Business is primarily a B2B (Business to Business) recycler and supplier of ink and toner cartridges to local businesses (~65%) and consumers (~35%) in northeast Tarrant County. The business primarily sells remanufactured cartridges but also offers OEM (Original Equipment Manufacturer) cartridges. Additional services include secure shredding, printer maintenance & repair and paper sales.
Business remanufacturers higher volume, simple inkjet cartridges and purchases low volume inkjet plus all toner cartridges wholesale from 3rd party partners. Originally founded as a franchise, the owner terminated the franchise agreement in December 2014 positioning the business for significantly higher future profits (no royalties). Many growth opportunities exist for an aggressive, sales-oriented hands-on owner-operator.
The business is located in a busy strip center with easy access to major Highways for walk-in consumer customers. Same or next day free delivery is provided to approximately 400 local businesses within about 10 miles of the store. The B2B customer base spans all industries and includes small to medium sized businesses.
The business has been in profitable operation for many years. However, the last three years have been negatively impacted by construction traffic. Although now completed, this multi-year, major road construction project, known as the DFW Connector Project, significantly impacted walk-in retail customer traffic. The business is located less than one block from two of the major highways impacted by that project. The construction is now complete and, to the knowledge of the owner, no further construction is planned.
The business recently relocated in March 2015 to a smaller space within the same shopping center. The relocation allowed the business to retain the current customer base, take advantage of improving traffic flow (post-construction) and reduce operating expenses. The business has an excellent manager who has been an employee for five years. Customer surveys reflect a strong, positive reputation for excellent customer service. Many customers have come to depend on the business for printer expertise and recommendations.
The owner and spouse work approx 30 hrs/wk in the business. The personable, knowledgeable store manager works 40 hrs/wk and has four years experience. The store manager is responsible for the day-to-day operation of the store which includes taking customer orders, counter sales, cartridge production, ordering production materials and finished cartridges based on need, inventory management, resolution of customer issues, telemarketing and directing activities of other employees. The owner expects that all employees will be willing to stay.
The asking price for the assets of the business is $140,000 ALL-CASH or $180,000 with $90,000 down and $90,000 seller-financed to a qualified purchaser for 5 yrs @ 8% ($1,825/month). All seller financing to be personally guaranteed. The seller prefers to sell for ALL-CASH. The assets include inventory at cost of $18,000, FFE (Furniture, Fixtures and Equipment) valued at $22,000 and Accounts Receivables totaling $10,000. Business will be transferred free and clear of any other liabilities.
NOTE E2 VISA ELIGIBLE. This is an ideal business to obtain an E2 Visa: full-time employees and profitable income for a qualified owner-operator.
Key words: Grapevine, Keller, Southlake, Colleyville, Irving
The business is located in a retail center in a high traffic area of Grapevine. The shopping center includes major retailers as well as numerous independent small businesses.
The business occupies ~645 SF for ~$1021.25/mo plus NNN of approximately $300/mo. The lease expires ~June 2020 and has a security deposit of approximately $2,340.54. Utilities average ~$225/mo. The seller believes that the landlord is willing to offer a long-term lease to a qualified buyer. Purchaser is responsible for any lease application or transfer fees (estimated at $1,500).
Major competitors include Staples, Office Depot, Costco, Quill and Walmart. However, none of these offer the same range of products/services or provide great service including printer cleaning and repair.
Leads are obtained through networking partners and website. Approximately 65% of sales are B2B, with 35% being retail walk-in customers. The primary marketing strategy is: 1) monthly ads in local community newspapers, 2) monthly email newsletter/offer to over 4,000 customers in email database, 3) shared mailers (Money Mailer) to residents of surrounding areas, 4) participation in Chamber of Commerce sponsored networking groups and events, 5) referral program, 6) 14' flag near roadside quarterly, 7) wrapped delivery vehicle, 8) Website, 9) Telemarketing to existing and potential customers. A new, energetic owner can further increase sales & profits in many ways including: 1) hiring a sales person for systematic cold-calling on local businesses, 2) participating in effective networking groups such as BNI (Business Networking International), 3) addition of related product lines that could be marketed to B2B customers (eg managed print services, office products and promotional products), 4) continuing the business’ existing marketing strategies, 5) further lowering cost of goods with lower priced suppliers.
Monday – Friday: 9 am – 7 pm, Saturday: 10 am – 5 pm
Support & Training:
The seller genuinely desires an effective business transition. Two weeks of training will be included with the purchase price. Seller is willing to provide additional training at a mutually agreed fixed compensation to assist with general management functions for a finite period.
Price $140,000 ALL-CASH or $180k with $90k down & $90k seller-financing