Business DescriptionThe company is a South Dakota-based company that is currently up for sale to qualified buyers exclusively through Raincatcher. The company is the only office supply company in its town and opened its doors in 1938. The store was purchased in 1985 and moved to its current location in 2009. As the only local office supply store in its city, the company provides an ideal opportunity for a buyer to enjoy predictable cash flow and return on investment from both the local community and vendors of the annual Sturgis bike rally. The office supply industry is a $13 billion industry. Competition in this industry is high as more online and discount stores offer lower prices due to their volume and low overhead costs. However, market research shows that small, local office supply stores can remain successful by focusing on excellent customer service and by offering specialty services or products. The company has demonstrated success on both points. One of the store’s greatest strengths is its focus on customer service. Plus, the store now offers printing services, including highly specialized printing. It is the only facility within the area to do so and approximately 15 percent of its revenues are now generated from this specialized service. In addition to being the only office supply and printing store in its vicinity, the company is in a unique location that allows it to profit from the annual Sturgis bike rally – and there is potential to profit even further from this location. The annual rally occurs during the first full week of August each year. The area’s local news reported that the 2017 Sturgis rally attracted a half million people to the area. According to the report, the estimated impact of the annual rally is $738 million. The city manager and local business leaders held a two-day summit after the rally to discuss planning and marketing for 2018. The company’s current owner reports that there is a spike in business every year in late July from rally vendors who come into town early to set up. Some of the businesses around the company rent their parking lots and/or buildings to vendors for the rally. These rentals command high fees. The parking lot across the alley from the store rents for approximately $50,000 for two weeks during the rally. Additionally, the owners of another local business receive $50,000 each year to rent space to a rally vendor. This space is about half the size of the company’s parking lot. The company does not currently rent its space and there are backroads that locals can use to access the store despite the crowds that are in town for the rally. Purchase Considerations:
- A well-established company that has been around for 79 years
- The only office supply company and print shop in town
- Excellent customer service with 95% repeat business.
- Prime location for the annual Sturgis Rally
- Opportunity for strong margins.
|Business||N/A||Asking Price||$1,095,000 + Inventory|
|Real Estate||Price includes real estate valued at $895,000||Address||SD|
|Location||SD||Inventory||Averages ~ $210,000|
|Yrs In Business||79 Years||FF&E||$195,000|
|Employees||2 full time||Terms||Negotiable|
|Hours||Mon – Fri: 9:00 a.m. – 5:30 p.m. Sat: 10:00 a.m. – 3:00 p.m.||Ownership||Sole Proprietorship|
|Facilities||Owned – 6,000 square feet facility||Reason for Sale||Owner is retiring|