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BUSINESS REFERENCE : AD011 / RightBiz INDEPENDENT ELECTRICAL RETAILER DOMESTIC APPLIANCE | | | | | | Independent Electrical Retailer Domestic Appliance Sales, Service & Rental Confidentially offered for sale Ref No: AD011 Location: Midlands Town Centre Asking Price: £950,000. | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Electrical Retailers | | SALE: | Agent Sale | LEASEHOLD: | £950,000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
This business was founded in 1965 by the Vendors with a generous combination of innovative insight and entrepreneurial spirit and has grown since to become one of the UK’s largest independent electrical retailers with a superb reputation for the quality and variety of its products, brands, service and reliability.
The business occupies prominent premises with glazed frontage offering high product visibility. The business retails most of the leading brands of sound and vision appliances, white goods, and an extensive collection of the most in demand electrical goods. The product range stretches across the spectrum from the traditional to the highly ultra-modern and contemporary. It is significant that this business has made such success of retailing products across the whole cost spectrum and delivers quickly to customers in the area. This success has been achieved and continues in the face of significant competition from the large multiples……………
……… In other words – competitors can’t beat them!
The vendors have been involved in the business since its first days of trading and can offer considerable advice and information concerning all aspects trading in the region. The most hugely impressive showroom consist of approximately 7,000 square feet with additional office, service and stores. Despite the size of the retail floor space the company manages to display in a welcoming showroom setting thus providing customers with the fullest possible context for choice options that include Plasma & LCD televisions, DVD recorders, photographic and video equipment, refrigerators, washing machines, dishwashers, tumble dryers, cookers and vacuum cleaners and much much more, too numerous to mention herein, as in fact the product range extend to some 1,200 lines with around £550,000 worth of stock in store and ready for immediate delivery!
The business is further supported by exemplary relations with key suppliers who have helped to ensure that client service and product quality is never compromised and that customers receive the highest possible quality of service, leading to the existing high levels of return custom. This commitment to suppliers and customers has underpinned this business’s abilities in service quality and sustained business success.
Customer Service:
Customer service is a priority within this premier company.
Clients can be assured of receiving good technical information and guidance. They can also be assured that all company staff are fully trained and able to implement servicing and installation work.
Major endorsement of customer service focus and dedication is via the approved service centre status enjoyed by the company. Clients can be confident that the company knows the products it supplies, installs and services.
All installation and servicing carries full guarantees.
Key Strengths:
A primary strength of this business is its broad portfolio of products and brands on offer combined with the quality and size of the showroom facilities, backed up by an installation service of high repute that gives it a competitive advantage.
The business is an organisation where the vendor has, over time developed and nurtured a name and reputation that has resulted in customer relations founded on a history of trading satisfaction and not contingent upon particular relationships with the vendor.
The business is well established and profitable, with a strong and growing customer base, retaining a high level of return custom; a great many of whom having done so on a regular basis and for many years.
The company has earned an outstanding reputation for its honesty, service, reliability, casual and open customer experience, excellent quality products and highly knowledgeable and experienced staff.
Growth and Expansion:
Whilst this is a solid well run business which makes good profits coupled with a strong cash flow, there is excellent potential to grow within its current structure.
The business could easily expand its number of outlets with the central warehouse in place. It could also develop its website and start to sell online, something which has not been exploited so far. The competitive pricing that is offered with the ample stock holding makes this business an obvious candidate to sell on the web and the existing web site launched in 2004 provides a solid foundation upon which to grow online sales.
This business maintains a most impressive database of around 30,000 satisfied customers, who appreciate the company’s superior products and service. There are many excellent avenues for growth, especially with extra investment in marketing including advertising and as yet underexploited internet opportunities, where the business has lacked in its aggression in the past.
The company benefits from being a leading member of Britain’s largest Electrical Buying Groups. This affords the business the opportunity to buy at improved prices giving them additional margins to add on to their bottom line profit.
Key Opportunities:
Longevity of trading has created strength. For forty years this company has ensured its clients receive a superior service. Further strength is apparent in the fact the company is independent. This ensures flexibility, and the ability to embrace new ideas with ease.
This is an outstanding opportunity to build on the existing business levels, reputation and customer base of this company. With a strong demand for this business’s products, combined with a capacity to increase turnover, a new owner contributing fresh ideas will have every advantage of building on an excellent platform. The current market for this business’s products is stable and is forecast in the longer term for significant growth. The business is well positioned to take maximum advantage of this growth as it occurs.
Advertising and Marketing:
The business has built up an excellent marketing base and promotes its services in the Yellow Pages, local press advertising, leaflets, brochures, and window posters. The business has a large repeat client base, and benefits extensively from word of mouth recommendation, the finest form of marketing. Further and more assertive advertising would expose the business to a much larger segment of the market.
Business Hours:
The business trades 7 days per week.
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 is financially stable with low overheads, positive cash flow, no debtors, enjoys high gross profits and has shown consistent strong growth over the years.
The current turnover is circa £3,000,000 per annum with a gross profit of circa £1,100,000.
Reason for Sale:
Having spent the last forty years developing the business - and on the wrong side of 65 the Principal now seek a more leisurely lifestyle to enable him to indulge personal interests and passions. The Principal also recognises that the business could grow significantly by the influx of new marketing skills.
Support and Training.
The current owner will provide all necessary training and all relevant contacts to allow continuity of trading. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | AD011 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
