Description
Hot Wheels is a Real Deal!
Reseda, CA – (Los Angeles County)
Seller Financing Available!
- Asking Price: $275,000
- Cash Flow: $103,000
- Gross Revenue: $395,000
- EBITDA: N/A
- FF&E: $45,000
- Inventory: $20,000
- Rent: $4,992 /Month
- Established: 1984
Business Description
Hot Wheels is a Real Deal! – $275,000 is a steal for this Business of red hot wheels and tires, installed and serviced on one of the most heavily trafficked thoroughfares in the San Fernando Valley.
Hot wheels and tires, installed and serviced at this well-branded, Goodyear Authorized shop on one of the most heavily trafficked thoroughfares in all the San Fernando Valley. Success of diversified business is due to friendly and proficient sales of new and used tires, wheels, alignment, suspension, brake & tune up services.
This well-established shop with loyal clientele pulls business from the surrounding community and from commuters that drive through the high density area and can’t miss its premium location!
Detailed Information:
Premium relationships with vendors with all the majors manufacturers and Goodyear certification are included, as are newly developed and numerous fleet accounts that level sales throughout the year and stabilize revenues and historical / current / future cash flows. Upside exists for those with a marketing expertise as the Owner has not deployed resources to engage in social media / PPC and miscellaneous advertising campaigns because business have been good on walk-ins and repeat customers alone.
NDA is required for exact business address and to do a drive by as a CUSTOMER ONLY. – (CONFIDENTIAL SALE!!)
Detailed Information
- Inventory: Included in asking price
- Real Estate: Leased Building SF: 3,200 Lease Expiration: 7/31/2018
- Employees: 4
- Furniture, Fixtures, & Equipment (FF&E): Included in asking price
- Facilities: 3,200 building on an approximate 30,000 square-foot lot.
- Competition: Big box stores get a lot of traffic but there’s no substitute for the “local shop” with personal connections and extra-mile customer service that goes with it.
- Growth & Expansion: Plenty of upside and lots of room to expand range of products and services at the discretion of the Buyer.
- Financing: $200k Cash Down, $2,700 Per Month for 30 Months @ 5%!
- Support & Training: 4 weeks at 20 hours a week or as negotiated.
- Reason for Selling: Other business interests.
Bright Outlook
- Seller believes a new owner can increase revenue, via better and targeted marketing and advertising through direct mail, or pay per click Google ads, or alike.
- Continue seeking additional fleet sales opportunities.
Competitive Landscape:
Demand for replacement tires is tied to vehicle use, which in turn depends on economic activity. The profitability of individual companies depends on marketing, since the product is largely a commodity. Small firms can compete effectively by serving a particular region, by specializing (such as in tires for high-end cars) or by joining purchasing/distribution networks.
With about 60% of the market, independent tire dealers sell more consumer tires to end users than any other distribution channel, according to Modern Tire Dealer (MTD). Growth of the independent dealer channel has come at the expense of mass merchandise chains and stores owned by tire manufacturers.
Opportunity: Sears and Amazon Alter Retail Landscape – The competitive landscape for independent tire dealers is in flux, amid heightened concerns about Sears’s financial viability and Amazon’s looming presence. Sears warned in its annual report in March 2017 that its operating results cast doubt on the retailer’s ability to continue as “a going concern.” While much of the air has already gone out of Sears’ tire sales — from a peak of more than 20 million tires sold a year, it now sells around 3 million — the disappearance of some 650 Sears Auto Centers would present independent tire dealers with an opportunity to pick up market share, according to Modern Tire Dealer.
Industry Impact – Independent tire dealers must be alert to opportunities to capture market share from failed competitors while protecting existing sales from incursions by online sellers.
Direct-to-Consumer Sales – Tire dealers could face growing competition as more tire manufacturers offer direct-to-consumer online tire sales. Goodyear began selling its own tires directly to consumers online in 2015, and Michelin is exploring online sales. Dealers fear tire makers may sell tires online at prices below what dealers pay for them. However, tire dealers resigned to an increase in online sales see an upside to the trend: new business for mounting, balancing, and alignments, as well as other services they may offer.
ProNova sources industry and marketplace information from First Research Forecasts. These forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc.
ProNova Partners Buyer Profile & NDA
***RED STARS ARE REQUIRED FIELDS*** This information is required and must be filled in completely before the Seller will release any vital information, including business address, financial due diligence package on file, and other sensitive confidential information. It will also be used by ProNova Partners to match your buyer profile with future similar engagements our firm has for sale. * Required