Gymnasium Equipment Manufacturer In Melbourne Massive Price Reduction For Sale

Business description

*Price seriously reduced for quick sale.
*vendor finance available to approved purchaser.
*joint venture or partnership will be considered.
*equipment is very versatile and can be used for many other purposes as well.

Equipment alone is worth more than the purchase price.


Business Description Summary:

The business being offered for sale is Australia’s only fitness equipment manufacturers, producing a comprehensive range of state of the art, biomechanically designed equipment. The business was started by the vendor in 1979 and his understanding of performance gymnasium equipment has enabled the company to continue to deliver an incomparable product.

Originally operating out of the owner’s backyard, the business moved to its current location in 1988, where it has been manufacturing continuously ever since.

Operations:

Operating hours are normally 9.00 a.m. to 5.00 p.m., Monday to Friday, but have recently been reduced owing to the vendor’s reduced activity in the business.

Market / Customer:

The clientele of the business are major fitness centres, institutions such as the police and armed forces, retailers and some domestic users. Sales are evenly spread across the database with no single customer or group of customers holding an excessive share of sales. The customer database has approximately 1,000 active customers.
Products / Services:

All equipment manufactured by the company is sold under the company owned brand names:

To compliment the range and round out the offering, small amounts of ancillary equipment is purchased both locally and overseas.

The company also has a revenue stream derived from the servicing of gymnasium equipment, both company and third party.

Competitive product imported into Australia is not as high quality as the product produced by the company, and local pricing is competitive. In addition, local manufacture gives the company the advantage of being able to customise production and to produce small quantities, giving it a competitive advantage for smaller fitness centres.

The current range of products manufactured includes:

• Seated leg extension machine
• Seated leg curl machine
• Rear deltoid machine
• Vertical rowing machine
• Chest press machine
• Shoulder press machine
• Pec Deck machine
• Lying leg curl machine
• Standing leg curl machine
• Lat pulldown machine
• Rotary torso machine
• Bicep curl machine
• Seat calf raise machine
• Elite range of benches
• Squat rack
• Fixed barbells
• Fixed barbell rack
• Incline bench press
• Olympic weight rack
• Smith machine
• Stepper
• Standing calf raise machine
• Marathon treadmill
• Leg press machine
• Bicep curl machine
• Leg curl machine
• Seated tricep machine
• Leg extension machine
• Abdominal machine
Premises:

The premises are owned by the vendor who will enter into a lease with the purchaser, should it be required. The premises are 875 sq.mt. in extent comprised of:

• Showroom/Warehouse/Factory 750 sq.mt.
• Mezzanine level 125 sq.mt.
Plant/Equipment / Fittings:

Plant, equipment, fixtures and fittings included in the price is as follows:

Pallet racking/Shelving benches/Desks $ 50,000
Gantry crane $ 10,000
Power Hacksaw $ 10,000
Brobo cold saw $ 10,000
3 x MIG welders $ 10,000
Spray booth $ 10,000
3 x Pedestal drawers $ 5,000
1 x 3 MT Pedestal drill $ 2,000
1 x Powder coat unit $ 10,000
Guillotine $ 5,000
Punch and shear $ 10,000
Wood saw $ 2,000
Small tools $ 20,000
Lathe $ 5,000
Drills, tools, machining, engineering parts $ 20,000
Steel/Wood $ 10,000
D/B Saddles $ 2,000
Spring pins $ 2,000
Bolts, parts, accessories $ 20,000
Forklift $ 15,000
Delivery truck $ 15,000
$250,000

The equipment is very versatile and can be used for many different manufacturing applications, giving the business great flexibility and the ability to diversify and expand.
Management / Staff:

The company employs four people all on a part time basis:

• Welder
• Delivery
• Two technicians

The vendor’s role is largely organisational, administrative and marketing. The vendor has put the business on the market owing to his retirement, and this has caused the business to contract from its peaks. The vendor is confident that this lost ground can easily be made up and will play a role in achieving this, if required.

In business times when the business was in its growth phase, sales were sufficient to necessitate night shift work. The business can command exceptionally high orders, as high as $500,000 for one order. The business achieved annual sales of $1 million during its peak years.

The vendor will be happy to provide significant assistance to the buyer, both in relation to the running of the business and product design.

***** ***** ***** *****

To receive ADDITIONAL INFORMATION on this business, please contact Steve Lentin:

Property information

Real Estate:

Lease

Lease terms:

To be negotiated.

Leasehold rent:

$120,000 per annum

Location:

2 Cochranes Road, Moorabbin. Light industrial/Commercial/ Residential

Premises details:

8750

Size in square feet:

8,750

Business Operation

Reasons for selling:

Retirement

Trading hours:

5 day week

Employees:

4

Years established:

30

Other information

Support & training:

Major support for hand over and continuing assistance is offered.

Furniture / Fixtures value:

$250,000 (included in the asking price)

Inventory / Stock value:

$20,000 (included in the asking price)

Related documents:

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Relocatable:

This business can be relocated.