Network Technology Internet Retailer For Sale

Business description

This outstanding seven year old web based network technology retailer is a supplier of Ethernet, Fast Ethernet, Wireless Ethernet, Gigabit, Firewalls, Security, Voice Over IP (VoIP), Virtual Private Networks (VPN), Remote Access and Network Management.
They specialize in 3Com NBX products and also have a large inventory of new and used 3Com, Extreme Networks, Cisco, Nortel and SuperStack equipment.
At present all of the sales are generated either directly or indirectly through their website. 50% of the business is a result of online orders and the other 50% comes from requests for quotes due to online traffic.
The company operates very efficiently with minimal staffing in a relatively small amount of square footage. Add to that that 60% or more of the sales are of refurbished used parts and it is no wonder why the net margins are so high.
The used parts are refurbished and repackaged by a staff member on site.

Property information

Real Estate:

Lease

Lease terms:

The company currently occupies 2,500 sq ft in a coastal location that costs them $3,000 a month. They are on a year to year lease that expires 4/09.

Other information

Expansion potential:

Growth is very achievable by expanding the number of SKU’s that are carried and incorporating additional manufacturers that they represent. The size of the buys could very easily be expanded as well, whereas the company now rarely buys more than $10,000 of product at any one time their competitors will commit $200,000 to a buying opportunity.

Competition / Market:

There is significant competition for the sale of any new parts, but where the company has an edge is in the sale of refurbished used parts. The margins are not only greater but in a down economy the demand also increases to about 60% or more of total sales.

Support & training:

4 weeks @ 30 hours per week

Reasons for selling:

Pursue Other Interests

Trading hours:

9 - 5 Mon - Fri

Financing available:

TBD

Furniture / Fixtures value:

$10,000 (included in the asking price)

Inventory / Stock value:

$150,000 (included in the asking price)