MergerPlace

Retail Pack/Ship/Mail/Print Service

Michigan (Oakland)


  • Asking Price: $137,000
  • Gross Income: $314,535
  • Cash Flow: $60,634
  • Real Estate: Not Disclosed
  • Inventory: $8,000
  • FF&E: $63,115
  • Listing ID: #202880
  • Established: 1989
  • Employees: 1 FT/4 PT

Business Description

This non-franchised, independent packing and shipping business has successfully operated over 28 years. Located in the middle of a high-traffic shopping center with two well-known anchor stores and a popular deli, the business commands a high level of "errand" traffic. While earnings are currently growing well, this business is a great opportunity for the buyer willing to expand marketing, advertising and service offerings such as digital mail.

About half of the store's revenue comes from the four major shippers – Fed Ex, UPS, DHL and USPS. Customers realize the benefits of the price competition between these shippers, as the store is able to help them shop for the best price given their packages' weight, dimensions, and shipping speed. Other revenue sources include the recurring revenue from mailbox services, as well as color and black-and-white copying and printing, stamps, and packing services. Retail products such as greeting cards are also available.

The firm has enjoyed steady sales levels, while the owner has increased SDE margin in each of the last four years. Revenue for 2017 is expected to be a bit better than 2016. In addition to the owner, three part-time employees staff the store.

The store has an excellent reputation in the area, winning a customer service award from the local Chamber of Commerce. The business has also partnered with local schools and charitable organizations in support of their printing needs.


Business Details

Primary Business Category: Couriers, Warehousing & Storage
Location: Michigan
County: Oakland

Company Information

Year Established: 1989
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 1 FT/4 PT

Financial Information

Asking Price: $137,000
Gross Revenue: $314,535
Cash Flow: $60,634
FF&E: $63,115
Inventory: $8,000
Seller Financing Available: No

Property Information

Facilities:

The business occupies a leased, 1084-square-foot, full-windowed storefront near the corner of the shopping center. The current lease expires at the end of 2019.

Growth & expansion opportunities:

The owner could grow the business by considering initiatives in advertising, marketing, additional services and products, community affinity efforts, and partnerships with complementary businesses.

Competition:

The closest competitor is a UPS Store over two miles away, with a FedEx Kinkos even farther away. In addition to serving different traffic areas, these competitors cannot match the business's ability to provide customers choice of multiple shippers, as well as one-stop shopping for packing and related services. The well-publicized Amazon-ing of the known universe has not had a meaningful impact on revenue. Further, the four major shippers have provided a steady stream of annual price increases which the business is able to pass on to customers.

Reason for selling:

After 14 years of successfully operating the business, the owner is retiring.

Support & Training:

Will train for 4 weeks @ no cost. About half of the store's revenue comes from the four major shippers – Fed Ex, UPS, DHL and USPS. Customers realize the benefits of the price competition between these shippers, as the store is able to help them shop for the best price given their packages' weight, dimensions, and shipping speed. Other revenue sources include the recurring revenue from mailbox services, as well as color and black-and-white copying and printing, stamps, and packing services. Retail products such as greeting cards are also available. Other than the approvals required to continue to provide shipping services for the four major shippers, no special licenses or skills are required.

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Business Listed By:

Ken Whitley

Murphy Business Brokers