Sporting Goods Internet Retail Roadshows Business For Sale

Business description

This is a full line sporting goods business that provides value to the customer by offering a variety of lower priced closeout and used equipment, in addition to current inline product. The business makes use of all available sales channels including a prime location brick and mortar retail store, online sales channels such as eBay, Amazon, and websites, mobile stores that travel to ski swaps around the northwest, and a growing wholesale business. The business has a rather unique market niche with its combination of off-priced closeout product and used equipment. This allows the business to operate at significantly higher profit margins than a typical retail sporting goods store. The online sales channels offer an infinite customer base and therefore an unlimited potential for growth.

Property information

Real Estate:

Lease

Lease terms:

The main store is 6789 sqft, and the rent is $7200/month plus NNN. The warehouse is 15,000 sqft, and the rent is $1500/month plus NNN. NNN at the store will be around $800, and the warehouse will be around $400. A 5 year lease with 5 year options on both. Lease to be terminated if zoning issues ever arise that make it unusable for its current purpose. Annual increases on the store of $100 per month, and $50 per month at the warehouse.

Owner would consider selling both properties.

Leasehold rent:

$104,000 per annum

Location:

Winter and summer sports!. One of the most beautiful areas in all of the Pacific NW.

Premises details:

The 6780 sqft retail store was built in 2005 specifically for this business. There is 5000 sqft of retail space, with 1780 sqft of shop, storage and office space. The business includes a full ski shop complete with two snowboard belt grinders, a ski combination belt and stone grinder, a belted hot wax machine, plus assorted binding jigs, vices and hand tools necessary for working on ski and snowboard equipment. It also has a bike shop, complete with the tools required for working on and assembling bikes.

The 15,000 sqft warehouse is an older fruit storage building. It has 1200 sqft of office space, and additional 3800 sqft of environmentally stable shop space and storage area., and 9000 sqft of storage space. A forklift is available for use at the warehouse for moving around equipment and unloading trucks. The online business is run completely out of the warehouse, and inventory for the mobile stores going to ski swaps is also staged there. There are potential zoning issues with the warehouse.

Business Operation

Expansion potential:

There is potential to double the sales at the retail location by simply getting an aggressive manager in place. The new General Manager could be that person, but a motivated owner operator is always the best. That is the reason they are not already doubled. The company is undergoing a complete software facelift that will automate most of the functions of selling online. This will significantly reduce the administrative overhead for processing orders and providing customer service. The two websites are undergoing extensive redesigns to modernize them and make them work with the rest of the new software. This should position the company to see huge increases in its online business. The business can also increase sales simply by increasing its supply line. This was proven in 2010. This can be done by seeking out more sources for used product, and by sourcing your own brand of product direct from the manufacturer overseas. The company is making some progress in this direction. An untapped opportunity awaits us in the drop shipping market. The new websites and software will position the company to easily implement a drop ship business channel.

Competition / Market:

The business is more resilient than most others in a suffering economy. At the same time there was a lack of sales in more expensive inline product, there were record sales in the off priced and used product. The challenge for the future will be to continue sourcing off priced product and maintaining the pricing advantage. Getting cheap new product becomes difficult in a poor economy. As the economy contracts, the manufacturers do not overproduce like they do when people are spending more money. This makes it more difficult to source product. At the same time, it also weeds out much of the small guys that this business competes with, because they can’t get product. Our larger size and long time relationship with our vendors put us in a position to get what product is available before many of the newer and smaller companies. This is where sourcing from overseas could also provide an extra advantage over other companies. The tightening economy had little affect on the availability of used product. The internet will continue to grow in both sales and competition. The new Core Sense software and websites should secure a competitive advantage for the foreseeable future.

Reasons for selling:

During the last 17 years owner has lost his dfrive and passion for the business. Business needs someone with energy and passion to take the business to the next level. Owner will provide compelete training.

Trading hours:

9:00 - 9:00 - seven days per week.

Employees:

9 full time, 25 part time

Years established:

1994

Other information

Support & training:

The amount of training I will provide is negotiable. I am dedicated to ensuring the success of the new owner. The amount of time required from me personally will be somewhat dependant on the knowledge of the general manager at the time. Remember, I was essentially an absentee owner for much of the time, so the business is nearly capable of running itself with a trained staff, and then all the new owner needs to know can be learned from them. An item I consider it essential for a new owner to get from me would be the spring ski buying trip. I should be responsible for organizing all aspects of that trip. The new owner should travel with me to do pickups and be personally introduced to all of my clients. Maintaining a relationship with them is critical element of the business. I would be willing to accompany the new owner to the SIA show in January to source off-priced product and meet vendors, but this would not be something I consider essential. Beside these things, I believe spending a few hours per day at the business for about month should be more than sufficient. I would remain available to answer any questions by phone for an indefinite time.

Owner financing:

Owner financing is available. Please contact the seller for more information.

Financing available:

Some financing possible for an experienced owner with good credit.

Furniture / Fixtures value:

$150,000 (included in the asking price)

Inventory / Stock value:

$1,000,000