Located in Sydneys west, this business is an importer and wholesaler of hardware products; which has been operating for more than 50 years.

The bulk of the customers are in regional NSW, Southern QLD and Northern VIC; all these areas covered by sales representatives of the company. Customers in all other states are served by phone, fax and internet. The company has agreements in place with large national franchises and buying groups and through them reaching over 5,000 retailers across Australia. However, no single buying group represents more than 10% of total sales.
The product catalogue is very diverse, with around 2,000 different products organised in categories. All products with significant volume are imported directly from overseas manufacturers and the rest are sourced locally. The company has great price agreements with first class local suppliers. This supply chain structure ensures attractive gross margins while offering very good products at competitive prices for target markets.
The business recently started offering its products in the internet though a state of the art website. This site allows for ordering online and has a built-in newsletter facility to mass-communicate with customers about new products and deals. Since its launch, online transactions have grown exponentially, contributing to a reduction in sales expenses.
The premises (780 sqm) are leased (remaining 2 years plus option for another 2) and have significant room for growth.
Turnover for this business is around $1,000,000 per year, with gross margins of 45%.
Inventory on hand fluctuates between $230,000 and $280,000 over the year; depending on the timing of arrival of orders from overseas.
Current owners have driven significant changes and improvements over the last 3 years, consolidating the product range, improving customer service, creating a technical platform and product catalogue, streamlining the business processes to drive efficiency and therefore improving margins and competitiveness. Now the company is ready for the next stage and they have decided to move on to a different line of business.

(Photo is representational)