Eco Friendly Home Decor Manufacturing & Wholesale Distributor For Sale

Business description

This unique home décor firm has a carved out a niche in the growing eco-friendly product market, and has created a long-term sustainable advantage over its competition. The firm manufactures its product from its own Southeast Asian plant, with cutting and final assembly taking place in its Los Angeles based sales and distribution facility. The firm’s primary customers include interior designers with their own installers, and retail outlets to a far lesser degree. Roughly fifty percent of the firms revenues and profits are derived from its proprietary products from its own factory, whereas the remaining fifty percent are from a very high-end custom product line that occupies a more traditional niche in this product category.

Property information

Real Estate:

Lease

Lease terms:

5,000 sq. ft. + 3,000 sq. ft. parking for $4,000/month thru 2011.

Location:

The firm operates from a 5,000 square foot final assembly facility with a large parking lot. The space leases for $4,000 per month, on lease valid until May 2011. As this product can have a national client base, the facility’s location is not paramount. At present, an estimated 80% of sales to Southern California consumers simply due to the seller’s focus on the “low lying fruit” available in the local market, and because Southern California’s were deemed to be likely ‘early adopters’ of eco-friendly products. Approximately $20,000 in light assembly equipment, as well as $150,000 in inventory will be included in the sale.

Other information

Expansion potential:

Fortunately, as the company is still in its infancy, it has multiple avenues for growth. First, they have only focused on the Southern California market as they deemed local clients to be early adopter of their two product categories: eco-friendly and high-end. Second, the Seller has found that local designers and retailers are simply easier to reach as it is not necessary to attend trade shows or appoint sales representatives in other states to sell product. Third, the firm has not attempted to truly capitalize on its Southeast Asian manufacturing plant. Because of the advantages it offer, they could source product for other firms as well, or expand into additional complementary product lines that would utilize the same eco-friendly materials and manufacturing processes. Finally, the seller has been the primary sales representative and has largely relied on word of mouth and referrals for sales to date. The firm could employ a telemarketing campaign and a trade show presence, coupled with the production of a comprehensive sample book to increase sales on a national scale.

Competition / Market:

There are a few regional and national competitors in each of the 2 primary product categories. The company, however, has a sustainable competitive advantage in 1 of its product categories due to its manufacturing plant abroad, and its ability to have a lower cost structure and proprietary designs. Naturally, the firm’s second product category benefits from the advantages of the first, as buyers prefer to source materials from the same manufacture.

Support & training:

2 weeks at 40 hours per week.

Reasons for selling:

Retirement

Trading hours:

M-F 8am-5pm

Furniture / Fixtures value:

$20,000 (included in the asking price)

Inventory / Stock value:

$150,000 (included in the asking price)