Luxury Branded Gift Service Primarily Aimed At The Corporate Sector | | Undisclosed Relocatable | | Luxury Branded Gift Service Primarily Aimed at the Corporate Sector Ref.AH109 Location Relocatable Asking Price £200,000 | | BUSINESS FOR SALE ADVERT DETAILS ADVERT NUMBER : 49570
ADVERT IMPRESSIONS : 64,294 TIME(S) | | | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Gift Shops | | SALE: | Agent Sale | LEASEHOLD: | £200000 | | | | | | | | | | Add this business advert to your: | | | | | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established for more than twenty years and originally founded on the current Owner’s interests in wine. this business is firmly established as one of the leading luxury gifting companies in the UK.
Recognised as a brand in its own right and operating primarily in the corporate gifting sector, this business offers a collection of ready made food, drink and associated gifts, tailor-made for all events, special occasions and times of the year – ideal for weddings, engagements, birthdays and special celebrations right through to the arrival of new babies. Alongside its off the page gift ‘Collection’, the overwhelming majority of turnover, approximately 80% in all, comes through the business’s bespoke gifting service – gifts prepared to specific Client briefs and budgets, often combining individual items from the range available, to create that unique personalized gift.
Much more than just champagne, chocolates and flowers, this business operates very much at the premium end of the marketplace. The gifts are sourced from a constantly evolving collection of premium, luxury brands incorporating products across the full spectrum. Each gift comes beautifully wrapped in very stylish instantly recognizable packaging with a message card inside, packed to order and generally delivered the very next day – at a range of prices to suit every budget. Whilst the overwhelming proportion of turnover comes from the Corporate sector, the business also accepts individual personal orders which can be placed via the business’s excellent e-commerce website.
The key to the success of this business is the extraordinarily high levels of customer service it offers its Corporate customers. Many of its Clients use this business as a way of saying ‘thank you’ to key customers or to make up for their own mistakes or lack of service. It is essential therefore that this business doesn’t just match but greatly exceed the expectations of not only its Clients but the actual gift recipients. As well as enabling Clients to be able to track the delivery of their gifts, the business will even contact the recipient to ensure they will be able to receive it – and organize alternative delivery arrangements as and when necessary. As a result of this highly Client-centric approach, the business can boast a Client list that includes some of the bluest of blue chip companies in the banking, automotive, leisure and insurance sectors.
Run from very well suited premises, this is a very well conceived and maintained brand within its sector with high levels of awareness and a loyal customer base. With turnover for the financial year ending September 2009 slightly in excess of £500,000, generating a gross profit of £206,000 and pre-tax net operating profits of £70,000, this represents an excellent acquisition opportunity and should appeal to another gifting business looking for an ideal ‘bolt-on’, or an owner operator looking to acquire a very well established brand in the luxury gifting sector.
Key strengths:
This is a very well established, recognisable brand in the Corporate gifting sector. It has a very well designed, attractive Corporate identity – on a par with any luxury retail brand in the current marketplace – which follows through in all corporate and personal communications and suggests an organisation far larger that it really is. Apart from the gifts and their presentation, the business offers the very highest levels of customer service – helpful and friendly with the business often going the extra mile to meet its Clients’ requirements. With a strong logistics partner, gifts which are packed to order are delivered the very next day.
As a result of its high levels of customer service, the business enjoys an excellent reputation within the industry and can boast high levels of awareness. The business has a good volume of loyal, regular blue chip Corporate Clients. Focussing on premium, luxury brands, the business offers an excellent, wide and varied, flexible range of high quality gifts – ideas for all events and special occasions, with all year round availability. It has a wide ranging portfolio of gift suppliers and enjoys excellent supplier relationships with good trading terms, even when ordering small quantities and very importantly with a business where wine features strongly in its product range, with Customs – all of its wine is held in a bonded warehouse, for call off when required.
Operating from very well suited, premises, the business has low overheads, is eminently scaleable and relocatable.
Key opportunities:
There is an outstanding opportunity to build on the existing products and customer base of this company. With a strong demand for its products combined with a capacity to increase turnover, a new owner, contributing additional resources, will have every advantage of building on an excellent platform.
Currently operated by its Owners more as a lifestyle business than a full scale commercial enterprise, there is certainly scope to increase the activity levels of the business. Its very high levels of customer service – for which this business is very well known - coupled with the ability to respond to specific Client briefs and tailor make gift ideas accordingly, means this business is ideally positioned to make maximum inroads into the Corporate sector – both by extending as well as farming its existing customer base.
Whilst the Corporate sector represents the overwhelming proportion of turnover – even with a range of product which has significant consumer appeal, the business receives less than its fair share of consumer orders and there can be no doubt this sector, with investment in marketing and advertising, represents a potentially very fruitful area for future growth.
Premises and location:
The business operates from very well suited premises of approximately 1800 square feet with the Ground Floor dedicated to warehouse and despatch and a mezzanine used for additional storage and office accommodation.
Rent is £14,000 per annum with Rates of £x,000 per annum.
The current lease is due for renewal in November 2010 and has been extended to March 2011 with further extensions available.
Marketing and advertising:
The business produces a very well designed, aspirational catalogue showcasing its ‘Collection’ which is mailed out to its Corporate database and despatched on request.
The business also has a very well designed, informative and easy to navigate e-commerce website which performs very well in all the major search engines for all appropriate search terms.
By far the most effective form of marketing for the business, however, is the strong word of mouth recommendation and repeat business it enjoys, often from gift recipients themselves – testimony to the very high levels of customer satisfaction the business generates.
Financial profile:
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 financial year ending September 2009 was approximately £507,000, generating a gross profit of £206,000 and pre-tax net operating profits of almost £70,000.
The Asking Price of £200,000 is for a sale of the shares in the limited company.
Employees:
The Owners of the business – a Husband and Wife team operating in the Purchasing, Sales and Financial Control functions are ultimately responsible for the day-to-day performance of the business supported by a full time General Manager/Office Administrator and a part-time Packing Assistant.
The business also employs additional ad hoc staff for peak periods of demand – Christmas, Valentines Day and Mothers Day, for example.
Support and training:
The current Owners will provide full training and ongoing support as required, on all aspects of the business, to ensure a smooth transfer of the business to new Owners.
Reason for sale:
One of the current Owners has decided to pursue a personal professional interest in a sales consultancy capacity., outside the gifting sector. | | | | | | FOR SALE | | | | | REFERENCE: | AH109 / RightBiz | | | | | | Request more information about this business.. | | ENQUIRIES: | | | | CONTACT SELLER TO GET THE SELLERS DIRECT CONTACT DETAILS AVAILABLE TO MEMBERS ONLY | | | | | | | | | | | |
