The Wood Works is for sale as the current owners are retiring
Brief Company History - The business was established by Leon Sadubin in the early 90's and began trading from premises in suburban Sydney. Leon sold the business to the current owners who opened retail premises in Meadow bank in Sydney in 1996. A City branch store traded for a few years at Gowings in Market street until their store closed. In 2007 the current owners closed their retail store operations and successfully transitioned to an e-commerce model based out of Church Point Sydney.
Business Model Summary We deal predominantly with quality known brands from Europe, UK, USA and Japan. With certain suppliers we offer a more extensive range than other competing retailers with the stated advice that we charge customers only when the goods are either ready to ship or in transit to us. Given the size of the Australian market, this allows for example, listing all the 500 variants of the Liogier rasp range from France on the understanding that several weeks wait time is expected for non stock items. The above model means not using a payment gateway and manual invoicing. The benefits are that the need for stock on hand can be minimised and customers have a far greater range to choose from. A few key foreign suppliers are able to ship down to individual items given that a minimum order value of AUD$750 is placed. Supply time is often inside 10 working days so a close to just-in-time purchasing can be adopted. We currently import as much of our stock as is feasible and take advantage of the import consignment value tax limit of $1000 allowed by customs.
Location & Space Requirements - Assuming the business continues on an email/web/phone order basis with minimal walk-in trade the essential needs are storage and packing space, access to Broadband, a Post Office and a location well serviced by couriers. There is still clearly scope for a hybrid model - bricks & mortar and Web/Phone.
Staffing - The business is currently managed and run by one principal person. We have an assistant who packs and invoices orders and works 6 to 8 hours a week.
The owner/manager does the purchase ordering and web site, EBAY and Amazon content management.
Income Streams - We have income streams from Web sales, Phone orders, Amazon, Ebay, and Email orders from Schools and Businesses such as joineries. We currently limit wholesaling and offer acccount terms principally to bona fide schools. This clearly can be reassessed as there is scope for a wholesaling operation.
Amazon, Ebay, Socials - We have had an Amazon presence since being approached by them mid 2018. We use the Seller Fulfillment option and have declined the FBA option (Fulfillment By Amazon). Ebay - We have had a store since mid 2014. Social Media - There is a huge untapped potential for marketing on social media.
Existing ReSellers & Wholesale We have a South Australian based reseller of our Hegner machines and spare parts. We offer less 15% on machines and less 30% on spare parts. They settle inside 7 days.
Sales Performance Averages - Income - A monthly gross of between $28,000 and $45,000 excluding GST fairly consistently from 2014.with the exception of spikes during COVID waves of in excess of $80,000 ex GST a month. Over a similar time frame orders at 200 to 400 a month average - again with a COVID spike to 800+ orders. The business has filled over $6million in sales from 50,000+ orders in current data file.
Transfer to New Owner - We need the buyer to pack and move stock and storage cabinets, counting scale and packaging flat pack boxes from a private home on Sydney's northern beaches. Access is good up to a 3 ton van.
What is Included in the Sale - Registered Australian Business ABN 46 115 936 082, A data base of 40,000 Customers, Goodwill, Intellectual Property (e.g. Web content), Stock on Hand, Unfilled Orders, Business Name, Phone Number, Email and Website URL's, Storage Cabinets & Benches, Counting Scale, Packaging, Price Guns, Schools Service Trolley, computer procedure manuals & pre-populated accounts file if and as agreed.
A spreadsheet which ranks recent sales of $4.7million over1900 top selling items with a sales volume of over 10 units per item. Ranking for Sale Quantity, Sale Value, Sale Margin and a Combined ranking of all three variables.
In Prospect - A chance to buy a going concern with a quality website and established order stream and supplier relationships many over 20 years duration. The current owners believe there is considerable scope to grow the business further as a specialist supplier of quality products.