 | Contract Packing and Fulfilment Services For Sale Oxfordshire, United Kingdom Advert ref: 3318PS FINANCIAL DETAILS | Asking price: £295,000 Sales revenue: £200k < 500k Net profit: £100k < 250k Fixtures value: Undisclosed Stock value: Undisclosed |
BUSINESS DESCRIPTION | The business partnership is pleased to offer for sale this long established business providing contract packaging services to its customers.Typical services fall into two main areas:
• Pick, pack and dispatch.
• Pick component stock, light assembly/process work on the product, pack and dispatch.
The added value created by light assembly and processing of the products and packaging to their customers’ requirements has created a loyal customer base and allows the business to charge additional fees for their services.
The business has a warehousing facility used for storage of customers’ products and process of dispatch orders. The business charges its customers for storage space utilized, orders dispatched and an hourly rate for the process work on products.
Carriers are contracted out and are paid direct by their customers. Dispatches are usually either direct to retailers or to distributors. The business uses its own transport to drop and collect product to outworkers.
The business has developed a reputation in a niche market that often requires hand finishing and this type of requirement is ideally suited to the services provided by the business. Component stocks are picked and sent to out workers for processing, followed by collection and dispatch. The business now has a number of national market leading compaines in this sector who are very closely tied in to the business due to the specialist nature of the service offered.
The business loses very few customers because once set up, providing standards are maintained, there is little incentive for customers to switch.
New customers are primarily generated through recommendations and word of mouth.
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GENERAL INFORMATION | Property: Leasehold
Lease terms
The business currently occupies 8,000 sq ft of warehousing. The current lease expires at the end of 2009. The purchaser could negotiate a new lease with the landlord.
Competition / Market
Very loyal customer base with very little churn
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The Business Partnership - Gloucestershire, Oxfordshire and Wiltshire | | | |
