LocationSouth Africa, Mpumalanga

Sector - Sales & Services

Asking Price
Monthly Profit
R 54,308
Asset Value
R 4,822,143
Stock Value
R 800,000
Yearly Net Profit
R 651,690


This business is well know throughout the Lowveld 12 well located depots are served by a modern factory - the business is selling their own range of cleaning chemicals and is servicing Kirby vacuum cleaners

Give me more information

Fully describe the business's activities?

The business is known as being the best drycleaner in the provincial capital - a true market leader
Its services include quality dry cleaning of garments, curtains and carpets, laundry bundles by weight and as a complimentary service will include basic alterations and repairs where possible.
Collection is done from 12 depots that is located in prime locations in the greater area
This goods are cleaned at the central "' factory "" where most of the staff are employed
The business is offering a same day service , but a 2 day turnaround service for the outlying depots
The latest technology and systems is used to ensure that customers are enjoying the best service and that the business is operating on a optimal level
Other laundromats are outsourcing part of their business to this drycleaner
As a value added service the business is also selling its own branded cleaning chemicals
This cleaning chemicals are delivered to all surrounding towns
The business is also the Kirby Service center for the Lowveld area

How does the business operate on a daily basis?

Clothing and goods are collected for various depots in the area and brought to the dry-cleaning factory
Depot managers are receiving goods from the public using an accurate system
All depots and vehicles are under video and online surveillance
At the factory all goods are cleaned and managed in a well managed procedure using modern methods
The goods are returned to the depots on a short turnaround time

Collection and delivery to and from the depots are on a daily or every second day
All sales and deposits from the depots are monitored online

Kirby machines are serviced by the inhouse technician

The representative of the business is visiting depots and regular clients
At the same time the Rep is also doing marketing and sales of the cleaning chemicals
This cleaning chemicals is covering a wide range of applications

What Advertising/Marketing is carried out?

Although the business mainly use social media for advertising did they recently also do radio adverts on Bushbuckridge Radio, Voice of Hope FM and Radio Laeveld. The radio adverts are 4 x 30sec ads per day and very catchy and informative
The business also do regular activations in outlaying areas with 3rd year marketing students from TUT. During these activations they distribute flyers, interact with the public and run monthly competitions.
Online adverts are also done in local newspaper in the Lowveld.
Once a new depot opened , they are advertising in the local newspapers and run articles for at least 3 months to spread the word and give information about their service.

What competition exists?

There is very few dry-cleaning businesses in this area
Other laundry services can't be regarded as competition

How could the profitability of the business be improved?

Fixed costs are mostly covered at the ""factory depot "' - it will make since to open more depots in the area .
This business is sought after by developers of shopping malls - good leases with preferential rates can be negotiated

The product range of the chemicals can be expanded and marketing can be more aggressive

The Kirby service center also has growth potential

Give a breakdown of staff/ functions/ length of service?

This business has a stable workforce that is skilled in their tasks
Many employees are working for this business since the 1990s
13 x depot managers
3 x drivers
2 x admin staff
8 x drycleaner factory workers
1 x Rep
1 x responsible for the chemicals and the Kirby repairs

Do any have management potential?

Yes, there is a few with management skills.

How involved is the Owner in running the business?

The owner is involved in the strategic planning and decision making proses
The owner is also overseeing the financial function
The business has installed many online systems - this makes it possible for the owner to monitor many of the business functions remotely
This might be ideal for a couple that is looking for a business that is offering more flexibility in terms of involvement and management style

When does the current lease end?

The owner of the business is also owning the property
The property registered in a different legal entity and will be available at a price of R 2.5 M
Much of the profits was used to cover the bond as soon as possible

What are the trading hours?

The trading hours for the drycleaner factory is weekdays 7am to 4pm
The depots are operating from weekdays from 8am to 5pm
Depots are also open on Saturdays from 8am to 1pm
Only a few of the depots are also trading on Sundays

What are the main assets of the business?

The main assets of the business is the infrastructure at the dry-cleaning factory
The main assets of the business is the infrastructure at the dry-cleaning factory: Boiler room with optimized systems (Cyclotherm boiler)
2 x ILSA dry cleaning machines (Italian machines supported by a local company for servicing)
3 x Sped Queen industrial tumble driers
3 x VW Cadies for delivery and pick ups
1 x NP200 Nissan bakkie for chemical deliveries
13 x depots with point of sale (custom designed POS) and security systems


This is a easy manageable business offers that offers the owner flexibility in terms of involvement and management The business is positioned in the higher SLM segment
Modern management and control systems in place
The business is already the market leader
Large cash income component


No substantial weaknesses were identified


Constantly open more depots in new malls and developments
Growth in the chemical business by marketing and diversifying the product range
More related value-added services like the Kirby service center


Besides normal economic challenges , no threats were identified

What is the reason for the sale?

The sellers are entering a new phase in their lives
They are consolidating their businesses to spend more quality time


Contact | Enquire


Arie Roos

LocationSouth Africa

Preferred method of contact

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