Price Reduced Online Customised And Innovative Accessories Retailer For Sale

Business description

Business Description Summary:

The business was started in 2002 as one of the first Australian on line retailers of wallets and accessories. The business offered for sale merchandise under designer labels such as Gucci, Fendi, Mont Blanc, Prada and others, as well as an own branded product. Stock was not maintained and all deliveries other than home branded products and some accessories were delivered directly to customers by agents of the manufacturers. After a few years the manufacturers of the recognised brand names changed their policy to refuse to supply third party sellers. The business concentration then shifted to its proprietary products.

In 2005 an opportunity arose to add silicone wrist bands, which was the boom product of the times, to the product range. The success of this addition led the owners to expand the range of products being offered to retail customers. This expanded range led naturally to the sale of the merchandise to the ever growing promotions market, and this has become the primary nature of the business today. The business caters to the bulk supply of innovative custom designed products for the advertising and promotions market.

The vendors believe that there is significant scope for expansion as they have neglected the business in favour of their other interests
Operations:
The company has approximately 15 suppliers of which 5 only are currently active, making for efficient ordering, control of merchandise and stringent risk management. 80% of purchases come from the top two suppliers, but this does not represent a threat, as the organisations are mass suppliers to retailers all over the world.

Stock items are quoted with a price on the website for immediate ordering & prompt delivery, while personalised and customised items go through a quotation system referred to the factory by the business, and passed onto the client when received. All information is captured in the online system, which converts all currencies, provides for GST and automates all formatting which makes finalising quotations and orders effective in terms of time and labour.

Roughly 20% of business is repeat business, and can be increased by implementing a more pro-active / incentive driven referral program.

The business processes 15 to 20 quotes on average per week and the average order size is in excess of $1, 100. The current quote to sale conversion ratio is over 13%.

Market / Customer:

The company promotes its product offering, mainly through its own website, and also receives many orders through word of mouth recommendations. The site is very well optimised for recognition by Google and other leading internet search engines, and constructed to make navigation, product selection and leads the customer easily to the e-commerce shop, where placing of orders is facilitated. The owners believe that the investment in search engine optimisation is worth around $50,000, if it were to be undertaken by consultants. It was implemented by the owners after many years of research and implementation.

Customers are divided into two groups:

1. End customers: Businesses, some individuals, schools, charities,
religious groups, sporting clubs and many others.

2. Dealers who sell to their own customers. In this case, the profit margin is lower than End Customers, but only represents approximately 20% of sales.

End clients include Google, Coca Cola, Dept of Defense, Australian Electoral Commission, Telstra, Macquarie Bank and many religious groups/charities.

Products / Services:

The company offers for sale approximately 20 – 30 categories of promotional & branding, identification & security, new concept and fundraising products covering between 200 and 300 products, many of which are very similar.

The main product categories are:

• Wristbands
• Lanyards
• Key Rings
• ID Holders
• Wallets and bags
• Drinkware
• Novelty and fun
• Office and desk
• Head wear
• Clothing accessories

Premises:

The business operates out of 80 square metres in a very small shopping strip in a largely residential area. There is a lease expiring in April 2012 with one two year option to renew. Rent is $250 p.w. + outgoings.

The business could be run from home, provided there was a small space available for storage of product, which is not despatched directly to clients by the manufacturer.

Management / Staff:

The business is run by the two owners with no other employees. Both have other business interests. The combined commitment to the business is 2 to 3 hours a day.

The official operating hours of the business are 9.00 a.m. to 5.00 p.m. Monday to Friday.

***** ***** ***** ***** *****

To receive ADDITIONAL INFORMATION on this business, please contact below.

Property information

Location:

Can be re-located anywhere and can be run from home.

Premises details:

See report.

Size in square feet:

800

Business Operation

Expansion potential:

See report.

Reasons for selling:

Other business interests

Trading hours:

2 to 3 hours a day, 5 days a week.

Employees:

Nil. See report.

Years established:

9 years

Other information

Support & training:

As reasonably requested.

Furniture / Fixtures value:

$3,500 (included in the asking price)

Inventory / Stock value:

$15,000

Home based:

This business can be run from home.

Relocatable:

This business can be relocated.