Transport & Removal Niche Market For Sale

Business description

This removal business operating mainly in a specific niche market, was established by the current owners in 2005. One of the owners has a long history in the transport/removal industry, going back over 15 years.

Up until August 2007, all driving was done by the vendor, until the purchase of the first Isuzu, which led to a quantum increase in business and the purchase of the third truck, and the employment of sub contractors to cope with the driving.

The business has shown strong growth, even through the recession, which influenced the vendors to purchase a new truck into 2008. Originally the business consisted of 80% work for commercial customers, delivering their product along the east coast (Melbourne – Canberra – Sydney). With the advent of the recessionary economic conditions, corporate business started to decline and the company concentrated its marketing efforts on domestic work, mainly through its website. As a result, during the “recession”, figures showed:

• Corporate 40%
• Domestic 60%

Corporate business is once again on the ascendancy, and is expected to climb back to its pre-recession levels, which together with the recently acquired domestic sector, will make a significantly positive impact on sales and profits.

The customer base of corporate customers totals about 150, with 20 – 25 active at the moment. New customers are being acquired constantly, mainly through word of mouth referrals.

The main items transported for corporate customers are:

• Office furniture
• Outdoor furniture
• Billiard tables

The business has a very loyal customer base, which has been achieved through excellent service and diligent communication with clients, keeping them up to date on progress of their order.

The company’s major customer has recently acquired a new division, which will result in increased turnover with this customer.

Expansion possibilities include:

• Extending the route to Brisbane
• Employment of a sales representative to solicit additional corporate customers, as well as increase the penetration of the domestic market by better follow up of the leads generated.
• Local removals
• Additional routes
• Promotion and development of website
• Pursuit of the local business of the major client

Operations:

The business is operated from a home office with only occasional use of storage facilities, with one unit currently being rented for $300 p.m.

Plant/Equipment / Fittings:

The main fixed asset of the business is the fleet of trucks, which consists of:

Year Make Capacity Cost Value
2008 Isuzu 2 Axle 58 Cubic Mtrs $150,000 $ 80,000
2007 Isuzu 3 Axle 65 Cubic Mtrs $180,000 $100,000
2002 Hino 2 Axle 50 Cubic Mtrs $105,000 $ 30,000

All vehicles are meticulously maintained and serviced and are kept in excellent condition. Sundry equipment such as pads, blankets, trolleys and uniforms are valued at about $10,000. The fleet is more than adequate for the requirements of the business, and turnover could easily be doubled without further investment in trucks.


Management / Staff:

The vendor is involved on a full time basis, and attends mainly to local pick ups, quotes and general management, including:

• Sales calls to regular clients (mainly commercial)
• Load organisation
• Enquiries from drivers/clients
• Local pick ups
• Following up leads for domestic work generated by a professional marketing company. This is currently done by email and a win ratio of 10% to 20% only is achieved. The vendor believes that this ratio could be increased to 60% to 75% of leads, if the leads were followed up personally rather than by email.

The business uses the services of two dedicated drivers who are both paid as independent contractors as well as permanent casual labourers to assist with loading and off-loading trucks.

The business operates six days a week.

A generous hand over period will be granted.


To receive additional information on this business, please contact Steve Lentin:


Telephone (03) 9569 2883
Fax (03) 8677 0868
Mobile 0419 910 099
Email stevel@accordbrokers.com.au.

Property information

Location:

relocatable

Premises details:

Home Office

Business Operation

Expansion potential:

Good

Employees:

Contractors and Casuals

Years established:

2005

Other information

Furniture / Fixtures value:

$10,000 (included in the asking price)

Home based:

This business can be run from home.

Relocatable:

This business can be relocated.