Used Equipment Marketing Business For Sale

I am retiring within the next few months and the www.ucpe.com website and the supporting database are for sale right now. The business markets redundant used equipment associated with the production of animal feed and pet food and with cereal, seed and pulse cleaning, handling and drying. It also deals in machinery for greencrop drying and handling, fertiliser handling, wood shavings baling and wood fuel pelleting. For someone with the right skills, experience and enthusiasm this business has excellent earning potential. I have spent four years and a lot of money getting the system up and running but there is still some work to be done before the system reaches its full potential. The database has been tailored to the requirements of UCPE.com using Microsoft Access and comprises :-

• Mailing list with about 1200 entries some of which require updating. This is an ongoing task.
• An easy system for entering new names and addresses and for categorising the entries so that mailing, faxing or e-mailing can be targeted to specific groups.
• A system for faxing directly from the screen, no paper involved. I have not used this facility.
• A label and envelope printing facility using mail merge.
• Normal e-mailing via Outlook Express which can be used for block e-mailing to specific groups.
• A system for entering all machines for sale with vendor details, price, commission percentage, dates and invoice information.
• A system for grouping and categorising machines.
• A system for sorting machines by specific dimensions.
• Printing facilities for hard copy of the stocklist. The full list can be printed or just specific categories if target mailing is required.
• An as yet undeveloped facility for including machine photographs.
• Matrixstats weekly analysis of sessions on the website. This tells how many pages have been looked at, for how long, which pages, which servers/browsers are used and which countries the viewers are from. There are currently around 500 sessions per week on the website.
• A model contract to safeguard the interests of the business when selling items that do not belong to it.
• An internal history system that will allow analysis of sales.

Areas of potential to fully exploit the website that remain unexplored are :-

• The establishment of links to other web sites which could lead to more people finding this site.
• The sale of feed mill consumables through the website, items such as beaters, screens, dies, roller shells, filter bags, stitcher thread etc.
• Displaying advertising material for clients who wish to target the same industries but whose interests does not conflict with the main business of the website.
• A more vigorous approach to export enquiries. This site generates many enquiries from abroad but I do not have the facilities to service them adequately.
• Broadening the range of products that are offered to attract more export enquiries. Redundant flour milling equipment and oil seed crushing and oil extracting equipment are sought after in developing countries.
• Selling web space to customers to allow them to display their used equipment along with their name and address so that buyers go direct to the vendor. No commission but sale of web space instead.

I operate as a sole trader with no employees and I own no equipment so can take no advantage of the "spin offs" that come with the job. If you have a labour force and already buy and sell used equipment, or would like to, these areas of potential will interest you :-

• I get export enquiries that I cannot handle as I have no staff to deal with cleaning equipment, loading containers and dealing with documentation.
• I am often asked if I want to buy equipment to get rid of it quickly. I have been offered equipment for nothing if I will take it away.
• I have been asked to dispose of three complete plants in the past year and I have had to find the labour and manage the entire project. I have also been asked by buyers if I can install items that they buy. I have probably kept two men in work dismantling for the past twelve months.
• Often buyers of used equipment are setting up pilot plants to try something new without spending vast sums of money. I get quite a lot of consultancy work as a result. There is potential for installation work in this area.
• Every enquiry is another potential customer for your full range of services.
• I believe that for every £1000 of equipment I currently sell there is the potential to more than double the earnings by taking advantage of other profit centres such as plant removal, plant installation, reconditioning, plant design, the supply of additional new equipment and the manufacture of supporting steelwork etc.

I operate the business on a full time basis including some fee paying consultancy work. I take up to10 weeks holiday a year (which probably makes it a part time business) but try to keep things rolling by having my mobile phone with me whatever part of the world I am in. I operate as follows :-

• I update the website myself, usually once a week, using Terrapin.
• I do all the stocklist and label printing myself on a laserjet printer. I try to mail everyone at least once a year but it should be twice a year. Currently a second class mail shot costs about 70p.
• I advertise from time to time using mostly Agricultural Supply Industry a weekly publication and Farmers Weekly but I have used Feed Compounder, Packaging Today and Industrial Exchange and Mart. The best value for money is mailing.
• I take a commission of 10% of the invoiced sale price of any item I sell for a client although current mailing and the website carry a new figure of 15% which I have not invoked yet. If there is a lot of equipment on one site or if I am doing a complete plant disposal I ask the vendor to sign an agreement giving me the sole rights to sell his plant for maybe six months.
• The business is not a limited company and is not registered for VAT.
• I visit sites where, in my opinion, there is enough equipment to justify the cost. I do a full plant inventory and photograph machines. I value the machines and enter them into my database but put a "hold" on them so that they do not go onto the website or to the main list. I issue a list of those items, with prices, for the clients approval or modification. When approved I release the items from "hold" and they then enter the live system.
• There are items on my stocklist that I have not seen but I do ask for photographs to be sent if possible.
• All photographs are digital and held in Photoimpact on my computer. They are filed under customers names and can be quickly e-mailed to potential buyers.
• I have standard forms for issuing instructions to clients to send invoices to buyers.
• The website and stocklist carry terms and conditions of purchase, payment terms and Health and Safety issues.

For potential purchasers :-

• I value my used equipment marketing business at £20,000 but I will consider offers in that region.
• The buyer will get the website, database which includes the mailing list, photographs and e-mail addresses. As a fully functioning business there is a lot of value in the goodwill that I have built up. All the job files and supporting technical information will be available if required. I reserve the right to retain enough technical information and contacts to carry on my role as engineering director of a wood based cat litter manufacturing business in Russia.
• Copies of the last three years accounts can be made available together with the spread sheets that I prepare for the accountant giving details of income and expenditure.
• After the hand over date I will refer all enquiries, however received, to the new owners.
• The price I accept for the business and the payment structure will depend on whether or not the new owners require my services. I would be prepared to have a consultancy agreement for a limited period during the transition of the business.