Leading Plumbing & Heating Independent For Sale

Business description

Established in June 2001, this business specialises in the provision of the full range of high quality plumbing, heating and bathroom supplies to both the trade and retail sectors.

Known for being professional but perhaps more importantly competitive in price, as would be expected from an independent, not tied to any particular trading relationships, this business sources and supplies from a wide range of manufacturers on behalf of its loyal and satisfied customer base. This business is particularly known throughout the trade for its excellent product knowledge – particularly attractive to the keen DIY’er - with many customers travelling long distances for this business’s wide range and to take advantage of the extensive knowledge and technical advice offered by its employees. All members of staff go out of their way to ensure the customer selects the product most suited to their needs.

Approximately 70% of the turnover this business enjoys comes from repeat, trade customers – around 250 local trade accounts in all and growing, with a large proportion of the remainder arising out of trade recommendations – plumbers recommending their customers to purchase from this business, for example.

This business is based on a small industrial estate in two, modern, light industrial units within a few yards of each other – one of which is given over to its trade counter and stores, the other, possibly the biggest showroom on the South Coast from which customers can select from an excellent range of equipment from predominantly British manufacturers.

As well as the trade and retail sectors, this business has built a significant relationship with one of the major boat manufacturers in its area. Acting as an auxiliary parts department, replacing its in-house stores, this business liaises directly with senior Line Managers to identify what is required, for which the business receives a management fee, over and above the cost of the parts supplied. This business supplies all the pipework and lagging involved in the building of its Client’s world leading brand of yachts, supplying large volumes of product ensuring parts are readily available to the production line. This business has also benefited significantly from the recent launch of its e-commerce website in association with e-bay. In just over 8 months, turnover from this channel alone, covering all aspects of plumbing, heating and bathroom products has exceeded £120,000.

With its current size, outstanding reputation and constant commitment to quality and excellence, this business offers excellent potential and great opportunities to expand upon its loyal Client base. With a good reputation, excellent product range, high levels of customer service and turnover for the 2006 financial year in excess of £1.3m – a performance set to be replicated in 2007, generating a gross profit of over £270,000, this is an excellent opportunity to acquire a very well established, leading, independent, plumbing and heating supplier.



Customer service:

This business prides itself on the high levels of customer service it offers. All staff are highly trained to provide practical advice and assistance to the highest level when required.

It has established an excellent reputation amongst its customers for pre and after sales service. In the unlikely event that anything should go wrong with a customer order it is immediately rectified to the customer’s satisfaction.

Property information

Location:

The business trades from two well-positioned, modern units on a small industrial estate on the outskirts of this bustling Dorset town. Ideally located, this business is easily accessible by the excellent road network and has ample space for customer parking. Each unit comprises approximately 1800 square feet with additional space afforded by mezzanine floors. The first unit is a dedicated trade ‘counter’ and storage with office accommodation and the second unit a dedicated showroom.

The premises are leasehold at an annual rent of £1,250 per month, per unit. Rates are £400 per month, per unit.

There are 5 years remaining on the leases, however it is understood renewal would not be a problem.

IT systems:

The business operates the Exchequer System – a complete business management system, which is secured on an annual maintenance agreement.

Other information

Expansion potential:

Key strengths:

With a successful trading history of over 6 years, this business is well established and well known within the trade. It operates from very well suited premises including possibly the largest showroom of its kind on the South Coast. Carefully managed since Day One, the business trades with the minimum of overheads.

This business has established an excellent reputation for its wide range of quality products and superior customer service. Its excellent levels of product and technical knowledge make it the first port of call for any DIY’er embarking on a project involving baths, showers or heating. It has excellent supplier relationships ensuring stock is always readily available at competitive prices, whilst still maintaining good margins.

Outside its trade and retail operations this business has established an excellent ‘outsourcing and fulfilment’ relationship with one of the major manufacturers in its area, generating high volumes of turnover. Not merely a preferred supplier, this business manages their total requirements within the plumbing and heating supplies sector.

Acknowledging the importance of the Internet in today’s commercial climate, this business has developed a fast growing e-commerce trade which, despite being in operation for just a few months, is contributing significantly to the overall performance of the business.

Key opportunities:

There is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's services, a new owner contributing fresh ideas and investment – to ease the cashflow situation, particularly, will have every advantage of building on an excellent platform.

Despite adopting a fairly relaxed approach to business development this business has prospered over the six years of its existence. There is no doubt however that a new Owner with drive and commitment would take advantage of the additional opportunities there exists not only within the existing customer base, but by building on fast growing e-commerce trade and its implant agreement with the boat manufacturer.

Whilst this business has carved itself an excellent niche in the market primarily servicing the trade sector and attracting the DIY’er via its added value technical advice, a more pro-active approach to sales and marketing with the possibility of employing a field sales rep and attacking the building sector which has not been a priority in the past, would undoubtedly reap significant dividends.

Competition / Market:

Being well established, with a significant trade and retail customer base this business does little by way of advertising, enjoying high levels of repeat business and the most effective form of marketing, word of mouth recommendation, testimony to the excellent reputation this business has for competitive pricing, customer service, product knowledge and technical expertise. The business has a very effective e-commerce presence in conjunction with e-bay – the site currently receives between 1,000 and 1,500 hits per month. The business also has a limited presence in the local directories and places the occasional showroom based ad in the local press. In addition the business undertakes on-going quarterly promotions aimed at the trade – with flyers available at the point of sale and mailed directly to its 250 or so trade accounts.

Support & training:

The Owners are happy to assist with full hand over and the training to ensure a smooth transition of the business to its new owners

Reasons for selling:

The business is for sale as a result of ill health to one of the co-Owners.