Price Reduced Long Established Melbourne Vinyl Flooring Centre For Sale

Business description

ALL REASONABLE OFFERS WILL BE CONSIDERED

Business Description Summary:

This business is involved in the vinyl flooring market, providing services to home owners, nursing homes and businesses through the use of third party sub-contractors. It also has a retail outlet, which has been in the same position since 1971, and besides providing retail sales, has proven to be a highly visible landmark on a major south east Melbourne road, providing a constant flow of contracts for the contracting division.

The business was established in 1958 and purchased by the current owners in 1993. It is ideally suited to a couple with one party being in the retail shop while the other is released to measure and quote. The business would be best suited to one full time and one part time person. Operating hours are:

• Monday to Friday 9.00 a.m. to 5.00 p.m.
• Saturday 9.00 a.m. to 12.00 noon

Operations:

The company is engaged in the installation and retail sale of vinyl coverings:

• Sheet vinyl
• Vinyl floor tiles
• Carpet tiles
• Linoleum (resurgence in the use of linoleum is occurring with ecologically conscious clients, because it is a naturally occurring product.)
• Rubber tiles

Approximately 70% of revenue is derived from contracting operations with the balance of 30% emanating from the retail operation.

If stock has to be ordered for a new customer, a deposit is paid, varying from 20% to 50% of the full price, with the balance payable on completion. The owner prepares all quotes and schedules all work, which is then outsourced to a panel of layers (sub-contractors). These sub-contractors are a very important asset of the business, as their workmanship and conduct determines the reputation of the business. There are six main sub-contractors who are regularly used, with many other smaller operators available. The quality of this panel has been built up over the years by retaining the services of the best and eliminating unsatisfactory performers.

Market / Customer:

Most customers are locally based and attracted by the retail shop and by the substantial reputation and word of mouth referral system that has built up over many years. The operation could be duplicated in other areas of Melbourne, should the new owner decide to adopt an expansion policy.

The reputation of the business is such, that repeat customers are very important and some customers have returned after as long as 25 years since the original installation.

There is very little competition in the local area, and the business has concentrated on being a specialised service, rather than the more general floor covering businesses that cannot provide the range and expertise. Major retailers such as the likes of Harvey Norman are significant sources of referrals.

Premises:

The current lease expires on 30 April 2012, and there are three, three year option periods. Current rental is $900 per month and the extent of the shop is 115 square metres. There are two parking spaces behind the building for the owners’ vehicles, and ample on street parking for customers.

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

Property information

Real Estate:

Lease

Lease terms:

1 year to run with 2 x 3 options

Leasehold rent:

$11,000 per annum

Size in square feet:

115 Sq Metres

Business Operation

Reasons for selling:

Health

Trading hours:

• Monday to Friday 9.00 a.m. to 5.00 p.m.
• Saturday 9.00 a.m. to 12.00 noon

Employees:

1

Years established:

1958

Other information

Support & training:

Generous

Inventory / Stock value:

$40,000

Relocatable:

This business can be relocated.