Wholesale Yarn Importer and Distributor Listing ID: 1011 Location: Relocatable, California
Brief: Well known established business, with explosive growth potential. Includes inventory and is priced for a quick sale.
Listed Price: $375,000
Total Revenue: $400,808
Seller's Discretionary Earnings: $125,582
Fixtures Furniture, & Equipment: $9,875
Real Estate: None
Inventory: Approximately $50,000
Financing / Terms: Available to qualified buyer.
Business Information
Year Established: 2000
Number of Employees: 2 Full-time.
Days and Hours of Operation: Mon - Fri, 9am - 5pm
Relocatable: Yes
Franchise Information: N/A
Facilities / Location: The business currently occupies office, administrative and storage space located in Southern California. Effective
January 16, 2007, the business shall be relocated to the owner’s residence and become a “home based” business. The business can easily be relocated anywhere in the United States as the customer base is nationwide and
customers do not visit the business facility. In addition, the business maintains 2 storage bins for inventory.
Lease Information
Lease Expiration Date: See: Facilities and Location section.
Option: See: Facilities and Location section.
Monthly Rent: $1,640
Additional Information
Reason for Selling: Following sale, owner to relocate outside the country.
Business Description: The business operates as a wholesale yarn importer and distributor that
supplies fine yarns (very unique and well recognized label known throughout industry) and accessories to a broad and diverse customer base of more than 500 stores throughout the United States, Europe and parts of Canada. Currently, all sales orders are received on a daily basis either from the customer directly or through one of 12 sales representatives (which cover US, Canada and Europe) by telephone, email or fax. This business model follows a simple formula of receiving orders, generating invoices, and packaging and shipping the product, usually within the same day.
Potential for Growth: In the latter part of 2006, the business developed a new yarn (no other manufacturer has been able
to replicate the touch and feel associated with this yarn) which is much lighter in
weight and is therefore very suitable for summer knitting projects. The existing yarn products offered by the business are better suited for winter knitting projects. This business strategy will be a major step toward promoting strong yarns sales throughout the entire year and eliminate the dependency of strong sales on cold weather (in the
past, the strongest months in terms of sales were the coldest winter
months of October through January). This will undoubtedly restore sales to 2005 levels of $600,000 which decreased due to an extraordinarily warm winter.
In addition, the owner has developed several other novelty yarns and accessories, including various types of project carry bags and a unique style of hand crafted knitting needle recently patented and included as part of the sale of the business. This product has yet to
be fully marketed and it is anticipated to be a huge success. Finally, in an effort to further boost sales, a brightly colored plastic version of this knitting needle can easily and inexpensively be manufactured in China and marketed on the QVC Home Shopping
Network and introduced to various larger
chain stores which sell yarn. The plastic version would sell for much less and
therefore be more popular than the hand crafted version which the business intends to market as a more exclusive knitting needle. In either case, these newly patented needles respond to an inherent problem associated with the current knitting needles on the market today.
