited companies and PLCs.
Technology:
The business utilises the “Salestar” specialist software solution developed specifically for mobile phone businesses. All information is backed up and the business holds detailed notes and information on all its clients. The business also utilises Sage Line 50 Accounting software
Customer Service:
This is one of the key strengths of the business. The business is highly focused on providing superb service levels rather than the hard sell. This approach is really unique to this particular market and clients find it very refreshing and informative. This has resulted in exceptionally high retention levels and referrals being received by the business.
Key Strengths:
By providing an independent, personal service that’s dedicated to finding the best package from the leading networks this business’s knowledge and impartial service gives customers access to all the major network providers.
With over a decade in the industry this business’s knowledge and flexibility allows them to meet the demands of business users requiring high levels of service and value. This has also enabled the company to forge very good relationships with BOTH its customers and suppliers so it can provide the best solutions.
This together with the excellent reputation, knowledgeable staff and levels of service sets this business apart. The business is well positioned for future growth as all the necessary foundations are already in place.
Growth and Expansion:
The business has a very impressive and diverse customer base of some 400 business users. It also has a further Top 100 targeted accounts which it is currently prospecting and it is only a matter of time before these businesses start to migrate to the business due to its superb service levels.
All growth to date has been organic. The business does no advertising . A more proactive sales and marketing approach would result in further revenues and increased client penetration.
Key Opportunities:
• Integration of database into an existing customer base will increase GP per connection/upgrade as greater volume will generate better commissions per phone/ongoing revenue streams available.
• Absorption into existing client base will provide economies of scale for administration.
• Utilisation of external tariff analysis companies will free up staff for proactive sales.
• Opportunities to cross sell landline solutions.
• Outstanding upgrades not taken up from database is 1550 mobile numbers plus hundreds of customers on prospect lists and ‘Hot 100’ target customers who are marketed to on a monthly basis.
Employees:
The vendor works part time within the business and is ably assisted by the following staff:
• One Full Time Sales Manager
• One Part Time Account Manager – 4 days a week
• One Full Time Trainee Account Manager
Advertising and Marketing:
As already mentioned the business undertakes no advertising whatsoever relying purely on word of mouth recommendations and referrals such is its reputation in the industry, In saying that it does have an informative website and does undertake some limited yet very definitive target marketing.
Premises:
The company operates from business premises that are also owned by the vendor. These premises are not offered for sale, however a lease period may be considered to enable handover to new owners . The business currently pays rent of £15,600 p.a. Premises comprise open plan offices circa 600 square feet with a counter and display area with several small offices also. Business is located on a prominent industrial estate with good access and parking.
Business Hours:
Monday – Friday: 0900-1715
Financial Information:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business consistently achieves turnover well in excess of £300,000 per annum with impressive gross profits circa £130,000. Current stock levels are circa £6,500. This represents an excellent opportunity to acquire a very reputable and solid business with an enviable B2B customer base and several growth opportunities.
Reason for Sale:
The vendor wants to spend more time developing property and developing other business interests.
Support and Training:
The current owner would be happy to provide full training and support at handover. | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | ID018 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
