| PROFILE: Mailroom Equipment - Sales, Service & Supplies |
| Status: |
Available |
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| State: |
California |
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| Location: |
Peninsula |
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| County: |
San Mateo |
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| City: |
None Given |
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| Primary Category: |
Service Related |
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| Alternate Category: |
None Given |
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| USABizMart Ad #: |
127076 |
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| Seller Or Contact: |
Steve Zimmerman |
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| Primary Phone: |
408-342-3093 |
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| Alternate Phone: |
None Given |
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| Email Address: |
See Form Below |
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| Date Ad Started: |
9/4/08 |
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| Date Ad Last Revised: |
9/4/08 |
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| Asking Price: |
$250,000 |
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| Down Payment: |
Call/Email |
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| Annual Revenue: |
$424,727 |
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| Annual Adjusted Net: |
$66,157 |
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| Franchise: |
No |
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| Relocatable: |
Yes |
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| Home Based: |
No |
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| Lifestyle: |
No |
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| Real Estate Included: |
No |
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| Bkr To Bkr Cooperation: |
Yes |
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DESCRIPTION: This Is An Excellent Opportunity To Acquire An Established Mail Equipment Sales, Service And Supplies Company Located On The Peninsula. This Twenty Five Year Old Company Provides Products To Businesses With Low To Medium Mailing Volumes. Low Mailing Volumes Are Up To 200 Letters Per Day While Medium Mailing Volumes Are Up To 2000 Pieces Of Mail Per Day.
Equipment Sales Include A Complete Line Of Mail Room Solutions, Including Digital Meters And Mailing Systems, That Allow Organizations To Manage All Outgoing Mail And Packages, Evaluate Customer Postage Use And Apply Postage Reliably And Quickly. The Business Also Offers Folding And Inserting Systems That Process Multi-Part Mass Mailings, Such As Large Direct Mail Campaigns And Invoices. Other Products Include Letter Openers/Shredders, Accounting Solutions And Mail Center Furniture.
Another Important And Stable Source Of Revenue Comes From After Sales Activities. After Sales Activities Provide Additional Revenue In The Following Areas:
A Recently Developed Partnership With A Leading Software Vendor Has Opened Up New Opportunities To Sell High-Margin And Lucrative Enterprise Software Solutions.
Web Sales Of Postage Meter Supplies
Service Contracts From Installed Equipment Base.
Residual Commissions From Manufacturer For Meter Rentals
Sales Of Supplies To The Installed Equipment Base
Most After Sales Activity Is Generated By The Regulatory Aspect Associated With Postal Equipment. United States Postal Service (Usps) Regulations Impact The Industry In Three Main Areas:
Limited Competition/High Barriers To Entry: The Mailing Industry Is Heavily Regulated By The Usps. There Are Only 3 Authorized Postage Meter Manufacturers In The United States. Postage Meters Go Through Rigid Testing By The Usps That Takes 4 Years To Complete. The Entire Process Of System Design, Post Office Testing, And Product Roll-Out Would Take Up To 7 Years. While It Is Possible To Develop Inexpensive Equipment, A Prospective Manufacturer Seeking To Enter The Us Market Would Need Usps Approval.
Postal Service Plan For Secure Postage Meter Technology: The United States Postal Service Is Undergoing A Meter Migration Plan Aimed At Transitioning The Installed Base Of Postage Meters From Specific Technology, Demonstrated To Be Susceptible To Fraud, To Technology Offering Enhanced Security. Thousands Of Meters Were Decertified Last December 2006 And Thousands More Have To Be Changed As Mandated By The Usps. Currently Underway Is Phase 4 Which Aims To Retire Meters That Use Outdated Technology. All Affected Meters Must Be Replaced By December 31, 2008.
Postage Rate Change: Whenever The Usps Implements Postage Rate Increases, Customers With Electronic Scales/Mail Systems Will Require Updated Software. Failure To Install The Update May Cause A Disruption Of Mail Service Or Delay In The Delivery Of Mail And Packages Due To Incorrect Postage. Software Updates Are Sold Every Rate Change. Rate Changes Have Occurred Every Year In The Last 3 Years And It Is Projected That The Usps Will Keep This Pace In Years To Come.
Three Key Players Dominate The Manufacture And Sales Of Mail Equipment. This Business Is A Dealer For One Of These Manufacturers Known As Francotyp-Postalia (Fp). Fp Offers A Full Range Of Mail Center Solutions Designed To Create Seamless Mailing Systems. Fp Is Known For Technologically Advanced Equipment, Excellent Customer Service And Very Competitive Pricing. World-Wide Headquarters Are Located In Birkwinder, Germany And They Provide Product Sales And Service Training At Their Us Headquarters Outside Of Chicago, Illinois. Fp Is The Only Major Mailing System Manufacturer That Operates Through Dealership Network. With Over 200 Dealers Across The Us And Canada, Fp Is The Fastest Growing Postage Meter Company For The Past 3 Years.
Geographically, This Business Covers A Wide Range Of Northern California Cities Over The Counties Of Santa Clara, San Mateo And Alameda. They Currently Have Over 500 Customers With Equipment Located At Some 600 Installations. Customers Include Retail And Commercial, City Governments, Schools And Universities. While Most Activity Occurs At The Customer Site, The Company Maintains A Walk-In Facility Centrally Located In Their Territory. The Shop Has Products Prominently Displayed In A Customer Accessible Area In The Front And A Repair And Inventory Area To The Rear.
The Current Owners, Who Purchased The Company In January Of 2005, Have Been Able To Take This Company From A -25% Growth Rate Over 3 Years Prior Our Acquisition, To A Growing Company Averaging A 105% Increase Within Only 2 Years Of Operations With A Modest Increase In Resources. Revenues Have Grown From An Average Of $193K Per Year To A Respectable $377K Per Year During The Same Period. They Have Been Very Successful At Penetrating New Markets That Were Previously Ignored Or Simply Untouched. New Clients Include The Addition Of Universities, School Districts, Local Governments And Very Significant High Profile Accounts Such As Adp, Brocade, General Dynamics, And More Recently, Applied Materials And The Veterans Administration.
The Business Is Currently Staffed With 1 Full-Time Technician And Two Full-Time Working Owners. This Is An Ideal Situation For A Hands-On Owner To Take A More Active Role In Growing The Business. An Outside Sales Effort, Focused On Corporate Clients, Would Significantly Increase Both Sales And Service Performance. After Doubling The Performance Of The Business, The Owner Has Decided To Pursue Other Interests And Pass On Their Expertise In Order To Insure A Smooth Transition To A New Owner.
* Offering Price Does Not Include Inventory |
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