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Business For Sale:
ComWorld Pty Ltd

Mobile Phone Retail Business

Key Features:

  • ComWorld is a Telstra MobileNet Premium dealer with a Telstra Dealer code.  Telstra is offically the number 1 company in Australia for mobile phones.
  • ComWorld currently sits at No.2 in connection numbers in Dubbo - meaning ComWorld currently sits in a very good position in the market, however there is still room for improvement.  Telstra is reluctant to release any further dealer codes into a town or area so the market is very protected.
  • When mobile phones are sold under contract (75% are) then ComWorld receives commission at a rate of 7% from every phone call a customer makes for up to 2 years - or until the phone number is re-contracted.

Business background & overview

  • AXXIS Tehcnology first started selling mobile phones in July 1990 (the first mobile phone sold in Dubbo was by AXXIS) and then in March 1999 AXXIS ComWorld started trading as a competely separate entity from a separate location.
  • Over 20,000 connections have been performed since 1 March 1999.
  • ComWorld is located in a prime position in the busiest shopping mall in Dubbo's CBD - Centro Dubbo.  Foot traffic through the mall is over 52,000 people per week.  Target & Coles are located in the same mall along with 40 specialty stores.  ComWorld itself faces into the food court and the ComWorld sign is clearly visable when you walk through the front door of the shopping mall.
  • From the first day of operation it has traded without direct involvement by the owner.
  • There are currently 2,000 clients on the Telstra database contibuting to the monthly commission and over 8,000 clients in the MYOB Retail Manager database.
  • Telstra holds majority market share in Australia for mobile phone and is even stronger in regional areas where reception is better than the competitors.
  • Telstra very rarely releases additional dealer codes into an existing town or market.

Potential

  • A person with business contacts in the Dubbo community could drive significant sales through an established process using SME forms.  This process allows a business to deal with ComWorld in a more convenient way and have the potential to increase the trailing commission significantly.
  • Having operated from day one with satff and no owners has meant the business has always operated below its full potential.
  • The business currently does not trade on Sundays although Centro is open for Sunday trading.
  • The business currently focuses purely on mobile phone sales but the dealer code allows for Telstra ADSL connections and Telstra land line (PSTN) connections.
  • An effective SMS/postcard system currently exists to make it easy ro re-contract clients coming off contract but additional sales would be made if follow-up calls were made and there is no system in place for attracting new clients.

Other

  • The POS program is the commonly used MYOB Retail Manager and MYOB Premier used as the accounting package.  A customised Access database is used to track connections.
  • ComWorld is a member of a buying group adding more negotiating and purchasing power.

Click picture to enlarge
Key Person Details
Key Person Salary $0
Business Financials
Turnover $928,000
EBIT $97,660
Key Person ROI 39.06%
Business ROI 39.06%
Business Background
Industry Communication Services Communication Services Telecommunication Services
Years in Business: 19
Location NSW - Regional
Franchise No
Sale Details
Sale/Investment Terms $250,000 + stock
Selling Price $250,000
Contact Details
Broker Bridgeway Group Logo
Contact Information

Make Enquiry
Bridgeway Group, Peter Debus

Telephone: 02 6885 5788

Businesses for Sale

 

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Business for Sale

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Industry Snapshot

J - Communication Services

Telecommunications Resellers in Australia 

ANZIC: J7123
Lifecycle: Decline
Revenue: 3345.0 Million Dollars
Rev Growth: 0.7
Top 5 share: 47.00
# Businesses: 128
# Outlets: N/A
Risk Rating: Medium - High

We encourage you to make an informed decision. The above information provided is just a small sample of what is available from IBIS. We recommend the industry reports and the risk rating reports. Click here for more information.

The data in the industry snapshot is supplied by IBIS World (www.IBISWorld.com.au)



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