Value of a (non vending) business

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Snackspot
Newbie
Posts: 9
Joined: January 19th, 2009, 8:34 pm
Area Covered: Glasgow/Ayrshire
Machines Used: Bulk,Tower,Pringles

Value of a (non vending) business

Post by Snackspot »

hi all,
I am hanging onto this forum despite getting rid of most of my machines, and will get totally out when Noel pops over and gets the two remaining machines in my garage! :club: !! :D

I may be going to Dubai (50/50 chance)to work next year and my seed hobby/business will then be a little bit difficult to operate from there! so what is it worth???

I have been selling as a power seller for the last three years on ebay each year increasing sales, figures below show trend as I double items for sale each year and work out how to get best results on the site. eBay fees are approx 17% of sales and costs of stock average under 20% of sale price. I have over 5000 feedback and sit at 100% +ve and I am now a "top-rated seller"

2007 (Mar to Sept.)
sales £1836
2008 (Jan to Sept.)
sales £3828
2009 (Jan to end Aug)
sales £8059

I do not want to shut shop and my website if I do move as I believe someone could get value out of it, so could someone possibly value business for me?

I would have approx £10k-£15k (retail price) of stock included if I decide to sell.

cheers
Jon123
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Joined: January 20th, 2009, 1:37 pm
Area Covered: Cornwall
Machines Used: bulk vender

Re: Value of a (non vending) business

Post by Jon123 »

Hi Wil,
Loads and loads of different factors on this one. Kind off like vending valuation I would say.

Is it even possible to transfer over and ebay business? (I'm sure I heard somewhere you cannot)
Is stock bought from local wholesalers or sourced worldwide?
What makes your business work? Lack of competition? you undercut there prices?
What you say you turnover a month? how seasonal is the business?

What would stop anyone just doing what you do and matching sales?

Regards
Jonny
Vendition Ltd
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Posts: 444
Joined: August 5th, 2009, 10:15 am
Area Covered: chichester-eastborne-crawley
Machines Used: bulk tower - tubz vending/salysol and pringles
Referred by?: heard about this through the grape vine
Location: Sussex

Re: Value of a (non vending) business

Post by Vendition Ltd »

Hi Wil,

I also have an Ebay shop so this may tie in with what I do.

Could you tell me your profit margins on the figures you have produced. And how much competiton do you have on Ebay?

Also will yu be selling your vending business?

Kind Regards

Ross
Snackspot
Newbie
Posts: 9
Joined: January 19th, 2009, 8:34 pm
Area Covered: Glasgow/Ayrshire
Machines Used: Bulk,Tower,Pringles

Re: Value of a (non vending) business

Post by Snackspot »

Jon123 wrote:Hi Wil,
Loads and loads of different factors on this one. Kind off like vending valuation I would say.

Is it even possible to transfer over and ebay business? (I'm sure I heard somewhere you cannot)
Is stock bought from local wholesalers or sourced worldwide?
What makes your business work? Lack of competition? you undercut there prices?
What you say you turnover a month? how seasonal is the business?

What would stop anyone just doing what you do and matching sales?

Regards
Jonny
You can sell an ebay business. You can have up to 10 shops as long as each one has an id.

The beauty that I have found with the eBay shop is that if you offer a good speedy service then you get higher ratings, which means higher visibility and more sales, which means more sales etc. Various methods of selling, postage offers and cross promotion also help.

I also have my two ecommerce sites which brings in some money (£200yr), but I do not have time to fully develop this side. You need to try and push ebay buyers to this site by offering cheaper prices, but still save on ebay fees.

There are a lot other sellers of seeds on eBay, but from Jan to July there are so many customers that I'm sure they all do well. I get orders out as quick as I can and get approx 35 - 40% return customers. Because I sell lots I qualify for discounts and ebay fees this year have been about 10% of my turnover.

Just like vending service is king!

I buy seeds from three main suppliers, one gives me a 20% volume discount(in North America), one is the largest seeds wholesaler in Europe and the other main one is about the largest one in the southern hemisphere. I can also source seeds from Australia, India, Belize, Thailand etc!

Some of my seeds cost me 30-40p to package, but with these ones I sell for £1.50. Seeds I sell for 99p I can usually get for 2 to 25p per pack (I pack smaller qty’s). I sell lots of one type of seed at £2 and these seeds cost me less than 24p for 4 seeds! Another one I buy for $8 less 20% = £4. I usually get 40 packs out of this and sell them for £1.50 each = £60 income….

I started as a hobby/game, but there is serious money to be made. I will probably only be selling if I move away
Snackspot
Newbie
Posts: 9
Joined: January 19th, 2009, 8:34 pm
Area Covered: Glasgow/Ayrshire
Machines Used: Bulk,Tower,Pringles

Re: Value of a (non vending) business

Post by Snackspot »

spock wrote:Hi Wil,

I also have an Ebay shop so this may tie in with what I do.

Could you tell me your profit margins on the figures you have produced. And how much competiton do you have on Ebay?

Also will yu be selling your vending business?

Kind Regards

Ross
As listed before, cost of stock is between 2% and 35% of the cost(average probably 15%-20%). Ebay fees are now only another 10%. The cost of the postage roughly covers my paypal fees( I use paypal micropayments to save on fees), I get the jiffy bags for 4p each and the stamp 61p!

I have gotten out of vending and have two machines left that Noel is buying off me. I have a full time job which is currently based 70 miles from my house and takes up a lot of my time.
Jon123
Coin Op Group Regular
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Posts: 146
Joined: January 20th, 2009, 1:37 pm
Area Covered: Cornwall
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Re: Value of a (non vending) business

Post by Jon123 »

When do you know if you have to sell?

might be interested.

Regards
Jonny
Vendition Ltd
Coin Op Group Master
Coin Op Group Master
Posts: 444
Joined: August 5th, 2009, 10:15 am
Area Covered: chichester-eastborne-crawley
Machines Used: bulk tower - tubz vending/salysol and pringles
Referred by?: heard about this through the grape vine
Location: Sussex

Re: Value of a (non vending) business

Post by Vendition Ltd »

Hi Will so at present how much profit are you making a year?

Kind Regards

Ross
Snackspot
Newbie
Posts: 9
Joined: January 19th, 2009, 8:34 pm
Area Covered: Glasgow/Ayrshire
Machines Used: Bulk,Tower,Pringles

Re: Value of a (non vending) business

Post by Snackspot »

Jon123 wrote:When do you know if you have to sell?

might be interested.

Regards
Jonny
I had it up for sale on eBay in Jan this year and had a fair bit of interest, then the sales took off! so I kept the shop going. It would suit someone who has an hour or two free in the afternoon from Jan to July. I pack the seeds as I watch the telly from Oct to Dec and only restock big sellers during the season.

I will probably find out in Nov/Dec if I am going to Dubai and in what capacity as the job will possibly last until 2014!

I may however be interested in selling as I have been doing it as a shop for three years and as I said I have a stressful day job and could do with taking a step back.(well to refurb my old MX5!). The difficult thing is working out a price!

Cheers

Wil
Jon123
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Posts: 146
Joined: January 20th, 2009, 1:37 pm
Area Covered: Cornwall
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Re: Value of a (non vending) business

Post by Jon123 »

Tell me what price you are looking at, I could do with another shop on ebay to direct more traffic towards some off the garden furniture some good cross promotion with garden furniture could work well.

My concern is how easy it is for someone else to set up.

Finally how quickly will it take to learn the seeds etc.?

I'm young and don't have huge garden knowledge. I would run it as a business on spreadsheets to work out the vitals/ potentially getting relative who knows about gardening to that side but I think the traffic would work well with garden furniture and type of clientel.

PM what you thinking off sale price?

Regards
Jonny
Vendition Ltd
Coin Op Group Master
Coin Op Group Master
Posts: 444
Joined: August 5th, 2009, 10:15 am
Area Covered: chichester-eastborne-crawley
Machines Used: bulk tower - tubz vending/salysol and pringles
Referred by?: heard about this through the grape vine
Location: Sussex

Re: Value of a (non vending) business

Post by Vendition Ltd »

Hi Jonny. also interssted in this let me know how much your asking for it if you decide to sell up

Cheers

Ross
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