Business for Sale Overview:
Prince includes $175,000 in inventory at cost. MSM sells 1/1250-scale model ships via the Internet. These models are highly detailed collectibles that are prized by naval, cruise ship, merchant marine and history devotees. They are usually made of metal and come completely assembled and painted. The small storage space needed for inventory allows MSM to operate from a few rooms in a modest-sized apartment, and thus resources can be easily devoted to growing the business or providing ample discretionary revenue. In short, there is no need to maintain a storefront or expensive operating facility. MSM’s growth has been remarkable. The company had gross annual sales of only $25,550 during 2002, but this grew to $350,000 by 2006. Moreover, the business itself is relatively easy to operate. Orders are placed by phone, e-mail or fax, and the models are small enough so that packing is relatively easy vs. what is required for many products. Regular UPS and USPS daily pick-ups insure that few if any trips are required to send merchandise, and inventory is delivered to MSM’s place of business via normal shipping methods. This is an ideal home-based concern or can be used as a means of adding sales volume to an existing business.
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Property Features and Assets:
MSM can be operated out of any area of 400-500 square feet, and thus is suitable for a home, apartment or retail store location. A diverse inventory of $170,000-$180,000 wholesale will be supplied with the business, as well as a website, 1,500 person customer list, and even training if needed. A computer, phone and printer/fax machine are all that is needed to operate MSM. One of the concerns greatest assets are the many connections it has established with over 40 suppliers. Many 1/1250 model ship suppliers are very reluctant to take on new clients, but MSM has established a wide web of connections, some of which are exclusive. These will transfer with the sale of the company, but would be nearly impossible to develop from scratch. Here again, the existing owner is willing and eager to help during the transition process.
Market Competition and Expansion:
Currently, there are only two other competing firms in the US market. One is located on the West Coast, and is a relatively small concern that maintains a very cordial relationship with MSM. The other concern is located on the East Coast, and has lost considerable market share to MSM over the last 7 years. According to mutual suppliers, MSM is probably the largest 1/1250 scale retail model ship dealership in the US. In terms of growth, it is remarkable that MSM has achieved its status without the use of a shopping cart. Most retailers see huge increases in gross sales when a cart is used, and this is a sales tool any new owner can opt to employ. Moreover, MSM currently spends less than $1200 per year on advertising, and considerable growth benefits may be accrued by devoting more resources toward this area.
Reason for Selling:
Changing careers
Additional Details:
- The property is owned.
- The owner is willing to train/assist the new owner.
- This is a homebased business opportunity.
- This is not a franchise resale opportunity.
- This is not a distressed business or bankruptcy situation.
Resources: