Multiple income streams on tap
APROFITABLE store with Lotto and NZ Post franchises is for sale in Island Bay ahead of the Christmas rush. Island Bay Video, Lotto & Postal Service, at 140 The Parade, opened 24 years ago and last changed hands in 2004.
‘‘It’s in a top location, surrounded by shops, cafes and a supermarket, and the main bus stop is just outside the store,’’ Ben Thomas, of ABC Business, says.
‘‘Island Bay is a huge family area, WE ARE looking for stories on businesses for sale. To be considered for a story on this page please email details to:
Belinda.Kerr@dompost.co.nz so the demographics couldn’t be better for video rentals and game hire.’’
He points out the business provides multiple income streams, from home entertainment to Lotto (‘‘it’s been a ‘Gold’ store 13 times for exceptional performance’’) and NZ Post (‘‘ranked 15th busiest out of 180 nationwide’’).
It also generates turnover from Westpac Bank money machine rental; photocopying, USB printing, faxing and laminating services; and stationery and confectionery sales.
‘‘If not for health reasons, the owners wouldn’t be selling,’’ Mr Thomas says.
‘‘They have identified opportunities for growth but already enjoy a significant annual surplus for the 30 hours they work between them each week.’’
They also roster five staff for 25-35 hours a week and pay $250 a month for an online DVD ordering system run by Channel X, a DVD buying and distribution network for independent rental businesses.
Mr Thomas says the Lotto and NZ Post franchises will be transferred to a new owner subject to approval by Lotto and NZ Post, with payment of a modest franchise fee to each, and franchise training.
‘‘Seldom do we see businesses that are being operated as professionally as Island Bay Video, Lotto & Postal Service.
‘‘New owners will be able to reap the benefits of the operational systems, well maintained premises with no earthquake issues, and the store’s excellent relationships with suppliers, franchisors, and customers alike.
‘‘They could walk in and simply continue to operate the systems already in place and, after some initial training, make an excellent return from day one.
‘‘Also, if the business was sold by early December the new owners would reap the rewards of Christmas Lotto and postal service sales.’’
The business has an asking price of $379,000 (plus stock at valuation).
For more information, contact Ben Thomas 04 499 1538, 027 449 3757 or at: bent@abcbusiness.co.nz.