Service Repair MOT And Sales Of Vintage Lambrettas For Sale

Business description

Service, repair, MOT and sales of vintage restored and un-restored Vespas and Lambrettas

The latest version of a business that has its roots in the Mod era, this business is a one stop shop offering the service and repair, MOT and s wide range of parts and accessories for scooters. Whilst this business can lend a hand to virtually any two wheeled vehicle it is targeted not just at the biker or scooter enthusiast – but those with a particular interest in vintage Vespas and Lambrettas. Offering a few vintage scooters which this business sells on behalf of owners on a commission only basis, this business is best known for supplying vintage restored Vespas and Lambrettas which this business sources through excellent contacts, mainly in Italy and Spain. Such is the service available from this business that it is well known for fulfilling a customer’s dream. This business is frequently called upon to recreate in every single detail, a scooter, a purchaser had in their youth, right down to the design on the seat!

Situated in ‘destination outlet’ premises – visited by enthusiasts drawn from all over the south of England and attracted by the business’s specialist knowledge, skills and expertise, this business has full repair and workshop facilities together with a MOT bay with the facilities to provide Class I and Class II MOT’s. For MOT’s it services both the general public and the trade, also servicing local motorcycle outlets – which represents approximately 50% of MOT turnover. The business also stocks a good range of quality budget priced tyres and a selection of spares – both new and ‘new old’. And if this business doesn’t have a part in stock it is able to order it for prompt delivery. In this respect this business does a very healthy trade on e-bay with ‘overnight’ deliveries to the orders t receives. Most of its stock is a large volume of Lambrettas and Vespas in varying stages of repair – from ‘as found’ through to ‘as good as new’.

The loyal customer base is quite broad – with a large proportion looking to recreate the enjoyment they gained from the scooters they rode in their youth. Many are high net worth individuals and expect – but are prepared to pay for - the very high levels of customer service this business offers. The business is always willing to go out to collect a vehicle at times convenient for its customers for repair, service, MOT or a re-spray. It also has a number of affiliations in place with associated businesses including Insurance companies and Bikers Legal Defence.

This is a very well established business benefiting from high levels of awareness amongst its customer base – and with an excellent reputation. With turnover for the most recent year for which figures are available in excess of £80,000 generating gross margins in excess of 50%, this is an excellent opportunity for a new entrant - a vintage Lambretta or Vespa enthusiast for example, to ‘run their own show’ or for an existing operator to acquire an outlet specializing in vintage scooters.

Key strengths:

This is a very well established and popular business benefiting from very high levels of awareness amongst its target audience. It has a fairly broad customer base – from scooter owners looking for the very best in spare parts, service and repair right through to high net worth individuals coming to this business to recreate right down to the very last detail, the Vespa or Lambretta they had in their youth. Fortunately this business has all the skills, knowledge and expertise to deliver – including stocks of tyres, spares and machines in varying stages of refurbishment – and a reliable supply chain to provide what isn’t readily available.

The cornerstone to the success of this business is the old fashioned customer service it provides. Simply, nothing is too much trouble. The business will collect vehicles for service, repair, re-spray and MOT any time, day or night. For restorations the business has even been known to deliver on Christmas Eve. It has a high level of technical expertise and maintains close contact with customers throughout every stage of every project. Not surprisingly the business can boast an extensive, loyal customer base, many of which travel miles just to pop in for a coffee and to discuss their machines.

This business is ideally located in very well suited premises in an area with a high volume of classic scooter ownership – and en route to the biggest scooter festival in the world. It has excellent service and repair facilities including one of the very few MOT stations capable of dealing with motorcycles within its immediate area. The MOT income alone covers its overheads. The business also has a significant e-bay presence ensuring high levels of sales via the web which also assists its rankings in the major search engines.

Key opportunities:

There is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's services, a new owner contributing fresh ideas, motivation and enthusiasm will have every advantage of building on an excellent platform.

This business maintains an extensive base of satisfied customers, who appreciate the company's top quality service at very competitive rates. There are many excellent avenues for growth, especially with investment in resources. This business would certainly benefit from an ability to maximise economies of scale by increasing its buying power of spares and scooters for restoration. This in turn would enable the business to sell fully restored scooters in to the trade. Currently the business outsources all of its paintwork – there is certainly sufficient space on site to bring this part of the business in-house by employing a painter/sprayer and building a spray booth.

Additionally whilst the business already has a steady MOT turnover representing between £1,000 and £1,500 per week there is scope to increase this significantly by further marketing to the local trade as well as increasing its private sales in this area by building a database for issuing MOT reminders etc. There is also the opportunity to extend this business’s presence at other fairs attended by scooter enthusiasts and by entering the very lucrative market for scooter accessories.

Customer service:

This is a very friendly business with its staff ‘hitting it off’ with everybody that comes through its doors. Knowledgeable staff are always on hand to advise and help and this business goes out of its way to ensure that every customer gets the most enjoyment out of their scooter.

Competition:

This business benefits from very little competition – particularly in relation to its restoration business – mainly however due to its unique combination of friendly and approachable service, high levels of technical expertise and competitive pricing.

Financial information:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover for the financial year ending July 2008 was slightly in excess of £80,000 generating gross profits of approximately 50%.

The Asking price of £150,000 is for a sale of the assets and goodwill to exclude the stock. Stock is estimated to be worth approximately £60,000 for spares/new parts and £40,000 in scooters in varying stages of renovation.

Property information

Property:

Leasehold

Lease terms:

Rent is £500 per week to include utilities with Rates of £3600 per annum.

Location:

This business is ideally situated in very well suited premises on a small industrial estate on the outskirts of one of Hampshire’s major towns. A ‘destination outlet’ the business is easily accessed via the A3, M3 and M27 motorways and is a frequent stopping off point for visitors to ‘The Holy Grail’ the world’s biggest fair attended by scooter enthusiasts.

Leased, the premises are approximately 4,000 square feet in all – approximately 80% of which is given over to workshop facilities and parts storage with the remainder dedicated to retail – and a coffee bar. Rent is £500 per week to include utilities with Rates of £3600 per annum. The premises include an MOT bay suitable for Class I and Class II inspections. There is the capacity to build a mezzanine floor in the premises which could be used as a ‘build up’ area for the renovation of scooters.

There is ample parking on site - the business has designated parking for MOT customers, parking for up to 12 scooters directly outside the premises as well as four allocated parking spaces for the owners and employed staff. There is also a double bay which could take a lorry or a van with trailer with two further spaces.

Other information

Competition / Market:

This business is a prominent ‘player’ in a very niche market. As such it benefits from very high levels of awareness and a superb reputation arising from its excellent workmanship and customer service. The business has a regular, full colour display presence in the specialist consumer press – with which it has a very good relationship generating valuable free PR coverage and consistently appears at The Holy Grail festival at which it does an excellent trade in spares and parts. It also has a prominent advert for the business close to the local docks – aimed at the truck drivers going through the local ports, many of which are regular customers. In store the business offers very high quality coffee – a good generator of traffic to the business, as a place for enthusiasts to meet and discuss their scooters. The business also has a very well designed, informative and easy to navigate website which performs very well in all the major search engines for all appropriate search terms but by far the most cost effective form of marketing for the business is word of mouth recommendation – testimony to the high regard the business has established amongst its target audience.

Support & training:

The current Owners will provide all necessary training and handover to ensure a smooth transfer of the business to new Owners. Being scooter enthusiasts themselves, the owners would also consider the possibility of retaining some kind of stake in the future of the business, subject to negotiation.

Reasons for selling:

The current Owners wish to pursue other business interests.