Fire Sale! Tire & Wheel Retail and Service Location-South Denver, CO
Fire Sale! The Sales Price has been set below the market because owner has to sell quickly for family reasons. This business has upside potential in both earnings and has equity building through growing the current location and by adding additional locations. This is a very simple business with a model that has a very high profit margin with consistent demand.
TIRE AND WHEEL RETAIL AND SERVICE LOCATION
South Denver Colorado on a Major Street with Heavy Traffic
The 2018 earnings were 181K on 710K In revenues. 2019 is trending higher than 2018 in both revenues and earnings. This company is priced at 260K which is priced UNDER 1 ½ times the 181K in earnings. Owner believes the current location is capable of doing at least 1.5M in revenue which is over 1.6 times the current revenues.
They sell both new and used tires at a discount. Most of their sales are pre-owned, quality used tires (80% of tire sales) which saves their customers up to 70% of the cost of a new tire. Used tire sales is the primary revenue stream for the business with 3x’s the gross margin of new tire sales. They have developed strong relationships with some of the largest used tire vendors (vendors who go out and find the quality used tires and sell them to used tire shops) in the Denver area. They also sell custom wheels, offers fleet pricing, has financing programs available, and provides customers with the strongest warranty in the Greater Denver Area. Services that they offer include tire mounting and balancing, wheel balancing, TPMS diagnostics, tire rotation, tire repair, and tire disposal.
They use a POS system that is easy to use/understand, provides a simple way to create/track/receive inventory, and provides them with a competitive edge over its competition.
Their online reputation is stellar – a 4.8 rating (out of 5) on Google with close to 600 reviews, a 5.0 rating (out of 5) on Yelp, and an A+ rating with the BBB. Currently the business only advertises online, investing between 2-2.5K dollars per month to drive new business and ensure it keeps the dominant position on Google.
The sales price is 260K with the owner willing to carry 15% of the purchase price. This may qualify for a bank loan but it has been priced to sell quicker than banks typically take to fund a purchase. They are an S Corp.