Profile: A 3 Word Description Of This Business It Would Be Profitable, Growing, Organized.
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Ad/Listing Information
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| Financial Information |
Detailed Information |
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| Asking Price: |
$439,000 |
| Down Payment: |
$439,000 |
| Annual Revenue: |
$1,127,000 |
| Annual Adjusted Net: |
$348,733 |
| Price Range: |
$250,001 to $500,000 |
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| Franchise: |
No |
| Relocatable: |
Yes |
| Home Based: |
Yes |
| Real Estate Included: |
No |
| Bkr To Bkr Coop: |
Call |
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Description:
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A Three Word Description Of This Business It Would Be Profitable, Growing, Organized. Another Description Would Certainly Be About The Future Potential Of The Business. While 2007 Has Been Difficult For Rv Dealers It’s Been Wonderful For Rv Rentals. It Seems Incredible And A Cliché But The Sky Is The Limit When It Comes To Future Growth Potential.
The Business Began In The Early Summer Of 2003 With One Vehicle, Quickly Several People Approached The Owner Wanting To Consign Their Vehicles To The Company's Rental Pool. By The End Of The 2nd Quarter Of 2004 All Consignment Vehicles Were Returned To Their Owners And Later That Year The Company Became A Fleetwood Rv Rental Dealer And Bought It's Own Vehicles. By Owning The Vehicles The Company Could Control The Quality Of The Vehicles To Make Sure The Customers Got Better Rentals Than Anyone Else Was Offering.
Marketing Consists Of An Excellent Website That’s Been Optimized. All Business Comes In Through The Website Or Referrals Or Past Customers.
By Then End Of 2004 The Owner Had The Idea Of Becoming A Dealer And Establishing 4 Locations In Southern California. He Quickly Realized The Amount Of Capital Needed Was Beyond His Means And Decided To Try The Rv Rental Business As A Starting Point.
The Business Took Off Quickly Since The Big Competitors Like Cruise America Have Limited Offerings Of Smaller Vehicles And Use Those Vehicles As Rolling Billboards. This Company Rents Everything From Toy Haulers To Class A Motor Homes Up To 40’ Diesel Powered Units Without The Annoying “Rent Me” Splashed Across The Vehicle. All Vehicles Are Replaced Each Year At Dealer Pricing And Last Year’s Units Are Easily Sold Off Wholesale To Other Dealers As New Ones Arrive.
Growth Potential Is Still Strong And Limited Only By Imagination And Capital. Through July 2007 The Company Revenues Are Approximately 26% Over Last Year At The Same Time. If The Trend Continues 2007 Revenues Should Exceed 1.4 Million. The Seller Says That There Is Lots Of Room To Grow In Southern California By Opening New Locations And Offering Other Services Like Repairs, Accessories, And Even New Vehicle Sales. He Could Probably Net 5,000 To 10,000 Per Vehicle If He Retailed His Vehicles When The Time Came To Replace Them.
New Units Are Acquired On No Money Down Basis At Dealer Pricing Using A National Lender And Individual Purchase Contracts.
The Company Is Profitable Although The Irs Tax Returns Show Annual Losses Created By Ddb Depreciation. If You Strip Away The Depreciation And Offset It Against The Gain On Sale Of Assets Created By The Annual Sales Of Vehicles The Cash Flow Numbers Start To Emerge.
In 2006 The Founder Decided To Take Advantage Of His Dealership Status With The Manufacturer And Open A Three Acre Facility To Handle Rental, Sales And Repair. In Preparation He Acquired About 40,000 In Additional Equipment, Contracted With An Architect And Hired A Service Writer And A Head Mechanic. Plans For This Expansion Fell Through In June 2007 And The Employees Were Terminated. He’s Replaced The Service Manager With A Junior Service Technician To Handle All Damage Related Repairs To The Fleet, Saving Over 60,000 Per Year In Expenses.
He Learned From This Experience That He Needed To Focus On The Rental Side Of The Business And Expand That Part Of The Business First By Adding Locations In San Diego, Riverside And Los Angeles Counties Some Time In 2008.
According To The Recreational Vehicle Rental Association (Rvra) Survey Report Dated June 7, 2007 It Is Predicted That The Rental Activity Will Be Up An Average Of 30% In 2007 Over 2006.
Chairman Bert Alanko Says, “Most Rental Customers Realize The Increasing Cost Of Gas Is Only A Small Percentage Of The Entire Trip, And That Rving Is Still A Great Deal. Many Of Our Rental Dealers … Point Out The Cost Of Gas Over An Average Vacation Adds Less Than 100 Or 200 To The Total Vacation Cost”.
Rv Rental Companies Are Adding More Units To Their Fleets. The Average Rental Fleet Size For 2007 Is 28 Units Compared With 26 Units In 2006 The Survey Says. This Company Currently Has 25 Vehicles In Its Rental Fleet. The Report Says That Fleet Expansion Will Be Focused On Adding Class C Units In 2007. Rental Companies Report An Average Rental Usage Of 83% Over A 12 Month Period The Report States!
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Business For Sale Photos
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