|Company Details:||Accord Business Brokers Pty Ltd|
HOME BREWING EQUIPMENT & PRODUCT SUPPLIES
Sales revenue: $220, 000
Net profit: Undisclosed
Furniture/Fixtures value: $25, 000
Inventory/Stock value: $35, 000
Business Description Summary:
This is an ideal business for an owner/operator or for a couple wishing to get into business together.
It was started by the current owner in July 2005 in its current location. The business operates as a retailer of equipment and supplies for the home production of various products, mainly beer. It is also a convenient home for home brewing enthusiasts to discuss the intricacies of the craft of home brewing. The owner has written a book which provides in depth information on the process, and he is prepared to provide the new owner with the rights to continue the sale of this book. It will also facilitate the passing on of knowledge to a buyer who is not experienced in this field. The vendor anticipates no problem in handing over the business with sufficient back up knowledge to the new owner. He will also remain available for consultation and discussion after the sale.
The business commenced as a reseller of other brands of home brewing product such as Coopers, Morgans, ESB and Muntons. Shortly after, he introduced the his own private brand to market his own recipes. It is registered and included in the sale of the business. He has been involved in brewing for over 30 years.
Operating hours are:
- Monday to Friday 9.00 a.m. to 5.30 p.m.
- Saturday 9.00 a.m. to 1.00 p.m.
- Sunday Closed
- Public Holidays Closed
- Easter Closed
- Melbourne Cup Closed all four days
- Christmas – New Year Closed
Market / Customer:
The target market is any person who wants to enjoy good beer or similar products, which are healthier, cheaper, taste better and can be tailor made to suit the individual taste. The type of person who is a customer of this business covers a complete cross section of the entire population, and the market is growing and the growth is accelerating in all sectors of the population in all demographic groups.
The owner has not undertaken any advertising activity, after initially advertising in the Yellow Pages, which was discontinued some years ago without affecting growth. Any marketing activity would have a significant positive impact on sales and growth. A large portion of customers seek out the business on the recommendation of satisfied customers, and the business philosophy of good service, good information and good product is the key to its success and growing reputation.
While there are similar businesses, there is no competition in the area, with the closest being a 45 minute drive away, but even this business is not considered serious competition.
The business has a fully established website which has a full retail capability including payment module, and accounts for about 10% of sales.
There is a database of 1200 customer names on the computer and further names and addresses of delivery details, which are not computerised.
Sales are fairly evenly spread throughout the year and the chart shows the steady sales and growth year on year.
Products / Services:
Approximately 80% of the business activity is in the supply of ingredients and equipment for the home brewing of beer, of which about one quarter is privately branded, with the remainder being third party brands. Obviously profit margins are higher on own brands.
Other product lines being offered are essences for the home production of spirits and equipment for the home production of other products such as yoghurt, sausages, jerky, cheese, wine, smoking equipment and pizza ovens.
A certain amount of imported European commercial beer is sold, although volumes are currently very low. The owner sees this as an important growth area, should the new owner wishes to exploit it.
The business is located in retail premises approximately 120 square metres in extent located in the outer Eastern area of Melbourne. The shop itself is at street level with a downstairs storeroom of approximately 50 square metres (included in the 120 square metres). The storeroom has roller shutter doors leading onto a car park to facilitate deliveries from suppliers. The premises are across the road from a regional shopping hub and supermarket and is surrounded by car parks. It is on a busy intersection which is one of the major east/west, north/south crossroads in the area.
There is currently no lease in place, but the landlord will be happy to grant a lease to a new owner. Current rental is $1,010 per month, including outgoings.
Plant/Equipment / Fittings:
A full list of plant and equipment is included in the full report. The vendor values these assets at about $25, 000.
***** ***** ***** ***** *****
Telephone (03) 9569 2883
Fax (03) 8677 0868
Mobile 0419 910 099
Employees: Owner operatoed
Trading Hours:• Monday to Friday 9.00 a.m. to 5.30 p.m. • Saturday 9.00 a.m. to 1.00 p.m. • Sunday Closed
Other InformationSelling Assets: Yes.
Home Based: No
Franchise Terms: Not a franchise.
Real Estate: See report.
Competition: See report.
Expansion: See report.
Support Traning: As reaqsonably required. Ongoing assistance will also be available, if required.
Lease Terms: See report.