after many successful years in the construction industry the vendor established a successful bathroom fixtures and fittings retail business in harlesden in 1994 with his wife. In 2003, they took over the current business and premises from a company who started trading in the 1960’s as a family plumbers merchant. Due to the long trading history, the owners decided to continue trading under the same trade name. From the beginning the business has served both retail consumers and the wider trade market. They have stocked mid to high range products, with brands such as laufen, grohe, and ideal standard, with all consumables, fixtures and fittings. The business is fully independent and enjoys the membership of united merchants buying group, which allows the business to access a range of suppliers, with 1000’s of products, and gain competitive prices. This allows the business to compete with some of the larger national chain stores such as b&q, bathstore and plumbase. Alongside the retail clients who pass by the prominent location, and come due to recommendation and referral, 50% of the businesses revenue is driven from trade accounts such as local builders, sub-contractors and large clients such as hotels. These clients return not only because of the competitive prices, but also due to loyalty gained over many years of serving local business, with recommendation passed down generations. The business has been trading stably for many years, and has expanded organically, with extra storage and retail space added over the years, and recently a move into the complimentary kitchen sector. Equipment: the busines has a fully computersied customer database going back many years for both retail clients and trade cutomers. Certain trade accounts have credit facilities, and the financial accounts are computerised also, with links to stock control. The busines utilises “streamline” for credit card payments, and there are cash registers at both the pay counters. Customer service: the business considers simply that satisfied customers come back and on this basis has maintained levels of product and service quality intended to best guarantee this satisfaction. The results of this commitment are evident in the degree of return custom and the high level of new business coming from referrals. The focus on delivering to the trade, and always meeting their expectations in terms of flexible and timely supply, product range, price competitiveness and staff knowledge and assistance, assures the return of this profitable client base, and draws them from the larger general plumbing chain stores. Key strengths: alongside the long history, which is obviously a great asset to the business, the business has a good location on a busy high street, and has limited direct competition within a radius of a few miles in a populous area of north west london. The duality of having both a retail counter at the front of the store, and a trade counter at the rear, gives the business a stable footing with multiple revenue streams. The relationships with a range of trade customers is strong, which in itself produces constant cash flow. Growth and expansion opportunities: although the business is long standing and stable, there is still plenty of room for growth in a number of directions. The website is newly re-furbished, and functional, with on-line ordering, however the website could be further expanded and marketed to customers further a field, with the potential to deliver products over a further distance. The business has devoted some showroom space to fitted kitchens, and again with further marketing and promotion this could become a great new trading asset. The business has successfully supplied small / medium builders and contractors, there is every opportunity to supply to larger construction companies, and the vendor has made approaches to tendering for local authority business.
| Ownership: |
no |
| Lease: |
yes |
| Lease terms: |
The annual rent is around £40,000 per annum, with business rates of around £13,300 per annum. |
| Location: |
The premises currently has 4 years remaining on the fully renewable 10 year lease. The annual rent is around £40,000 per annum, with business rates of around £13,300 per annum. The showroom is located on a busy high street in North West London.
At the front of the building, is the main retail showroom area, in total comprising of circa 150 sq meters. This is split into 2 separate areas, for different manufacture displays, with a central reception desk. To the rear of the showroom is a small management office, and to the side further showroom space currently devoted to a range of fitted kitchens and accessories.
At the rear of the building is the main trade counter, with separate trade entrance. The trade area is well stocked with fittings, equipment and consumables. On site is a newly built steel storage warehouse. The trade area, including storage is around 200 sq meters in total. There are staff kitchen and toilet facilities on site. |
