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BUSINESS REFERENCE : CH053 / RightBiz DRINKS AND SNACK VENDING MACHINE SERVICE COMPANY | | | | | | Drinks and Snack Vending Machine Service Company Confidentially offered for sale Ref No: CH053 Location: North East Asking price: £350,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Leisure, pubs and hotels | | TRADE TYPE: | Bed & Breakfast | | SALE: | Agent Sale | LEASEHOLD: | £350000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile
This is an excellent opportunity to aquire a company where the income starts as soon as a purchase is completed. The business wholly owns over 100 vending machines, which dispense, coffee, tea, soft drinks and snacks. A high percentage of the machines are on long term contracts, placed in working enviroments, where the only source of beverage and snacks available is from the dispensing machine. These machines are highly profitable with a huge stock turn of product.
This market continues to grow at an annual rate of 10% per year, and the forecast is for this to continue in the future. The vending market is recession proof, with continual daily use of the machines.
The majority of the machines take cash for the purchases, although one of the major blue chip contracts pays monthly for the provisions that the machine has dispensed. This is an easy and profitable agreement to administer, and serves as an excellent cash flow for the company.
Vending is an all year round business with no seasonal fluctuations, accurate budgeting makes it easy to administer. On average it takes 10 minutes to restock each machine and remove the cash. The machines located on busy sites are replenished up to 3 times per week, but on average restocking of machines occurs on a twice weekly basis.
Vending is a business with no personal selling required, the machines sell for you, allowing you to work smart instead of hard. Vending machines are considered ideal sales people, always on the job, never late for work, never take coffee breaks or call in sick. Vending machines never insult customers, give away free samples or steal profits, they don’t take bad cheques, expired credit cards or give out credit. Cash is collected in advance and the product is delivered immediately.
Customer Service
With a large number of machines sited in industrial environments, which are constantly in demand, it is imperative that there is a continual replenishment of products to supply the thirsty and hungry workers. The company have aquired blue chip long term contracts on the back of their excellent and reliable service performance.
The business owns three liveried vans to perform their impeccable delivery service.
Key Strengths
The company is able to offer a consistent high level of service to its clients and has built up an enviable reputation as one of the most reliable vending services in the North East.
The business is the local vending distributor for one of the worlds leading household name coffee brands, giving the business a decided competitive edge when placing one of their vending machines.
The company provides the machines on a free delivery and installation basis, the machines are stocked and replenished with top branded products and achieve gross margins of between circa 37% - 50% per item.
There are three major blue chip contracts in place, with varying time scales. These are administered in different ways, but are easily operated and highly profitable.
Growth, Expansion & Opportunities
The company operates on extremely low overheads. Two partners run the business, with a part time delivery person and one other part time administration clerk. Taking on further work and more machines would mean investment in extra staff, any extra investment could easily be recouped. The contracts already in place are likely to grow and require extra machines.
There is no limit to the number of sites where machines could be placed, each of which would be earning money. The company have not increased the number of sites over the past couple of years, having as much as they could handle on present staff levels. A new owner with energy and fresh ideas could encourage the business to grow.
Premises
The company operates from a warehouse of circa 600sq.ft., based on a busy industrial estate in the North East. There is a small office area with the remainder of the warehouse space being used for storage and as a loading bay.
The lease, which is up for renewal, is circa £4,639 including rates, per annum.
Equipment
At present, there are circa 120 various, sited vending machines. The business owns three full liveried delivery vans and a stair crawler.
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.
Current turnover is circa £270,000 per annum, with Gross Profits of circa £101,000.
Reason for Sale
The current owners would like to pursue a new opportunity and feel the time is right for them to sell the business.
Support and Training
The business runs smoothly and is easy to administrate. The owners will be happy to help with a smooth transfer and handover. | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | CH053 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
