Retail Truck and SUV Accessories Center – Lewistown, MT -- established 2001
Company sells and installs Truck and SUV Accessories such as grille guards, running boards and steps, towing products, bed covers/caps/liners, tool boxes, performance and appearance accessories, vinyl graphics including commercial design.
4,320 sf facility built in 2001 includes showroom, back office, customer and employee rest rooms, and three-bay shop set up for installations (with hoist), detailing (with high pressure/temp washer), and sprayed-in bedliners.
Operation was designed as a prototype store, ready to be replicated in similar markets (small, rural cities). Significant marketing program is in place, including strong multi-media advertising, website, and attractive store signage and presentation. Excellent financial and operational information system. Company has a strong quality and service reputation, many repeat customers, and excellent vendor access and relationships.
Company has enjoyed consistent and rapid growth. Direct competition is negligible. Significant growth opportunities exist via addition of new stores, broader product and service offerings, continued market penetration including auto dealers, govt. entities and fleets.
Owner cash flow is at $90k ytd Oct, and I expect about $120k for the entire fiscal year. Sales are up 40% over last year and no end to growth in sight
Asking $399,000 inc asset list
Building available at $350,000
Equipment & Asset List:
All assets and furniture associated with the running and maintenance the shop
| the Pickup Guy - Assets as of 12/31/04 | |
| Item | Market Value 12/31/04 |
| AOpen Computer w/printer | $ 600 |
| Tool cabinet and hose reels | $ 300 |
| Vinyl cutter and orig. software | $ 1,500 |
| Scorpion license and orig. equip. | $ 1,500 |
| Pole sign / wall sign incl design/install | $ 10,000 |
| Store fixtures | $ 1,000 |
| 1999 Toyota pickup, customized | $ 12,000 |
| Extractor | $ 150 |
| Pressure Washer | $ 1,500 |
| 2001 Dodge Durango | $ 16,000 |
| Vinyl cutter software upgrade | $ 710 |
| High speed wireless internet equipment | $ 425 |
| Dell Computer | $ 500 |
| Website | $ 5,000 |
| Fixed Assets (the Pickup Guy balance sheet) | $ 51,185 |
| Hoist | $ 3,000 |
| Compressor | $ 1,000 |
| Spray booth exhaust system | $ 2,000 |
| Vinyl cutting table with glass top | $ 500 |
| 2 hoist jacks and extensions | $ 280 |
| Landscaping | $ 500 |
| parking lot paving | $ 10,000 |
| Fixed Assets (included with building) | $ 17,280 |
| IBM back office computer system / networking | $ 500 |
| back office furniture / fridge / microwave | $ 300 |
| office/store supplies | $ 500 |
| shop supplies | $ 500 |
| air and power tools | $ 1,500 |
| washer and dryer | $ 400 |
| storage racks and tables | $ 700 |
| displays, p.o.s. and demos | $ 3,000 |
| hand tools | $ 1,500 |
| miscellaneous assets and supplies | $ 2,000 |
| Assets purchased by owner or expensed by company | $ 10,900 |
| Furniture, Fixtures, and Equipment at market value | $ 79,365 |
| Inventory as of 12/31/04 | $ 38,752 |
| Subtotal | $ 118,117 |
Owner is semi-retiring and will pursue other business interests, but will remain in area and is available for training and support.
Photos & Advertisements:
More to come !
Check out the web site www.thepickupguy.com
Business Analysis
02/02/2005
The Pickup Guy is a retail pickup accessories store in Lewistown, Montana. The company sells and installs aftermarket accessories for pickups and SUVs, and performs shop services such as sprayed-in bedliners, window tinting, automotive detailing, and design and installation of computer-cut vinyl graphics. Featured products include grille guards, steps and running boards, graphic kits, hitches, tool boxes, styling accessories, seat covers, custom wheels, auxiliary lighting, bed liners, rails, covers, and caps, and many more interior and exterior accessories by the top manufacturers in the industry.
While many of our products are ‘fun' or ‘luxury' items, we view most of what we sell as “necessities” for trucks in rural areas. Good mud flaps, bed protection, grille guards, floor mats, and many other items are required to keep a truck looking good and working hard in a harsh environment. Customers who spend $30 - $40 thousand for a new pickup are inclined to invest another thousand or two in maintenance and protection, and to personalize their vehicles.
My wife, Linda, and I opened the Pickup Guy in April of 2001. We are Montana natives, but had lived out of state for over 20 years. After a rigorous career as CFO and COO for medium and large corporations in the Midwest, I had decided it was time to move back to the mountains and fresh air. Pondering the market and possible business opportunities, I realized that virtually everyone in Central Montana owned one or more pickup trucks or SUVs. I began researching the truck accessories industry and created the business concept for the Pickup Guy. The Lewistown store was set up as a prototype for a chain of stores and is ready to be replicated. We started this business venture with the intention to sell the prototype store and/or other stores within two to five years. The business is fully capitalized without debt.
We chose to build in an excellent new retail area at 210 Wunderlin St. in the “uptown” business district of Lewistown. The Pickup Guy is one block away (and visible) from the city's main thoroughfare on a new paved street. Adjacent is a new “Super Lube” oil change store, and across the street are a new Super 8 Motel and a new Basin State Bank. Other neighboring businesses include a Pizza Hut, a bowling alley, a new restaurant / nightclub, and several government and office buildings. The hospital is two blocks away.
The building was designed to be optimal for our truck accessory business, but generic enough so that it could be used for any number of purposes, including wholesale distribution, automotive service, ambulance or dispatched vehicles, or retail operations. The 60 x 72 foot building is divided roughly in half; one side features a showroom, office, and public rest room, and the other side is a three-bay shop. Bay number one is walled off and ventilated for spray operations, with drainage and water supply. Bay number two also has drainage and water supply for automotive washing and detailing. The third bay is set up for accessories installation, with a 9000-pound hoist and a large storage area with racks for back stock. The shop side also includes an employee rest room / changing room with washer and dryer, and an enclosed utility room with heavy-duty compressor and some storage. Radiant heaters in the shop provide economical winter comfort and the showroom is air-conditioned. The three overhead shop doors are 10 feet tall and are electrically operated. The showroom features bright colors and décor.
An important part of the business concept is the logo, color scheme, tag line, and graphic theme of the Pickup Guy. Application has been made for trademark. Cast in bright, patriotic colors (stock red, white, and blue) the logo lends itself easily to print media, electronic media, or cut vinyl graphics. The simple blue pickup outline is a visual reinforcement of the company identity, and the tag line “cool stuff for your truck” drives home what the business is all about. The logo is used extensively around the store, in advertising and forms, on signage, on apparel, in merchandising and p.o.s., and on company vehicles. Even the “open” sign is a neon blue pickup. Our large neon signs attract customers and promote our product lines prominently. They are visible from a considerable distance and the neon is irresistible to the eye.
Radio advertising features specific products or themes, often includes humor, and makes consistent use of the tag line and other “hooks”. Radio ads are produced on computer in-house and e-mailed to the radio stations. Print ads follow the same regimen, with featured products, humor, and consistent hooks. They are also produced in-house and e-mailed to publishers.
Direct mail advertising is occasionally used, particularly to commercial customers and dealers.
The company website, www.thepickupguy.com , is an excellent source of advertising, and brings in business from all over the country. It also serves local customers with information about products, services, specials, some local flavor, and easy e-mail access.
The Pickup Guy is active in local events and charities, sponsoring drag racers, AMX drivers, and car shows, and participating in fundraiser's and school events.
Our market area includes all of Montana; over 50% of revenue is derived from customers outside of Lewistown. Advertising in statewide agricultural trade papers has brought a growing number of customers from Northern and Eastern Montana where similar products and services are not available. Competitive pricing has brought customers from cities all over the state. And our presence at the top of many search engines on the web results in calls from all over the country.
COMPETITION and MARKET ADVANTAGES
The primary reason we chose this business was the lack of difficult competition. Some of the products and services we sell are locally available in parts stores, but at higher prices and often involving shipping costs and delays and lack of installation and service. Our nearest direct competition is located 150 miles away in Great Falls and Billings, the two largest cities in Montana. Each city has two accessories stores, which offer some of the same products and services we do, but at higher prices and with a much narrower selection. We have no problem competing with national catalog and Internet sales companies such as JC Whitney and Cabella's – our prices are lower than theirs after shipping is considered, and we provide installation (usually free) and service. We feel this unique business can be replicated successfully in underserved small cities in rural and agricultural areas all over the Western U.S., and have identified some great target markets.
Our computer system allows us to look up retail and cost of virtually every part and accessory in the market – over 400,000 sku's – and we can obtain any item (usually freight free) within 1 to 7 days. Our real-time accounting system keeps up-to-the-minute inventory control and complete financial information with minimal care and feeding. None of our competitors has this capability. We use the Internet and e-mail religiously in communicating with our vendors and customers.
OPPORTUNITIES
REPLICATION OF STORES - This business was designed to be replicated, and that, of course, is the greatest opportunity for substantial growth in revenues and profits. Franchising is a possibility, as is acquisition by a larger company in a related industry – perhaps a wholesaler seeking to vertically integrate, or a retailer who wishes to expand geographically.
VINYL GRAPHICS - we find that an excellent complementary service, or additional product offering, is computer-cut vinyl graphics. While we have not heavily promoted this service at our store, we find that as word gets out, our vinyl graphics business is really taking off. We design, cut, and install logos, lettering, and artwork on bug shields, hitch plugs, windows, and vehicles – both personal and commercial. In addition, the production of signs, banners, and other graphics applications is natural and easy revenue, and we are developing relationships with printers and other related businesses.
WHOLESALE DISTRIBUTION – since our store services a very broad geographic commercial area, there is an opportunity to serve related small businesses in remote areas. The wholesale distributors in this state are not aggressive at all, and two weeks between deliveries (from modestly stocked warehouses) is the best many small retailers can expect. Our purchasing relationships with local and national distributors, as well as manufacturers, enable us to handle B2B as well as B2C sales. Early on, our local auto dealers resisted our entry to the market, but have since learned that we can provide excellent and lucrative service to them and their customers. This is an excellent B2B growth opportunity.
INTERNET SALES – we get good traffic and frequent inquiries from our website. Currently the website is not set up for e-commerce, so transactions take place via e-mail and phone. The installation of a web “store” would be easy to do and should result in significant revenues since we keep our site at the top of search engines and our pricing is very competitive. Shipping is easy with computerized service from UPS and Fedex.
BROADER PRODUCT AND SERVICE OFFERINGS – our business is well-suited and equipped for a number of related services, such as glass replacement and chip repair, dent and ding repair, upholstery, off-premise detailing, suspension and performance upgrades, stereo sales and installation, remote starters and other electronics, diesel and gas computer chips, and many more.
CONTINUED MARKET PENETRATION – we consider our market penetration to be moderate at this juncture. In spite of our advertising and word-of-mouth recommendations, we still hear occasionally from new customers that they “didn't know you were here.” This tells us that our business is still fresh and new in the market and we can expect routine local transaction volume to continue to grow, as we become better known. We enjoy a very favorable price and service reputation, and word-of-mouth promotion from our customers, plus repeat business, guarantees continued growth. We have begun advertising on Great Falls radio, which reaches the rural area west and north of us; we expect a significant impact from that.
IMPROVED ECONOMY – our business startup occurred during the worst economic period in decades. Our agricultural economy suffers doubly as we are in the fifth year of serious drought. The early success of our business indicates that as economic conditions and the agricultural sector improve, we can expect significant increases in revenues and profits.
Tom Balek the Pickup GuyABOUT LEWISTOWN
Lewistown, a picturesque small city of 7,500, is located on the east slopes of the Rockies in Central Montana. A fisherman's and hunter's paradise, it is nestled between three mountain ranges on Big Spring Creek, a world-renowned blue-ribbon trout stream. Big Springs is the second largest natural fresh water spring in the world and provides Lewistown with a sparkling pure water supply that does not even need filtration or treatment.
The Central Montana economy is based on agriculture, and it is home to numerous purebred cattle ranches and grain operations. Lewistown's considerable distance from other cities makes it a commercial center serving a very large geographical area. Lewistown is the seat of Fergus County, the home of the Fergus County Fair and the Montana Winter Fair, and host of numerous events and activities throughout the year. Racing enthusiasts enjoy drag racing and AMX racing as well as an annual classic, custom, and antique car show. Two golf courses provide more than ample opportunities for play, and the city is home to a wide selection of restaurants, shops, and entertainment venues. Cost of living is moderate, climate is seasonably moderate, and the attitude is western hospitality. It's a great place to raise a family and operate a thriving business.