Summary
This well-established automotive parts and materials recovery business has been operating successfully for over 70 years and holds a strong position within its local market.
Net Profit
$306,000 pa
Location Details
SOUTH WEST WA
Potential
This business currently does not sell online. Most other similar businesses utilise an online E-commerce system, that allows customers to buy through this platform, significantly expanding the business’s customer base.
Reason for Sale
The current owners are looking to retirement to enjoy the fruits that this business has provided them over many years.
About the Business
The business specialises in the acquisition, processing and resale of vehicle components, supplying a diverse and repeat customer base that includes trade buyers, mechanical workshops and the general public.
Supported by the consistent demand driven by ongoing vehicle turnover, the operation generates reliable cash flow and offers clear opportunities for expansion under new ownership.
The business is priced at $565,000 plus a new Toe/Tilt Truck $200,000. A new Owner can replace the new truck with a less expensive truck that would meet the businesses needs
This business has been servicing the South West market for some 70 years and during most of that time the demand for its products and services has exceeded the Business’s capacity to produce.
With very little sales or marketing effort turnover has continued to grow year on year, purely through reputation and word of mouth.
This comprehensive range of services, including accessory sales, vehicle repairs, towing, and sourcing makes us a one-stop shop for all automotive needs in the region.
An impressive a large customer base of over 10,000 customers, of which repeat order clients represent approximately 50% of total. Our biggest customer represents roughly 2% of yearly sales and has maintained a long-standing trading relationship with us.
Key Takeaway Features
Established Customer Base: A loyal and repeat customer network ensures steady revenue.
Prime Location: Accessibility and visibility can enhance sales and attract walk-in customers.
Comprehensive Inventory: A large, well-maintained stock of quality inventory.
Profitable Operations: Proven profitability and positive cash flow demonstrate a sound investment.
Room for Growth: Opportunities for expansion, such as adding an E-Commerce platform and new services.
The number of motor vehicles on the road influences demand for these products. Growth in the number of motor vehicles boosts demand for maintenance services, increasing the need for these products. As more cars are driven on Western Australian roads, the probability of breakdowns rises, rallying industry demand.
Growth in the average vehicle fleet age implies that it comprises more older vehicles, which often require more maintenance than new vehicles. Used vehicle owners are likely to repair rather than buy new, benefitting the industry.
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