Computer Service Centre Warranty Repairs Business For Sale

Business description

This Computer Service Centre business has been operating in an inner eastern suburb of Melbourne since 2003. It derives the majority of its income from warranty repair work undertaken on behalf of three major Computer manufacturers and two Extended Warranty providers.

As the authorized service centre for these manufacturers and insurers, repair work is referred to the business on a regular basis. Warranty service work relating to the repairs on notebooks, Desktop PC’s, LCD TVs, Multi-Function Printers and Computer LCD Monitors which accounts for over 80% of all work invoiced. The business also installs and services high-end commercial computer networks.

Warranty claims are always paid within 30 days of billing by direct deposit. The remaining 20% of the work load consists of general repairs for which payments are made by cash, cheque or card.


Although the business is located on a busy arterial road with exposure to a high volume of passing traffic, it does not promote retail sales.

Included in the asking price is all Plant & Equipment required to operate the business. Stock levels are generally less than $5,000.

This acquisition opportunity would ideally suit an individual or partners seeking a solid business with a successful trading history, loyal customer support, strong cash flow and excellent further growth potential.

The vendors, who are pursuing other business interests, are prepared to train and assist the new owner during a suitable transition period and could be available to assist for a period on a part time basis if needed.

Operations:

Most warranty repairs are transported to and from the premises by courier.
Customers bring in small easy to handle repairs. Some service calls are necessary occasionally for larger or high-end items.

Hours of operation are 9 – 5 Monday to Friday.
Historically, the business has closed on public holidays and for 3 weeks at Christmas.

Market / Customer:

The majority of service work is undertaken on behalf of three computer and LCD manufacturers and three extended warranty providers.

Commercial and private customers throughout Victoria, Tasmania and West Australia are referred by the manufacturers to the business for all warranty repairs. The market for non-warranty covered repairs generally comprises Commercial and private users of electrical products who reside within a 10 km radius of the business.

Products / Services:

Service repairs are provided principally for Notebooks, Desktop PC’s, LCD TV’s, and multi-function printers that require service and repair under warranty. Repairs are provided on a cash basis when the warranty has expired.
All spare parts / training manuals and technical support are provided by the manufacturers as new products are released.

Service calls contribute less than 10% of the business income.

Premises:

The premises are strategically located on a major arterial road in an affluent inner eastern suburb of Melbourne. As such, the business is exposed to a high volume of passing traffic, both pedestrian and vehicular.

The shop is approximately 60 m2 in size, and street parking is available at the front.

The premises are divided into a reception/office at the front and a repair shop at the back, with 5 workstations. The current lease term is 3 years; however, it is likely that the landlord would be happy to offer additional lease extensions if required. The current rental is $27,500 pa plus outgoings and GST. The adjacent 60m2 shop which is currently sub-leased will also be available in May of 2009, should the new owner be interested in expanding into retail sales.

Equipment / Fittings:

All Plant, Equipment, and Fittings required to run this business are included in the purchase price, as is all existing stock consisting of spare parts to carry out repairs. The total estimated combined value of these is approximately $30,000.

Company Car:

There is one Company Car which is on a 5 year lease that ends in April 2012.

The monthly repayment is $704.42. This is not included in the purchase price but is open to negotiation.

Management / Staff:

The business is currently managed and operated by the two vendors as a partnership. In addition to the two owners (who contribute the equivalent of 1.5 FTs), the business employs a receptionist/accounts lady and one work experience technician on a part time basis. The subcontractor technicians are also available as needed for onsite network Jobs.

The vendors, wish to pursue other business opportunities and are prepared to train and assist the new owner/s during a suitable transition period and could be available to assist for an extended period on a part time basis if required.

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Property information

Real Estate:

Lease

Premises details:

The shop is approximately 60 m2 in size, and stree

Other information

Trading hours:

Hours of operation are 9am – 5pm Monday to Friday.
Historically, the business has closed on public holidays and for three weeks at Christmas