Unique Musical Instrument Online Retailer With Worldwide Clientele For Sale

Business description

A large investment was made in designing and implementing a new e-commerce website with integrated social media in 2010. A new level of spending on marketing began at the same time. This brought a rise in sales of 36.7% in the first quarter over 2010, tapering off a bit in the second quarter, resulting 31.7% above 2010. Projected (not guaranteed) sales for 2011 are $1,365,000, and are currently on pace to exceed this goal. Perhaps the most surprising 2011 sales statistic is how monthly sales are much more consistent at this higher level – the wide monthly sales swings of prior years have been replaced by consistency at a much higher level.

Typically between 88% and 95% of monthly sales come from e-commerce and telephone sales.

This business has recession-proof characteristics having maintained sales above one million for all of the last three years. As most businesses in the industry were content to have “only” 10% to 20% declines in revenue, this business maintained sales. Why? In addition to a wide selection and devoted customer service, this businesses niche is still new enough that those players who need to add amplification to their existing equipment will find the funds to do so. The recession was used to improve all aspects of the business. Also, ordering for non-US shoppers has been made easier and sales to foreign buyers reliable and rising.

Property information

Real Estate:

Real Property Included

Lease terms:

Business seller owns the property and will sell or lease.

Leasehold rent:

$31,200 per annum

Location:

High end strip shopping center

Premises details:

The commercial property is for sale. The asking price is $345,000 based upon current local cost per square foot comparables. The commercial property is NOT included in the asking price of the business.

This business is located in an upscale strip shopping center featuring ample parking. The 1512 square feet is adequate for current and future operations leveraging an off-site storage/warehouse facility.

The space is currently configured with access to a complimentary business. Seller intends (at sellers expense) to make required upfit modifications to separate the spaces upon closing. This is an anticipated contingency.

Size in square feet:

1,512

Business Operation

Expansion potential:

The electric stringed instrument market continues to grow. This business has maintained modest growth in spite of the great recession.

The companies list of clients includes many professional musicians that sell millions of albums annually. Several bands and players on the client list will likely be familiar.

The company has and continues to invest heavily in online marketing. A measurable ROI is being generated and additional focus and investment in this areas should prove to continue to provide strong results.

Competition / Market:

Perhaps one of the most intriguing attributes of this business opportunity is that competition is relatively limited. Essentially a niche within a niche. There are several national and international players in the market, but the owner feels that they are able to successfully differentiate themselves by providing a high level of experienced and personal customer service. In a recent peak season there was not one single return - including all sales made online and via phone.

Reasons for selling:

Seller is interested in pursuing other opportunities.

Trading hours:

M-F 10-6pm EST

Employees:

5

Years established:

2002

Other information

Support & training:

Seller will provide adequate transition assistance.

Owner financing:

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

Financing available:

Seller will provide financing as required by the SBA. Inventory price will be actual at cost at time of sale.

Furniture / Fixtures value:

$10,000 (included in the asking price)

Inventory / Stock value:

$225,000

Lease asking price:

$345,000 (Furniture / Fixtures included)

Relocatable:

This business can be relocated.