Self Video Business For Sale

Business description

Bag A Business is delighted to offer this unique opportunity to acquire the 24 Self Video trading rights of the Manchester city centre postcodes. The concept was introduced to the city centre in November 2004 and now has membership in excess of 4000. 2006 annual turnover was in the region of £105,000. The business has been left to run itself for the past 12 months, as the owner has followed other business interests, and is subsequently now just ticking over. It is because of these other business commitments that this business is for sale. The potential for expansion is therefore massive from a sound base. Running costs are extremely low, with rents, rates power and telecoms amounting to approx £1,300 per shop per month. At present the shops are staffed 4 hours per day 5 days a week (for new memberships and explaining how the shops operate). A film cannot be rented unless a member has sufficient credit on their card. The website allows online viewing of stock. There is massive potential to diversify as 99.9% of turnover is on DVD rentals. The business currently has a DVD stock of approximately 2,000 and there are no other DVD rental shops in the city centre.
Business Potential
Manchester city centre is rapidly expanding with 1,000s of new apartments being built, as well as many new businesses (large and small) relocating to Manchester. The shops are ideally placed to capitalize on city dwellers renting property. 90% of members live in the city. There is tremendous scope to increase business by offering a delivery service to office blocks, to tap into the market of people living outside the city, but who would not have time to come to the shop to pick up films during working hours/ do not have a local rental outlet/ want to chose a film for that night. The online booking system would facilitate this. Stand alone DVD dispensing machines are also available for the hire or sale of films in corporate headquarters, near hotels within newsagents and the larger residential towers are also available. These work with credit cards. There is also potential to open further shops as the city centre expands, for example Piccadilly and Salford Quays. Hire prices are very competitive.
There is plenty of scope for a new owner to stamp their own mark with the type of films offered. The Deansgate shop currently holds approx 1200 films (could hold up to 3,000) Ancoats c 800 (1200). There are no Bollywood films in stock. There is scope to sell ice cream and or to cross sell other products and offer special offers on other products given the locations of the shops and the fact that there is a data base with approximately 3,000 email addresses. This is a unique opportunity to acquire the ultimate in convenience entertainment retail, in such a prime location, and as such early discussions are highly recommended. This would suit, as well as individuals seeing the business potential, established businesses wishing to diversify/cross-sell.

Property information

Property:

Leasehold

Lease terms:

Leasehold - Deansgate store
Original length: 10 years
Remaining length: 7½ years
Review every: 5 years
Rent: £7,000 per annum
Leasehold Great Ancoats Store:
Original length: 10 years
Remaining length: 8½ years
Review every: 5 years
Rent: £7,500 per annum

OFFERS INVITED

Living accommodation:

Property Details Two ground floor, lock-up retail premises in prime locations within Manchester city centre, Both sites have unique Self Video shop fitting, which can be dismantled and relocated if required. • Secure automatic door entry system • Tiled flooring • Contemporary decor and steel clad walls • 4 ordering/dispensing terminals • Separate counter with shutters Ancoats air conditioned

Location:

24 Self Video is an exclusive business offering 24 hour DVD rental. The business has a trading monopoly on the city centre postcodes of M1, M2, M3 and M4 . Shop 1 is located on Deansgate in Manchester and shop 2 is on Ancotes Street, surrounded by city centre flats, both are lock-up premises and have contemporary shop fittings, and consist of fully automated film dispensers allowing a DVD to be borrowed or returned at anytime. The shops run on a smart card system. To obtain membership, credit needs to be put onto the card initially by credit/debit card thereafter it is a pay as you go system. Members can top up credit over the counter when the shops are staffed, or by cash (notes only) via the machines 24 hours.

Other information

Expansion potential:

Very low operating costs especially for a major city centre

Trading hours:

Open 24 hours for self-service DVD rental Staffed to suit new owner