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BUSINESS REFERENCE : IU105 / RightBiz WELL ESTABLISHED HIGH STREET COMPUTER RETAILER AND ON-LINE MAIL ORDER FOR ELECTRONIC GADGETS | | | | | | Well Established High Street Computer Retailer and On-Line Mail Order for Electronic Gadgets Confidentially offered for sale Ref No: IU105 Location: Scottish Central Belt Asking price £1,950,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Computer & Equipment Sales | | SALE: | Agent Sale | LEASEHOLD: | £1950000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
Established in 1997, this award winning Scottish based company started as a computer hardware, software and complete systems provider as a sole trader and has now moved to a substantial retail outlet in a prime location within a City Centre. The rapidly developing hand held PDA and GPS market prompted the vendor to enter this sector and quickly established the company as a leading provider of satellite navigation systems. The excellent suppler agreements enbled this company to be one of the first to ship new models at launch to its clients, thus further establishing itself as a major player in this highly competitive but lucrative market sector. The e-commerce side of the business now trades from a separate leasehold unit on the outskirts of the City, enabling the vendor to continue to grow his market share without restriction
Key Strengths:
The company is not a low price product supplier. The business is founded on a solid ethic of customer service and higher margins, delivering value added services and technical expertise
The company’s retail outlet is in a prime location in the city centre, within walking distance of major transpot links and prime shopping area’s. It maintains an extensive product offering, including mainstream as well as more niche products, and has access to almost any item available via a comprehensive network of suppliers. The company’s long standing relationships allowing it to buy at extremely competitive pricing. Staff are of a high technical level, with a genuine interest in computers and customer service delivery, and the capability to offer advice on equipment best suited to the customer’s needs, supported by regular staff product briefings held in store to maintain a consistent level of product knowledge
The companies strong ethos in after sales support ensures that customers are supported throughout the life of their purchase. The computers are amongst the most reliable, with a lower than average failure rate, although in the case where a fault does occur, the customer can be sure of ready telephone access to a knowledgeable advisor. The company’s expertise in offering custom built systems allows it to pass on important savings to customers, and ensures that systems contain the very latest technology and the most current components available
Being an authorised distributor for various global provders means leads come thick and fast, further increasing the companies profile and market position.
The company’s capability to sell 24 hours a day via the website enables it to secure a growing percentage of the satellite navigation market, which continues to offer dramatic growth potential
Growth and Expansion:
The business operates in a market where smaller players have been squeezed out as margins are sacrificed for the sake of competition for market share. By focusing on offering higher perceived value service, the business has been able to maintain margins and create a very supportive loyal customer base. The satellite navigation market is forecasting 2008 as the sector’s best ever year, as the technology becomes more widely accepted and used, and with in car units becoming almost as standard as the stereo. Accordingly, the directors see significant future opportunity via a number of strategic initiatives.
Employees:
The current vendor continues to take a central role in the growth and development of both sides of the business, despite being ably supported by a team of approximately 19 experienced and well trained staff.
Advertising and Marketing:
The business is continuing with the current growth strategy with a commitment to use proven avenues for lead generation, including but not limited to, Yellow Pages, Pay Per Click, industry publications. It also benefits from the finest form of marketing, word of mouth recommendation. Consistent growth will be achieved by building on this success.
Premises:
The retail outlet takes a prime corner locatiom in the city of circa 1,600 sq. ft. spread over the ground floor and basement. The premises are owned by the current vendor and he is happy to assign a new lease.
The e-commerce trades from a leasehold unit on the outskirts of the City on a small industrial estate, ideally suited to the mail order operation. It has ground floor offices and substantial storage on the ground and mezzanine levels. It has a passing rent of circa £6,000 per annum.
Business Hours:
The retail outlet trades Monday to Satrurday from 9.30am to 6.00pm. The e-commerce outlet is manned from 9.30am to 6.00pm Monday to Friday.
Security:
The premises benefit from security alarms and grills and are supported by local communal CCTV
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 current turnover is circa £3,500,000 per annum with a gross profit in excess of £800,000.
Reason for Sale:
Our client reluctantly places this thriving business on the market as he has other business interests that are all proving to be time consuming. Having dedicated all his time to building and growing this business for the last 10 years, he also feels it is important to spend more time with his young family.
Support and Training
Handover and training will be provided | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | IU105 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
