Summary

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24 years, niche high profit margin business, niche dental drill repair business Est 1997. Operate from home OR office. High demand, high profit margin, repeat sales, fast receivables, no ad spend for 7 years, no cold calling & recession proof.

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Potential

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• No advertising for over 7 years and at the time was a very limited campaign to not be overwhelmed with work.

• Advertising achieved an increase of $80,000 of revenue.

• Targeted advertising could significantly increase sales

• Target more interstate customers

• Opportunity to sell new dental equipment with established trade partners which is currently not actively pursued

• Expand into other dental industry product areas

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Skills

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As a manager/entrepreneur looking to expand the business for growth: management skills.

As an owner operator: methodical, attention to detail, working with small parts, problem solving, patient, good hand dexterity. Technical and admin training will be provided as part of the business sale.

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Hours

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Generally 9-5 hours but due to no walk in customers hours are flexible to suit buyers needs.

 

Lease

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Lease expires in March 2022

1 further term of 2 years, plus 1 further term of 1 year

Lease not required.

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Reason for Sale

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Handpiece Headquarters (Australia) has been a specialized repairer of dental and laboratory handpieces (drills) and related products (motors, couplings, scalers, etc...) since 1997. It was started by its current owner/operator who immigrated to Australia in the early 1980’s. The business has steadily grown over the past 24 years and now the owner is looking to transition into semi retirement while continuing to work on a part time basis with the new owners.

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About the Business

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The business receives handpieces that require service and repair throughout Australia from dentists and dental specialists via post and couriers. A quote is prepared and emailed, if required but most jobs do not require quotes because of the large volume of work and trust built up over the years between Handpiece Headquarters and the customers.

The reputation for quality work at a reasonable price is the main component for the success of the business. Despite very attractive margins to Handpiece Headquarters, the cost to the dentists of new equipment is from 3 to 6 times higher than the cost of repairs by Handpiece Headquarters.

The items are repaired and shipped back to dentists. Replacement parts are ordered from suppliers overseas. New and refurbished handpieces, replacement bulbs, o-rings and lubricants are also sold to customers, while sales of new products hasn’t been a major focus there’s plenty of opportunity to increase sales of such goods. The business is highly regarded among dental professionals and staff, and they are happy to provide further testimonials.

CUSTOMER SEGMENTATION

• The business provides services to a range of dental practices from small one dentist run practices through to larger practices operated by corporations like BUPA Dental, Maven Dental Group and other private dental groups. The business is not reliant on or at risk of one or a few large clients.

• The majority of customers are Melbourne based dentists, but there’s an increasing number of interstate customers without any active advertising. Approximately 90% of customers are repeat customers and there are over 400 current active customers. Customers have offered to provide referrals to associates but due to existing capacity constraints these offers have not been actioned.

BUSINESS POTENTIAL

• The business has not actively advertised for over 7 years which at the time was a very limited campaign to not be overwhelmed with work. The advertising achieved an increase of $80,000 of revenue. Prior to that, the previous advertising campaign was 14 years ago which indicates enormous business growth potential and not difficult to achieve. The business has many direct customers and a small number trade based customers.

• The business is generally non-season in nature, resulting in even cash flow with no major peaks or troughs. Recessions, which can adversely affect many businesses are not a problem for Handpiece Headquarters because dentists prefer the cost saving repair of equipment rather than spending more money on new equipment during hard times.
   

History

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The business was established in 1997 after the owner discovered a new opportunity to provide repair services for dental handpieces in the Australian market. It was operated from a home-office until 2020 when it was moved to it's current commercial location for preparation of sale.

Now is the time for a new owner to take over and reap the benefits of long established business in a high value and needs based industry.