Initially opened in 1956 and relocated to its current location in 1976, this community grown plumbing, heating, HVAC, and appliance sales and service center has flourished as a leader in rural South Central Minnesota. This business has set themselves apart from others that have come and go from the community by priding themselves in their high level of customer service and their loyal orientation to the community. As being one of the more consistent operations of its type in the area, customer retention levels have stayed over 90% between both residential and commercial clients. Being positioned in an agriculturally based community, the business has a split of revenues of 75% residential and 25% commercial, which mostly consists of local farming operations. With the businesses long-time commitment to the community, most service is provided to clients within a 25-mile radius comprised of roughly 1,800 annual clients. Most business is secured through word of mouth, leaving opportunity for a new owner to expand their reach through additional marketing efforts. The business is structured as a C-Corp operating six days a week. This turnkey business currently is run by three full-time employees, a shop clerk, journeyman plumber, and apprentice plumber, as only the apprentice will be expected to stay on through the transition.
The business produces revenue through its four primary specialties: HVAC, plumbing, heating, and appliance sales. Each specialty has about a 25% stake of the total revenue, keeping the business well-diversified and gives it the ability to lengthen relationships with clients after initial sales and installs. Currently, the business is a certified Maytag and Amana retailer and servicer, allowing them to offer top customer demanded products and dealer incentives that can be transferred to a new owner if educational requirements are met. With the high level of specialization of the business, a new owner should be at minimum a journeyman plumber or have the ability to hire one, to be able to continue to provide the level of service that the community expects. Additionally, the business has enough resources currently to support the efforts of another journeyman or master plumber, with a current unused outfitted van included in the sale. With the current capabilities of the business, the owner does not implement automatic service plans with the clients, which presents a potential new revenue stream for a new owner.
The business currently operates in a owner owned space approximately 9,200 sq ft of combined showroom, heated warehouse, and workshop. The workshop space includes a garage with large enough space to store business vehicles as well as a basement for raw material storage. The building is well represented in its downtown location of its rural community having a corner lot with ample parking. The owner is interested in transferring the property along with the business via outright purchase, lease-to-purchase, or lease dependent on the needs of the new owner. Assets of the business include 3 shelved outfitted vans, a large stock of used and new HVAC and appliance inventory and all associated repair equipment.
The sale would include all assets, negotiated real estate, inventory, and clients list.
Please contact South Central Minnesota SBDC Regional Director Mike Hahn – Mike.Hahn@mnsu.edu or (507) 389-8875 for more information on this business.