Wholesale Distributor Of Herbal Products Listing ID: 1010 Location: MDR, California
Brief: Price recently reduced from $600,000
Listed Price: $495,000
Total Revenue: $928,315
Seller's Discretionary Earnings: $255,386
Fixtures Furniture, & Equipment: $30,375
Real Estate: None
Inventory: Approximately $180,000
Financing / Terms: Negotiable
Business Information
Year Established: 1994
Number of Employees: 4
Days and Hours of Operation: Mon - Fri, 9am - 5pm
Relocatable: Yes
Franchise Information: N/A
Facilities / Location: The business occupies 1,247 square feet of office, administrative, and warehouse space. In addition, the business also maintains warehouse space on a month-to-month basis to store pallets of inventory.
Lease Information
Lease Expiration Date: October 30, 2007
Option: New follow on lease available to buyer.
Monthly Rent: $1,665
Additional Information
Reason for Selling: To pursue another business opportunity.
Business Description: The business serves primarily as a wholesale distributor of herbal products,
including cigarettes, other smokeable products, pills, raw extracts and herbs,
cleansing products, vaporizers and related accessories. The primary markets in which the business participates includes the tobacco industry, the smoke shop industry and to a lesser extent, the adult market. The business caters primarily to a target market group end user in the 18 to 35 age range. The herbal cigarettes (made of vegetables and herbs), are tobacco and nicotine free and hence are believed to eliminate addiction. Accordingly, these products are targeted toward those seeking to quit the use of tobacco. Thus, although the business does not promote the sale of these tobacco-free herbal cigarettes as a safer alternative to tobacco cigarettes, they contain no additives or nicotine and hence are believed to reduce and/or eliminate addiction.
Potential for Growth: For the fiscal year ended September, 2006 (compared to the preceding
period ended September, 2005), sales increased by seventy (70) percent
and Seller’s Discretionary Cash Flow increased by nearly five hundred
(500) percent. This increase is attributable to the introduction of new products into the business product line which were aggressively marketed directly to the business wholesale customers and at various tradeshows.
