Highly Profitable Independent Bathroom Retailer For Sale

Business description

Highly profitable independent bathroom retailer specializing in direct sales to the residential market

Established in 2001, by the current Owner following a very successful career with one of the UK’s leading bathroom retailers and a number of building companies, in just five years this business has rapidly grown to become one of the largest operators in the South East. Specialising in the supply and fit of bathrooms this business also operates within the fitted kitchen sector.
Unlike most operators in this sector, this business has no retail premises – choosing instead to conduct its business operations where it is at its most effective – in the homes and perhaps more importantly in the bathrooms of its customers and potential customers. This business has developed a very successful operating formula – involving very highly targeted door-to-door leaflet drops into areas known from previous data analysis to be saturated with high quality prospects. Respondents are driven to a sub contracted Call Centre where leads are forwarded on to a number of highly motivated, self employed salesmen for conversion. Without any of the large scale overheads normally associated with a business of this nature, prices are extremely competitive resulting in very high levels of conversion. Furthermore without the necessary confines of a retail outlet for the display of goods, this business is free to operate anywhere within the UK market – subject to the appropriate demographics. Although the business operates nationwide , it currently concentrates primarily within the South Eastern corner of the UK, certain areas of London and within the M25.
Despite offering the most competitive prices possible this business specializes in providing the highest levels of service and the highest quality goods – with almost all of the well known brand names available. Sales staff are fully equipped with a wide array of samples and product literature for all features of a bathroom including the full range of furniture, showers, taps, bath panels etc – and expertly guide a customer through all aspects of a bathroom project during a two to three hour consultation. All aspects of a project are undertaken including flooring and wall tiling – all carried out by a team of highly professional, expert and experienced sub contractors, many of which work for this business on an exclusive basis.
With an excellent reputation, almost unlimited product range, extensive product knowledge together with high levels of customer service – and minimal overheads, this is a unique proposition within this sector. With turnover in excess of £5m generating pre-tax net profits of £322,583 this is also a significant investment opportunity generating substantial returns. As an alternative to the sale of the entire shareholding of the business for £995,000 the Owner is prepared to sell exclusive operating areas throughout the UK for sums ranging between £25,000 and £50,000.

Customer service:
This business prides itself on the high levels of personal service it offers. Sales staff have built up many years of experience in the sector and are perfectly placed to provide practical advice and assistance to the highest level when required. Very friendly, even the least knowledgeable and technically accomplished customers feel relaxed when buying from this operation.
It has established an excellent reputation amongst its customers for after sales service. Working only with the most professional of sub contractors who are responsible for billing the customer directly for the costs of installation, every job is completed to maximum customer satisfaction. In the unlikely event that anything should go wrong with a customer order it is immediately rectified to the customer's satisfaction.
Key strengths:
Operating in one of the less competitive home improvement markets the business model developed by this company and refined from many years experience of the sector contributes significantly to the success of this business. Detailed analysis of geographical areas ensures that this business markets only to demographics known to respond to the business offering. Highly targeted, price led marketing materials generate significant leads converted by highly motivated, experienced and knowledgeable, self employed sales staff. Potentially able to represent any manufacturer, materials are ordered direct and delivered direct to site for installation by highly skilled bathroom fitters – responsible for their own workmanship and tightly controlled by the necessity to do a good job or risk non payment by the customer.
Without the necessity for expensive showrooms, stock, sales staff etc this is a very low overhead business. Consequently prices are very competitive whilst still offering sizeable margin opportunities. Sales conversion rates as high as 1 in every 2.2 leads generated, provides significant volumes of work – and very significant profits.
This is a very portable business. Although test marketing has taken place nationwide, operations to date have concentrated mainly in the South East. This business could easily be rolled out anywhere within the UK – wherever the correct demographics are evident in sufficient volumes.

Property information

Location:

As a business without staff, without stock or the requirement for displays this business has little need of formal premises, relying on two small lock ups for the storage of the odds and ends frequently left over from a bathroom installation.

Other information

Expansion potential:

There is an excellent opportunity to build on the existing base of this company. With a strong demand for services and capacity to increase turnover, a new owner would contribute fresh ideas and outside influence to build on an excellent base.

This business has developed a proven business model that to date has been rolled out in only a small part of the UK. Gradually expanding out from its base in the South Eastern corner of the UK, this business has already tested other areas. There is no doubt that this business can be rolled out throughout all areas of the UK where there are sufficient volumes of the correct demographics.

Competition / Market:

Having tested all of the various direct marketing techniques available including telemarketing, this business concentrates its efforts where it has an established and very successful track record – highly targeted door to door leafleting. This business also benefits from strong word of mouth recommendation testimony to the high levels of customer satisfaction this business generates.

Support & training:

The current Owner is happy to assist with a full hand over and all the training required to ensure a smooth transfer of the entire business to new Owners and provide a full support package to those purchasing individual areas.

Reasons for selling:

This is a genuine retirement sale