Asking Price: $ 235,000
Type of Business: Wholesaler of energy supplements, vitamins, novelty safes, incense, digital scales, convenience store items, Grinders, Pepper Spray, Stun Guns, flask and many other items.
Location: Los Angeles (relocatable, owner works from home)
Hours of Operation: 8 am to 5 pm Monday-Friday
Gross Sales: $ 974,000 year
Adjusted Net Profit: $ 195,000 year
Total Rent: $ none (working from home)
NNN: $ N/A
Length of Lease: N/A
Sq. Ft. N/A
Number of Employees: owner operated
Full time: 0 Part time: (on call employee $12/hr)
Payroll: $ 0
HISTORY AND BUSINESS STRENGTHS: Steady increase until 2009 when changes to business were made. Profitable since 2013
CUSTOMER BASE: Wholesalers, Distributors, Convenience Stores, Smoke Shops, Gift Shops etc.
COMPETITION: Other Wholesalers and distributors
MARKETING AND ADVERTISING: Trade shows, catalogs, email blasting
FUTURE POTENTIAL: Has potential to do 1.5 to 2 million
INVENTORY (Cost at Close): 35000.00
Insurance: $ N/A
Gas: $ N/A
Electric: $ N/A
Water: $ N/A
Phone: $ 150 (business line)
Trash: $ N/A
Internet and TV: $ N/A
Cost of goods: N/A
Product line is a variety of novelty items but majority of sales consist of the energy supplements. The company has a stellar reputation with a loyal client database of 2,200+ resellers. Owner wants to retire; he is older and does not have the energy or ambition to continue with high volume sales (would include staff and warehouse and more inventory). He is currently working only with his preferred product lines that provide him with higher margins and less work, less overhead. He has been downsizing for the last 5 years. In 2008, he completely stopped carrying certain items that had produced a lot more sales in the past. At his peak, with these products, sales were over $1.8 million. This allows a great opportunity for a new buyer to implement a strategy of expanding the current product line to include these products that the owner had stopped carrying. The company currently does very little advertising. They also have done very little to take advantage of Internet possibilities. Website only accounts for 10% of his sales. A new owner can pursue a much more aggressive online strategy. More than 50% of his customers are repeat customers. Average of 10% internet, 10% catalog, 10% tradeshows, 10% cold calls.
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