Busy Hardware in Pretoria "Old" East
About this business for saleBusy Hardware in Pretoria "Old" East
Well established and profitable hardware store.
This is an ideal opportunity to acquire a stand alone independent profitable suburban hardware store in the “old” East of Pretoria.
Having been in operation for an estimated 52 years and owned by the current owners for the last 16 years this business has proven that it could stand the test of time.
Located in a suburban shopping node, the business sells products to a variety of clients, old customers, DIY enthusiasts and builders. It is well known in the area and has built up a name for good service, competitive pricing and a full range of products.
The business features a wide range of hardware, tools, batteries and allied products to satisfy the needs of clients. Included is a key cutting facility and a glass cutting service.
The business has a full complement of knowledgeable, hardworking and loyal staff and the owners are also involved in the day to day management of the store.
There is a alarm system and panic buttons as well as someone who sleeps on the premises for added security. There has been no incidents over the period of the current owners tenure.
The business is VAT registered. The business is registered in the name of a CC which the buyer may want to take over if interested.
The business operates from a retail outlet with excellent visibility located in a popular suburban shopping node. The size of the premises are roughly 316 square meters which includes a small yard, trading area, store room, office area, carport, toilets and change rooms.
Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation) based on historical and signed off AFS amounts to R55,000 pm.
Included in the price is equipment in a good condition estimated at second hand value of +- R470,000 including key cutting machines.
The price of R2,200,,000 excludes VAT(if applicable) but includes stock to the value of +-R590,000.
Average year on year sales for current financial period year to date trading is 11% higher compared to the previous financial year.
Sales are 97% cash including credit card sales. Balance is credit sales with nearby institutions and very low credit risk.
The reason for the sale is that the owners have reached retirement age.
The business has potential to grow further based on an excellent reputation built up over many years. The administration system needs to be upgraded with a POS that will result in savings and faster availability of management information.
No advertising is being done and here neighborhood marketing can play a big role with social marketing awareness and regular price specials.