Importer & Wholesaler of Jewellery For Sale

Business description

The business is an importer and wholesaler of jewellery.

Product is purchased from Italy, Thailand and Hong Kong.

Distribution within South Africa is through commission earning
agents.

Business is conducted through direct sales from stock held
by the agents or at head office.

Business has been established for five years.

Trading hours are from 9:00am - 4:30pm Monday to Friday only.

Assets: comprise mainly of office/showroom furniture, computers, and stock room fittings.

The owners Lexus is currently on the asset list.

The purchaser will have the option to include the vehicle in
the sale if desired.

Property information

Real Estate:

Lease

Lease terms:

March 2011 - Two underground parking bays are included in the lease.

A third bay is being negotiated.

There is a option of renewal of the lease (three years).

Trading hours are from 9:00am - 4:30pm (Mon - Fri) only.

The square meterage of the business is 125sq m.

Other information

Expansion potential:

This business imports and sells a very good quality of product
and has the showroom and presentation to match the standard one
would expect at this level.

It has shown very good year on year growth and has a good return.

There is a considerable number of business development opportunities
if the commisioned agent sales force was to be increased.

The current owner is also investigating e-commerce which is showing considerable potential.

Product range extension could also be considered.

Competition / Market:

The company owner makes regular trips to Italy, Thailand, and Hong Kong to deal directly with suppliers and to purchase stock. Commisioned agents carry stock and work with retail outlets directly. There are agents in Cape Town, Johannesburg, Port Elizabeth and Durban. Product is supplied direct from stock and sales are cash or limited credit terms only. Direct canvasing and referrals. The business does particpate in one trade fair per year in Cape Town and has considered attending another in Johannesburg. They have also started advertising in a key trade journal. No contract work exists. There is a many and varied range of competitors, but this company provides a fine quality of product and has restricted itself to a limited range of items to provide better focus. Trends follow the summer highs and winter lows rather than trends related to tourism or holiday season.

Support & training:

The current staff have been within the business for some time and are reliable. They currently maintain the showroom and sales support when the owner is on his overseas buying trips which may last up to three weeks at a time. The owner is fully involved in the business and takes responsibility for meeting with overseas suppliers and purchasing stock.

Reasons for selling:

The current owner has decided it is time for early retirement and a possible move overseas. There is the possibility that the current owner may be willing to act as buyer overseas if the purchaser required.

Trading hours:

9:00am - 4:30pm Monday to Friday only

Furniture / Fixtures value:

R203,000 (included in the asking price)

Inventory / Stock value:

R1,000,000 (included in the asking price)