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Esteemed Trailer Manufacturing & Servicing Business - AF1546
Summary
Not a contract milk run. Owns 500+ workplace customers, sets its own retail prices and chooses its suppliers. Under management. $3m revenue, 49% gross margin. Rent-free depot. 30 years trading.
Revenue
$3,000,000 pa
Rent
$0 pa
Net Profit
$750,000 pa
Location Details
Northern Melbourne & CBD
Services workplaces across northern Melbourne and the CBD from a single, stand-alone depot with cool-store, truck storage and office facilites. Exact location disclosed on signing a confidentiality agreement.
Potential
Growth is available inside the existing model. Tea is not currently offered and can be added to existing deliveries. Coffee is only 0.3% of revenue. Pricing headroom has been identified. Online ordering is not yet used across the full customer base. More customers can be added to existing rounds at little extra cost, as each delivery is mostly vehicle and driver time. Two institutional contracts were won with no sales role; a buyer that pursues more can repeat this. Beyond this: in-house fruit packing and new regions.
Skills
The manager, accounts clerk and drivers carry the day-to-day work. Ordering, invoicing, delivery tracking and driver scheduling run on a single online platform, with no custom software to maintain. The owner role is oversight of finance and operations. A buyer that moves premises or changes milk supplier may need its own dairy licence and food-safety program.
Hours
CBD served five days a week, overnight. Orders placed by 2pm are delivered the next day.
Lease
Rent-free sub-lease from the milk supplier, no outgoings. Continues for a buyer that keeps that supply.
Employees
10 staff: full-time manager, remote accounts clerk (32 hours a week) and eight drivers. Drivers and clerk paid above award. Average tenure five and a half years; longest-serving driver close to 12 years.
Reason for Sale
The owners are semi-retired and wish to step back fully.
About the Business
Not a contract milk run. This Melbourne business owns its customers, sets its own retail prices and chooses its suppliers.
WHAT IT DOES
Supplies fresh milk, plant-based and long-life milk, fruit boxes and coffee to 500+ workplaces across northern Melbourne and the CBD: offices, factories, childcare centres, car yards and schools. 700+ deliveries a week on fixed rounds from a single depot.
HOW IT WORKS
The same driver services the same site week after week. Drivers hold building and after-hours access: they let themselves in, stock the fridge and rotate stock, without the customer present. Every delivery carries a separate delivery fee. Orders are managed on a single online platform.
WHY IT IS DIFFERENT FROM A MILK RUN
- It owns its customers. They are its accounts, not a processor's.
- It sets its own prices. Products are sold at retail prices, with a separate delivery fee on every drop.
- It chooses its own suppliers.
- It is under management. A manager, accounts clerk and eight drivers run it day to day.
KEY FACTS
- Price: $2.8m
- Revenue: $3m
- EBITDA: $750k
- Gross margin: 49%
- Customers: 500+; largest customer 6% of revenue; top 10 together 17%
- Two institutional contracts, won without a sales role
- Premises: depot and cold storage provided rent-free by the current milk supplier; transfers to a buyer that continues that supply
- Fleet: eight refrigerated vehicles and one ute, included
- Staff: average tenure five and a half years
SUITS
Delivery, food service or office-supply operators, or an investor seeking a business under management.
Information Memorandum available on signing a confidentiality agreement. Contact Jim Shergold (0418 861 992) or Scott Williams (0436 604 173), MCA Corporate.
History
Founded over 30 years ago as a conventional milk run: high volume, low margin, wholesale pricing. About 15 years ago the owners declined their supplier’s move to a franchise model, changed supplier, shed low-value contract work and moved from wholesale to retail pricing with a focus on workplace customers. A CBD distributor’s customer list was acquired. Ordering moved online early, and systems now carry the administration. The business is run day to day by staff; the owners have moved to oversight.
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