Fully describe the business's activities?
Supply, manufacture and installation of bathroom equipment such as shower cubicles, frameless glass applications, doors, sanware and taps. Dedicated installer team in place. Work undertaken for developers in large clusters as well as exclusive estates. Suppliers of bathroom requirements as specified by developers and architects to contractors. A very well presented showroom with over the counter sales open to the public generates sales and installations too.
How long has the business been established?
How long has the owner had the business?
16 Years in George (Started in Cape Town)
How does the business operate on a daily basis?
The Owners have separate responsibilities within the business. The one Owner focuses on the field requirements of the business and oversees the installations, handles quotations and staff management etc. The other Owner handles all internal staff and administrative matters, stock management etc. The business has installation teams and showroom sales assistant/receptionist.
How are the clients attracted to the business?
Referrals from contractors and developers. Architects also refer clients to this business and specify product on domestic house plans. Showroom on busy main road in town center. Sole distributors in the region for certain product ranges. Referrals from other sanitary ware suppliers. Long established business with unique product range.
What Advertising/Marketing is carried out?
The showroom is an important part of the marketing of the business as it is open to the public and products are also available through numerous supplier catalogues if exclusive product is sought.
Does the business have any contract work?
Yes, although not signed agreements, they are favoured suppliers to numerous contractors and developers as well as to upmarket home estates.
What competition exists?
There are competitors who do operate predominately at a lower market level. However, not at the level of this business, and not those who have showrooms of this nature supported by installation teams.
What are the seasonal trends?
A very high contribution over the November/ December period contribute significantly to the sales. Also influenced by property development and contractor busy periods. Ongoing lucrative development opportunities as new projects come on line.
Is the business VAT Registered?
What VAT documentation is on file?
Vat returns are available.
What Balance Sheet and Income Statements are available?
Year end 2019.
What percentage of the business is cash/credit?
Approximately 20% of total sales are credit card, the remainder mainly EFT transactions, apart from very limited cash sales over the counter. Low credit card interest rates are in place.
How could the profitability of the business be improved?
Product and installations extension into other allied areas such as bathroom re-vamping and tiling, which they are often requested to undertake but not a core part of their business.
What is the total staff complement?
6 staff excluding the Owner.
Do any receive special perks or incentives?
Basic plus commission structure exist for installation team and showroom assistants.
Are they on contract?
Do any have management potential?
Yes, if so required.
How involved is the Owner in running the business?
Both Owners are actively involved on a day to day basis in their respective areas of responsibility.
Give a breakdown of staff/functions/length of service?
Owners started this business 16 years ago and have been in their current premises for 14 + years now.
When does the current lease end?
Ongoing month by month, but a new owner will be given a lease.
Is there an option of renewal & what period?
Yes, subject to negotiation.
What is the annual escalation %?
What are the trading hours?
Monday to Friday 08-00 to 5-00pm
What is the square meters of the business?
Showroom and office 165sq meters; store room / receiving 261 sq meters. Receiving area is low rental and offers other allied business potential.
Do you require a licence?
What lease deposit and/or other surety is required?
1 months rental deposit, subject to negotiation
Are any items not included in the sale?
Yes, one vehicle and the laptop computer are not included.
What is their overall condition?
Do any require repairing?
How have they been valued ?
Owners second hand estimated value.
What are their settlement amounts?
2 printers on rental.
Will Seller settle or Buyer to take over?
Buyer to take over.
Are they presently insured?
Is a full asset list on file?
Strength is their strong and long term presence in the market. There are no direct competitors offering installations or showroom facilities and catalogue sales as this business does. Excellent location on main street and next to an allied support business which assists with store traffic. Sole distributors for certain ranges. Complete installations for the other suppliers of bathroom products. Showroom facility open to public. Architects specify high-tech products.
There are no obvious weaknesses to the business if Owner is actively involved.
Re-do the showroom to add in more product offering. Opportunity exists to extend the installation business to bathroom revamping and tiling as an addition to the shower installation. Natural extension into aluminium windows and stacker doors / pool areas. Installation of swimming pool partitions, especially glass walls etc has been undertaken upon request.
Although other outlets do sell similar products there are no other installation operators with showroom facilities in competition to them.
What is the reason for the sale?
The Owners have grown this business substantially since inception over 16 years ago, and now wish to pursue other interests.
Why is this a good business?
Well established, with niche market representation, well presented showroom, and sole distribution of certain ranges supported by local developers and architects. There are numerous changes and product development within the sector and this business is at the forefront of this. Much of the work is for contractors and is in the premium income sector. Range caters for wide customer base and only business of this nature in the area. Proven track record after 16 years of trading.
What is the price plus stock and the profit?
The price is R2.850 Mill and the average monthly profit is R88,000 after Owners drawings of R46,000 are taken from the gross. Stock fluctuates around R200K to R400K but a deposit is taken before commencement of work.
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million