Computer Retailer with OnLine MailOrder for Electronic Gadgets - Scottish Central Belt, Central, United Kingdom Advert Ref: IU105
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Business description
Established in 1997, this multi-award winning Scottish based company started as a computer hardware, software and complete systems provider as a sole trader and has now moved to a substantial retail outlet in a prime location within a City Centre.
The rapidly developing hand held PDA and GPS market prompted the vendor to enter this sector and quickly established an additional channel to the company as a leading provider of satellite navigation systems and hand held technology products. The excellent supplier agreements enabled this part of the company to be at the forefront to continually ship new models at launch to its clients, thus further establishing itself as a major player in this highly competitive but lucrative market sector. This e-commerce side of the business now trades from a separate leasehold unit on the outskirts of the City, enabling the vendor to continue to grow his market share without restriction
Key Strengths:
The computer retail store is not a low price product supplier. The business is founded on a solid ethic of customer service and higher margins, delivering value added services and technical expertise. It enjoys a prime location in the city centre, within walking distance of major transport links and prime shopping area’s and within easy reach of the many universities on it’s doorstep. It maintains an extensive product offering, including mainstream as well as more niche products, and has access to almost any item available via a comprehensive network of suppliers. The company’s long standing relationships allowing it to buy at extremely competitive pricing. It’s loyal staff are of a high technical level, with a genuine interest in computers and customer service delivery, and the capability to offer advice on equipment best suited to the customer’s needs, supported by regular staff product briefings held in store to maintain a consistent level of product knowledge
The companies strong ethos in after sales support ensures that customers are supported throughout the life of their purchase. The computers which it assembles and sells have a low failure rate due to quality component usage, however, where a fault does occur, the customer can be sure of ready telephone access to a knowledgeable advisor. The company’s expertise in offering custom built systems allows it to pass on important savings to customers, and ensures that systems contain the very latest technology and the most current components available. A vast majority of the business is repeat and enjoys a fantastic reputation as the preferential place to shop.
Being an authorised supplier for various global providers means leads and support from these manufacturers hold it in good stead. The computer outlet side of the business has now achieved ‘repair centre’ status for 2 leading global brands, further increasing the companies profile, market position and revenue.
The company’s capability to sell 24 hours a day via the website enables it to secure a growing percentage of the satellite navigation market, which continues to offer dramatic growth potential
Employees: The current vendor continues to take a central role in the growth and development of both sides of the business, despite being ably supported by a team of approximately experienced and well trained staff.
Trading hours: The retail outlet trades Monday to Saturday from 9.30am to 6.00pm. The e-commerce outlet is manned from 9.30am to 6.00pm Monday to Friday.
Property
Location
The retail outlet takes a prime corner locatiom in the city of circa 1,600 sq. ft. spread over the ground floor and basement. The premises are owned by the current vendor and he is happy to assign a new lease.
The e-commerce trades from a leasehold unit on the outskirts of the City on a small industrial estate, ideally suited to the mail order operation. It has ground floor offices and substantial storage on the ground and mezzanine levels. It has a passing rent of circa £7,500 per annum.
Expansion potential
The business operates in a market where smaller players have been squeezed out as margins are sacrificed for the sake of competition for market share. By focusing on offering higher perceived value service, the Computer business has been able to maintain margin and continue to add to it’s loyal customer base. It see’s 2008 as an opportunity as its reputation grows and smaller players closely located fail to adjust to the market in a timely manner. The satellite navigation market is forecasting 2008 as the sector’s best ever year, as the technology becomes more widely accepted and used, and with in car units becoming almost as standard as the stereo. Accordingly, the directors see significant future opportunity via a number of strategic initiatives. Competition / Market
The business is continuing with the current growth strategy with a commitment to use proven avenues for lead generation, including but not limited to, Yellow Pages, Pay Per Click, industry publications. It also benefits from the finest and cheapest form of marketing, word of mouth recommendation. Consistent growth will be achieved by building on this success. Support & training
Handover and training will be provided. Reasons for selling
Our client reluctantly places this thriving business on the market as he has other business interests that are all proving to be time consuming. Having dedicated all his time to building and growing this business for the last 10 years, he also feels it is important to spend more time with his young family.
The rapidly developing hand held PDA and GPS market prompted the vendor to enter this sector and quickly established an additional channel to the company as a leading provider of satellite navigation systems and hand held technology products. The excellent supplier agreements enabled this part of the company to be at the forefront to continually ship new models at launch to its clients, thus further establishing itself as a major player in this highly competitive but lucrative market sector. This e-commerce side of the business now trades from a separate leasehold unit on the outskirts of the City, enabling the vendor to continue to grow his market share without restriction
Key Strengths:
The computer retail store is not a low price product supplier. The business is founded on a solid ethic of customer service and higher margins, delivering value added services and technical expertise. It enjoys a prime location in the city centre, within walking distance of major transport links and prime shopping area’s and within easy reach of the many universities on it’s doorstep. It maintains an extensive product offering, including mainstream as well as more niche products, and has access to almost any item available via a comprehensive network of suppliers. The company’s long standing relationships allowing it to buy at extremely competitive pricing. It’s loyal staff are of a high technical level, with a genuine interest in computers and customer service delivery, and the capability to offer advice on equipment best suited to the customer’s needs, supported by regular staff product briefings held in store to maintain a consistent level of product knowledge
The companies strong ethos in after sales support ensures that customers are supported throughout the life of their purchase. The computers which it assembles and sells have a low failure rate due to quality component usage, however, where a fault does occur, the customer can be sure of ready telephone access to a knowledgeable advisor. The company’s expertise in offering custom built systems allows it to pass on important savings to customers, and ensures that systems contain the very latest technology and the most current components available. A vast majority of the business is repeat and enjoys a fantastic reputation as the preferential place to shop.
Being an authorised supplier for various global providers means leads and support from these manufacturers hold it in good stead. The computer outlet side of the business has now achieved ‘repair centre’ status for 2 leading global brands, further increasing the companies profile, market position and revenue.
The company’s capability to sell 24 hours a day via the website enables it to secure a growing percentage of the satellite navigation market, which continues to offer dramatic growth potential
Trading hours: The retail outlet trades Monday to Saturday from 9.30am to 6.00pm. The e-commerce outlet is manned from 9.30am to 6.00pm Monday to Friday.
The retail outlet takes a prime corner locatiom in the city of circa 1,600 sq. ft. spread over the ground floor and basement. The premises are owned by the current vendor and he is happy to assign a new lease.
The e-commerce trades from a leasehold unit on the outskirts of the City on a small industrial estate, ideally suited to the mail order operation. It has ground floor offices and substantial storage on the ground and mezzanine levels. It has a passing rent of circa £7,500 per annum.
The business operates in a market where smaller players have been squeezed out as margins are sacrificed for the sake of competition for market share. By focusing on offering higher perceived value service, the Computer business has been able to maintain margin and continue to add to it’s loyal customer base. It see’s 2008 as an opportunity as its reputation grows and smaller players closely located fail to adjust to the market in a timely manner. The satellite navigation market is forecasting 2008 as the sector’s best ever year, as the technology becomes more widely accepted and used, and with in car units becoming almost as standard as the stereo. Accordingly, the directors see significant future opportunity via a number of strategic initiatives.
The business is continuing with the current growth strategy with a commitment to use proven avenues for lead generation, including but not limited to, Yellow Pages, Pay Per Click, industry publications. It also benefits from the finest and cheapest form of marketing, word of mouth recommendation. Consistent growth will be achieved by building on this success.
Handover and training will be provided.
Our client reluctantly places this thriving business on the market as he has other business interests that are all proving to be time consuming. Having dedicated all his time to building and growing this business for the last 10 years, he also feels it is important to spend more time with his young family.
Financial Details
Asking price:
£1,950,000
Sales revenue:
£3,500,000
£1,950,000
£3,500,000