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Salagatle!


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Tuesday, August 15, 2006

Stay or go.....

I had a good friend around last night for drinks, and a chat. He's a successful businessman, and has the dealership for K'a'rcher in his stable. http://www.shutterlock.co.za/

This is the logo for the product. I'm sure it's copyrighted, and patented and all, and I reproduce it here with all due respect and apologies if so required.

http://www.karcher.de/za/welcome.html

However, he gives it no attention, and in fact wants rid of it. He knows the potential, but is doing so well with his other business, he does not have the time, or inclination, to give this part any of his time.
So, he's offered it to me. The actual details of the deal we still need to work out, but it would mean me becoming self employed, and within 12 - 18 months owning this business / dealership. With no effort from his side, they currently turn over about ZAR1.4m per annum. He has one technician who does repairs etc., and carries about ZAR300k stock (spares and new machines) and has 1 LDV that does collections and deliveries.

I could / would operate from his premises for the first 12 - 18 months, but would then have to move out. I would "rent" office and workshop space, have to have at least 2 telephone lines installed, get computers etc., have to carry insurance, and running costs for the LDV....

I'd have to have a CC registered (I think the one I made dormant 12 years ago may be extinct now)..... It is a daunting prospect, and scares me more than staying put.

So, I'll have a long think, and then a chat with the Princess.... And then we'll see.

Salagatle!

5 comments:

Steven Douglas said...

Yo...what's happening here? Souf Efrican's blog is turning into a fuckin' advertising site (Smartphone, Shutterlock, Karcher...)...as if we don't have enough of these already. LOL..

In my experience, I would stay away form the Karcher stuff...it's too expensive, for one, which is why it doesn't sell like (more advertising here) Electrolux, AEG, Bosch, et al. Parts are expensive, and labour costs are ridiculous (mind you, it's not just Karcher that has that problem).

To me, the business sounds like a large investment, with not much on the returns side (only R1.4mpa?). What sort of a salary, as owner/director, would you be taking home and what would that be doing to the bottom line of the 1.4m?

My 50m Zim Dollar worth...

Wreckless said...

The market in this instance is industrial. Mining, manufacture and the like. In fact there is a chicken farm in potch that uses 1400 of them (one of the products).
As for the 1.4m per annum, it's currently "incidental" business. The current owner does no marketing / sales on the product. It's all repairs and new sales based on existing client base...
he estimates it can be upto R500k per month if managed properly.....

Salagatle!

jenny said...

Oh I don't half get frustrated when you lot talk money!!

R500k? R1.4mpa?? Yeah...so what's that in £'s???? Show some respect for your British readers who can't be arsed looking it up on google!

jenny said...

By the way...are they the same guys who make pressure washers and stuff?

I'm sure I've got one of them somewhere you know....

Oh and word verification is qhkbuk which if you say it right could be quick buck!

Seaman R/Bay said...

Hi

I think it is a great idea, you have lots of industry, mines to support your product even the man in the street is starting to buy them. What you would need to keep in mind are companies like Makro, Game, and Builders Market etc... Who also sell the same product are your completion and get better deals due to volumes they buy