National Mail Order Service And Poultry Equipment Manufacturer For Sale

Business description

Business Description Summary:

This is a very unusual business, which offers any purchaser a business with limited competition, and with a reputation of expertise in its field, unrivalled in Australia. The vendor is clearly one of Australia’s leading poultry experts and will be very happy to employ his best efforts to maintain and enhance this reputation on behalf of the new vendors, if required. He will grant a generous handover period and would be willing to remain involved in the business on a consultancy basis, including editorial on the website to promote the business.

Ill health has forced the vendor to curtail expansion in the last few years, and has now strongly influenced his decision to put the business on the market.

The primary function of the business is to buy, manufacture and sell poultry equipment, predominantly by mail order, telephone, email and post. The company has a website which has been designed as an information tool, with the potential for full e commerce should a new owner decide to upgrade. The nature of the business and its customers lends itself to a successful website operation and the vendor believes that extending the website to be interactive and used for receiving orders, would enhance sales significantly.

The website currently contains over 1,000 pages of information on product and applications.

The manufacturing side of the business could all be outsourced at marginally higher costs, and this would reduce the amount of space required to run the business. The saving in overheads could possibly outweigh the increased cost of products.

Operations:

Business hours are:

Monday to Friday 9.00 a.m. to 5.00 p.m.

The accounting and mail order data base consisting of a central server and multiple terminals running Future Business Systems Harmony software to facilitate all sales operations and customer contact and service.

The company has an international reputation as the largest business of its kind in Australia for the small equipment market. As a result, the company is regularly approached by major manufacturers around the world to represent them in Australia. This represents a major expansion opportunity, and the vendor is prepared to assist in converting these relationships into viable opportunities for the new owner. The vendor has not previously availed himself of these opportunities owing to his pride in Australian Manufacturing and interest in developing new product himself.


Market / Customer:

The company markets its products and services to a wide variety of customers:

1. Hobbyists:

2. Small producers:

3. Commercial: This segment is broken into two components:
(a) Mainstream Layer and Meat Bird production.
(b) Alternative production systems, including free range meat, eggs and organic and exotic production systems.

The most important segments to the business are the top 50% of small producers and the bottom 50% of commercial producers.

The company’s company data base is currently 22,000 customers, with 2,500 new names being added in the last year alone.

The vendor believes that massive expansion is possible, if the business is acquired by a more active owner and the expansion of staff levels.

Products / Services:

The main product is incubators. The company sells five different brands over a range of approximately 20 models, ranging in price from $200 to $30,000, and also does custom built products. The company manufacturers the only Australian branded and developed small incubator, which forms the main core of the business. The company has sold 16,000 of these units since its first production in 1985. Other products include:

• Feeders and drinkers
• Heat boxes (brooders)
• Medications
• Identification
• Nesting systems
• Spare parts
• Egg washing machines
• Egg grading machines
• Books and literature
• Multitude of less important support items.

The business has many exclusive products and agencies as well as representing many overseas companies on a non exclusive basis. In many of the latter cases, the company is the only distributor in Australia.

Full details will be provided to interested parties.
Premises:

The business operates out of two factories of 254 sq.mt. each, which are both owned by the vendor. The business currently pays a rental of $1,500 per month for each factory, and the vendor is prepared to sign a lease at these rentals.

Outgoings are approximately $4,000 p.a. for both factories.

Plant/Equipment / Fittings:

The company has a wide manufacturing capability, mainly due to its desire to make and develop product, which is often then contracted to others.

A full list will be made available.

Management / Staff:

The business is run by the owner and his wife, and one employee working four days a week.
***** ***** ***** *****

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

Property information

Real Estate:

Lease

Lease terms:

To be negotiated

Leasehold rent:

$36,000 per annum

Location:

Industrial Park in South East Melbourne

Premises details:

See Report

Size in square feet:

5,000

Business Operation

Expansion potential:

See Report

Competition / Market:

See Report

Trading hours:

See Report

Employees:

3

Years established:

30

Other information

Support & training:

See Report

Inventory / Stock value:

$400,000

Relocatable:

This business can be relocated.