Summary
Franchised stone and paving manufacturer in Bloemfontein.
Give me more informationFully describe the business's activities?
Although the product is handmade, every piece is precision-engineered to work as part of a greater unit. They don't simply supply products – they supply, design and consistency with the end result in mind. The appearance of concrete paving products is only one part of the equation because they understand that you buy driveways, patios, paths or pool paving and not just loose pavers or tiles. They help home-owners select the right concrete paving for each project and are committed to the best possible design to ensure that significant value is added to your investment.
Their goal is to make products readily available to all, so they developed a national footprint through a licensee program that extends throughout South Africa. Beyond South African borders.
Their products are also sold in Mozambique, Swaziland and Lesotho, while a fully-fledged manufacturing plant has been opened in Zambia. The franchise is a member of the Concrete Masonry and Hardscapes Association, which proves their commitment to the advancement of paving and concrete products, as well as assuring their clients that they are buying the best possible quality paving.
How does the business operate on a daily basis?
The manufacturing plant is run by a trusted manager with the owner providing oversight on both the manufacturing plant side and on the sales front.
What Advertising/Marketing is carried out?
Website
What competition exists?
Our client has the lion share of the market.
While there are two large paving producers in Bloemfontein (CEM Brick, Empire Brick) they don’t really see them as direct competitors. They cater largely to the customer who is price conscious / functional, and not looking for a creative or designer type of product that will enhance the appearance and value of their property
How could the profitability of the business be improved?
Give a breakdown of staff/ functions/ length of service?
- Marketing / design / sales management
- Factory manager
- Sales Office manager
- Factory Supervisor / Assistant manager
The balance of staff members are general laborers in the factory.
Do any have management potential?
How involved is the Owner in running the business?
When does the current lease end?
A buyer will need to commit to buying the property/factory premises from the seller within a 2-year period after effective date.
Property price = R2.1 million.
The factory premises is situated in an industrial business area and consists of an office, factory and large yard to store finished product.
The showroom and retail area are offsite in a suburban area, displaying the bespoke paving and cobbling products in a beautiful garden setting.
What are the trading hours?
What are the main assets of the business?
Strengths?
They cater for a niche market.
They pride themselves on a wide range of products.
They offer discerning customers a better choice of products, colours and finishes to suit indoor and outdoor applications.
Stock levels - they keep a reasonable amount of stock and are usually able to supply contractors directly from stock, avoiding / reducing construction site delays.
They use borehole water and do not rely on municipal water supply.
They have established agents in Bethlehem and Kimberley who regularly buy stock to supply their customers
Weaknesses?
Opportunities?
Threats?
What is the reason for the sale?
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