Business Overview:
The Company is a 30+ year-old well-established B2B chemical manufacturer of car wash and automotive detail chemicals, plus distributor of related supplies, via direct B2B sales to new and used automotive dealerships, detail shops, body shops, car washes and wholesale sales. Products include car wash and automotive detail supplies such as soap, cleaners, dressings, wax, compound, buffers, pads, brushes, towels, etc.
Sales are primarily through independent route salesmen selling direct from route trucks to businesses, in addition to direct sales with a small storefront at the manufacturing facility, selling retail to the public. Leads primarily come from customer referrals and supplier referrals. The Company sells to customers in middle and western Tennessee and western Kentucky.
The Company blends 8 products on site and fills/packages for sale and purchase the balance of their products (such as waxes). Generally, they do not want to produce any product that has waste byproduct requiring disposal. Their inhouse chemical manufacturing production is approximately ~30% of sales, totaling approximately 8-10,000 gallons/month. Largest volume products are all purpose cleaner and tire dressing. They have been in their current location since startup. They expanded in 2010 by adding a neighboring 4,000 SF warehouse, such that their current ~11,000 SF facility combines manufacturing, warehousing, and a small on-site storefront. The business has ~80 active customers serving 5 major sectors: ~66% Wholesale, ~13% Auto dealers (new & used), ~12% Car Washes, ~5% Other, ~2% Detail Shops, ~1% Body Shops.
The owner plans to retire but, if desired by a purchaser, is willing to stay in an ongoing role at mutually agreed compensation. The seller states that the business has excellent books & records and can prove all sales & expenses.
The business has built a strong reputation over 30+ years for quality products, reliability and dependability of route salesmen, and excellent customer service at both the B2B warehouse and retail storefront. Most of their current business comes from repeat and referral customers. The business is recession-resistant, and a new, energetic owner can further increase sales & profits in many ways such as 1) expansion by adding new routes, 2) expansion by adding new geographic markets, 3) Using technology to replace handwritten invoices, 4) explore cost reduction by joining a purchasing coop, 5) adding new products to cross-sell to existing customer base, 6) direct marketing to target businesses to increase customer base, 7) begin soliciting and promoting social media reviews on social media networks, search engines, 8) increase online presence.
Purchase Price: The asking price for the assets of the business is $700,000 with $140,000 CASH down payment and balance financed as an SBA7(a) loan. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the seller. All financing is to be personally guaranteed. Seller prefers to sell for ALL-CASH. The assets include Accounts Receivables valued at $48,800, inventory at cost of $150,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $68,000. The price will be adjusted for actual inventory, work in process (WIP) and accounts receivables as of the sale date.
KEYWORDS: chemical blending cleaner cleaning solvent chemicals supplies tools finishing dressing wax polish soaps detergents dealerships chemist laboratory packaging bottling aerosol compounds upholstery detail carpet rug chrome specialty inorganic sanitation sell my Car Care Chemical Manufacturers & Distributors business for sale
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Property Features and Assets:
The business occupies approximately 10,600+/- Square Feet in a mixed use industrial area with easy access to major thoroughfares. A long-term lease at $7,400/month with options, is available to a qualified purchaser.
Market Competition and Expansion:
The business has built a strong reputation over 30+ years for quality products, reliability and dependability of route salesmen, and excellent customer service at both the B2B warehouse and retail storefront. The primary marketing strategy is direct sales to new and used automotive dealerships, detail shops, body shops, car washes and wholesale sales to independent route salesmen who supply customers/clients/businesses who need car wash and automotive detail supplies. Leads primarily come from customer referrals and supplier referrals. They distribute their products through direct sales (route trucks) by 5 route salesmen plus a small retail component to the public. Much of their current business comes from repeat and referral customers.
The business is recession-resistant, and a new, energetic owner can further increase sales & profits in many ways such as: 1) expansion by adding new routes and geographic markets, 2) implementing technology, 3) explore cost reduction via a purchasing coop, 5) adding new products to cross-sell to existing customer base, 6) increasing online presence.
Reason for Selling:
Retirement
Additional Details:
- The property is owned.
- The owner is not willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
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