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Ann Arbor Area Mail-Pack-Ship Center 20027

#26882
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Jeannette026-FINAL 4 LIGHT GRAY

Jeannette Engel
Union Bay Group
(206) 783-1717

Business Overview

The business is a well-established premiere 15+ year-old independent retail shipping center offering full-service physical and virtual mailbox rental, UPS/FedEx shipping, USPS shipping, stamps & services, custom packing, LTL freight shipping, professional packing and supplies, copying, printing, fax, scanning, passport photos, notary, secure document shredding, retail greeting cards, specialty gifts, laminating and related products/services to residents and businesses in Southeast Michigan and surrounding areas. A knowledgeable and courteous staff provides personal customer service, knows most customers by their first name and is committed to making the customer happy and saving their valuable time at a one-stop location serving their Michigan county. The business is centrally located to several major cities including Ann Arbor, Jackson, Detroit and Toledo, Ohio.

The business is located in a busy shopping center with several major anchor national chain stores. This popular and busy shopping center has easy access, ample parking and, most importantly, is located at a high traffic intersection with 15,000+ cars passing daily. The business location is in a favorable economic demographic area. This very loyal customer base has discretionary income to spend on conveniences and services that save them time.

The owner-operator works approximately 30 hrs per week. The owner is not required to work on schedule but will work to cover store when employees are on vacation or executing outside sales such as freight pick up, estate sales etc. The seller states that the business has excellent books & records and is able to prove all sales & expenses.

The customer base is small-office/home-office (SOHO) businesses, corporate ?road warriors?, homemakers and schools. The owner estimates the customer base is approximately 65% residential and 35% business customers.

The owner feels that a major advantage over competitors is the trained, motivated, professional employee team, choice of multiple shipping services, longevity of the same store in one location and long-standing relationships with customers. The customers are happy with the service and committed to using the company. The business is recession-resistant, and a new, energetic owner can further increase sales & profits in many ways such as 1) continue adding national services through industry association, 2) strategically focus on growing mailbox rentals, 3) expand high quality custom packing and freight preparation services by leveraging strong reputation, 4) strategically focus on growing virtual mailbox services (very little incremental cost and virtually 100% profit), 5) add large format printing services, 6) increase advertising, 7) promote freight services.

Facilities: The business occupies approximately 1,500+/- SF office space in an upscale location in Southeast Michigan with easy access to major thoroughfares. The current 60-month lease term expires approximately December 31, 2025 and leased for $2,103/mo including NNN of approximately $359/mo). Seller believes that landlord is willing to offer a long-term lease and renewals to a qualified purchaser.

Competition: The retail shipping industry is very competitive. Barriers to competition include a) high franchise fees for non-independent owner/operators, b) well-established, loyal customer base, c) time to develop specialized industry knowledge for independents. The business attracts customers from a 10+ mile radius including some commuters who live outside this radius. Despite the presence of well-established competitors, the owner feels that customer service at the store is outstanding; employees are professional, well-trained and knowledgeable to operate the front of the business, pack, ship and sell. Customers are prepared to drive to this store for superior service and convenience.

Growth & Expansion: The business has built a strong reputation over 15+ years for quality and specialized work. Much of their current business comes from referrals and often as much as 10+ miles away. The Primary Target Market consists of a 65% consumer and 35% business mix within a 10+ mile geographical radius (but often covers the county). The seller has used the location, signage, word of mouth and friendly service to build the business. Additionally, advertising via social media networks, search engines and local media have been used.

The primary marketing strategy is word of mouth, occasional advertising and social media to customers/clients/businesses who need these services. Networking and referrals are the main method of marketing; minimal Internet marketing has occurred.

The current business model allows the Company to have repeat revenue streams with predictable and high margins. The business is recession-resistant, and a new, energetic owner can further increase sales & profits in many ways such as: 1) continue adding national services through industry association, 2) strategically focus on growing highly profitable mailbox rentals (target growing to 10-15% of total sales), 3) expand high quality custom packing and freight preparation services by leveraging strong reputation, 4) strategically focus on growing virtual mailbox services (very little incremental cost and virtually 100% profit), 5) add large format printing services, 6) increase advertising, 7) promote freight services, 8) evaluate textbook buyback services (well suited in a college county) and resell the books on Amazon for a healthy profit.

Support & Training: Seller will train buyer for 4 weeks included with the purchase price. Seller is willing to provide additional consulting or support at mutually agreed compensation for up to one year. Additionally, a highly skilled senior employee is able to train new hires on the daily operations of the business.

Reason for Selling: Owner has successfully, profitably grown business and plans to return to previous career.

Purchase Price: The asking price for the assets of the business is $450,000 with $100,000 CASH down payment and balance financed as an SBA7(a) loan. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the seller. Seller prefers to sell for ALL-CASH. Seller Financing is subject to Seller?s Approval, in Seller?s SOLE discretion and responsibility, of the Purchaser?s financials, Creditworthiness and suitability as the Purchaser. All financing is to be personally guaranteed. The assets include inventory at cost of $41,000, Accounts Receivable of $3,600 and FFE valued at $55,000. The purchaser will need to assume A) copier lease, B) credit card equipment lease and C) prepaid mailbox rental fees. The price will be adjusted for actual inventory and accounts receivables as of the sale date.

NOTE: The sale of a business is confidential and discreet; PLEASE DO NOT VISIT THE BUSINESS OR SPEAK WITH ANY EMPLOYEES. KEYWORDS: courier package route delivery mailboxes PostNet UPS Store Packaging postal pakmail postalmate PASS packaging and shipping specialists safe ship postalmate Shiprite AIM Jackson Lansing

Listing Details

  • SIC

    42, 43, 72, 73

  • Price

    $450,000

  • Downpayment

    $100,000

  • Adjusted Net

    $177,317

  • Annual Sales

    $816,663

  • Area

    N/A

Relocatable

Home Based

Franchise

Lender Pre-Qualified

  • A/R

    $3,600

  • Inventory

    $41,000

  • FF&E

    $55,000

  • Leasehold

    N/A

  • Vehicles

    N/A

  • Real Estate

    N/A

  • Other Assets

    N/A

  • Total Assets

    N/A

  • Included

    N/A

  • Current Liabilities

    N/A

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