Handycraft Retail & Service Business In Melbourne For Sale

Business description

Business Description Summary:

This business represents a labour of love which started as a hobby and commenced trading as a full business operation in 1983. The business commenced trading at its current location and has built up great goodwill and recognition in the area. It is located just off the Maroondah Highway at the start of the Lilydale shopping area. The building is owned by the vendors. The location was specifically chosen by the vendor because of the absence of any competition in the surrounding area. Since its establishment some start ups have come and gone and currently the closest competition is over half an hour away in Bayswater. Owing to her prior knowledge and experience, both as a hobbyist and entrepreneur, the owner has been able to determine precisely what the target market wants and this knowledge has enabled the business to grow steadily year on year. She will gladly pass on this knowledge to the new owner and continue to be a source of advice and knowledge, if required.

Should a prospective buyer not wish to take over all the stock, the vendor will be happy to retain whatever is not required, provided she retains the right to sell or dispose of it.

The business has been relatively unaffected by economic conditions, including the global financial crisis.

Operations:

The business operates:

• Monday to Friday 10.00 a.m. to 5.00 p.m.
• Saturday 10.00 a.m. to 1.00 p.m.
• Sunday Closed

Handicraft hobbyists all have different interests, tastes and requirements, and most need advice and discussion, while others require formal lessons, which are provided at the store by the owner and five other private contractors who also do some selling whilst in the shop. They are paid $15 - $20 per hour, and lessons are charged at about $30 per hour. Minimum class size is four people. Private classes are arranged from time to time, and are more expensive. Lessons range from beginner to expert.

Add on sales are very easy: Book – pattern – product – lesson.

Prepacked kits have been developed and pre-cut to suit mainly newer customers, and sell for between $115 and $195.


Market / Customer:

The handiwork that the business caters for is very addictive and most customers become lifelong, loyal followers. The major category of customer is mature aged ladies who have some time on their hands, or a talent for this type of work. In addition, the younger generation appears to be showing similar interest in learning these crafts, although tastes are obviously slightly different and these trends will need to be accommodated in the future. It is a very “touch & feel” business and the customers enjoy discussion and interface with the owner. Repeat customers, including local, interstate and overseas, represent a very important part (up to 80%) of the customer base.

The business operates a website which, at present, is an information only website, which nevertheless leads to a lot of business and customers. The vendor believes that the business lends itself to active, direct selling on the website and it was part of the future plan to extend the website to accommodate this. A direct sales website would make repeat purchasing far easier for existing clients, and this alone would increase sales.

Some customers represent a straight retail sale, while most browse through the eclectic stock in the shop looking for ideas and advice. This makes them ideal sales targets. The shop is littered with examples of many different types of handiwork, which sparks ideas in the minds of browsing customers, who then become paying customers.

Products / Services:

The following are the main products sold:

• Bolts of material
• Threads
• Buttons
• Embellishments
• Books
• Patterns
• Japanese panels
• Bags and accessories
• Sewing accessories

for the following techniques:

• Quilting
• Needlework
• Patchwork

Premises:

As mentioned above, the premises are owned the vendor, who will negotiate a lease at the current rental to suit the needs of the purchaser.

Equipment / Fittings:

Air conditioning, tables, shelving and counters to a value of about $15,000 are included in the asking price.

Management / Staff:

The vendor will provide up to one month hand over period and ongoing consultancy if required.

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

Property information

Real Estate:

Lease

Lease terms:

To be negotiated with vendor

Location:

Outer Eastern Suburbs

Premises details:

Owned by vendor. Lease to be negotiated at current rate.

Business Operation

Expansion potential:

Good

Competition / Market:

Limited

Reasons for selling:

Retirement

Trading hours:

• Monday to Friday 10.00 a.m. to 5.00 p.m.
• Saturday 10.00 a.m. to 1.00 p.m.
• Sunday Closed

Employees:

5 contractors

Years established:

1983

Other information

Support & training:

Major training will be provided and ongoing support will be available

Relocatable:

This business can be relocated.