Ref. No - BFS937805

LocationSouth Africa, Gauteng

Ref. No - BFS937805

Sector - Services

Asking Price
R9,500,000
for 50% of business
Monthly Profit
R194,835
being 50% of R 389,670
Asset Value
R 3,800,000
Stock Value
R 1,800,000
Yearly Net Profit
R 2,338,023
being 50% of R 4,676,045

Summary

**Price Includes the Property and Working Capital** This long-standing motor spares and number plates business offers immediate stability and long-term potential. With decades of reputation and no real competition, the new owner walks into a dependable income, strong cashflow and a solid customer base. The foundation is set—simply take over, earn from day one, and expand as you wish. Perfect for a hands-on buyer ready to elevate an already thriving business.

Give me more information

Fully describe the business's activities?

***Price Includes the Property and Working Capital***

This well-established motor spares business has been operating successfully for 37 years, earning a strong reputation as reliable and honourable account payers with all major suppliers. The revenue model reflects a healthy 50/50 split between cash and account customers, ensuring consistent cash flow and long-term client loyalty.

The operation comprises retail motor vehicle spares and parts, supported by a fully functional fitment centre and repair workshop, enabling the business to service both walk-in and account clients efficiently. Strategically located in the heart of Germiston’s main industrial hub, the business benefits from high visibility and close proximity to one of the densest concentrations of manufacturing companies in the region.

Although there are several businesses in the area, few compete directly; the surrounding suppliers primarily focus on truck parts, hardware, and specialised components. This limited direct competition—combined with decades of dependable service—has secured a loyal customer base, with many local businesses continuing to support this operation due to its long-standing reputation, consistent service levels, and proven track record.

The Business also Manufactures Number Plates and is located near to the Licensing Department.

How does the business operate on a daily basis?

The business operates 7 days a week, ensuring constant availability and support for both retail and account customers. Its operations are structured to maintain efficiency, uphold service standards, and accommodate the needs of walk-in clients, local workshops, and longstanding corporate accounts.

Weekday Operations (Monday – Friday | 7:00am – 4:00pm)

Opening Procedures:
- Staff prepare by ensuring stock is correctly displayed, confirm pricing, and review any urgent account orders from the previous day.

Parts Sales & Customer Service:
- Counter sales staff assist walk-in customers with motor spares enquiries, while dedicated team members handle telephonic and WhatsApp orders, quotations, and parts lookups.

Account Management:
- Regular account clients place orders for delivery or collection. Staff process invoices, confirm stock availability, and maintain communication with business clients.

Workshop & Fitment Centre:
- Technicians perform fitments, minor repairs, and part installations. The workshop team manages job cards, source required parts internally, and ensure quick turnaround times.

Stock Control & Ordering:
- Ongoing stock monitoring takes place throughout the day. Staff check fast-moving lines and process supplier orders to maintain healthy inventory levels.

Supplier Deliveries:
- Incoming stock is checked, captured on the system, priced, and packed onto shelves.

End-of-Day Procedures:
- Cash-up, reconciliation of account charges, securing stock areas, and preparing any next-day account orders.

Saturday Operations (8:00am – 1:00pm)

- Saturdays focus on high-volume walk-in trade, especially DIY customers and local workshops.
- Workshop fitments continue, but generally with reduced capacity.
- Staff fulfil urgent weekend orders, process quick repairs, and handle parts sales.
- Stock checks for high-demand weekend items (e.g., brake pads, filters, service kits) are prioritised.

Sunday Operations (8:00am – 12:00pm)

- Sundays cater mainly to emergency and last-minute part purchases, ensuring the business remains a reliable weekend solution.
- A smaller team manages counter sales, basic fitments, and collections.
- Minimal administrative work is done on Sundays to focus on customer-facing service.

General Operational Strengths

- Continuous 7-day trading enhances customer convenience and increases revenue opportunities.
- Balanced staffing throughout the week ensures efficient management of sales, workshop jobs, and account fulfilment.
- Internal processes—from stock intake to invoicing and workshop operations—are designed for a fast-paced industrial environment with consistent demand.

What Advertising/Marketing is carried out?

1. Long-Standing Reputation (Primary Marketing Driver)

The business’s strongest marketing tool is its 37-year reputation within the Germiston industrial area. Most new customers are attracted through word-of-mouth and referrals from long-time loyal clients. This organic visibility significantly reduces the need for heavy advertising spend.

2. Signage & On-Site Visibility

The business benefits from prominent signage in a high-traffic industrial zone. The location’s visibility naturally attracts walk-in customers, mechanics, drivers, and surrounding workshops who require quick and accessible motor spares.

3. Weekend Trading Advantage

Being open 7 days a week serves as indirect marketing. Many clients choose the business simply because it remains operational when others are closed, especially on Sundays. This creates consistent repeat business and builds brand reliability.

4. Networking Within the Industrial Community

Over the years, the business has developed strong relationships with nearby workshops, factories, and fleet operators. These informal networks act as ongoing marketing channels through continuous referrals and recommendations.

5. Loyalty From Account Clients

The 50/50 split between cash and account customers is supported through excellent account service, quick turnaround times, and reliable invoicing. Account clients often refer other industrial businesses, functioning as an ongoing form of B2B marketing.

6. Customer Service as Marketing

Fast response times, dependable parts availability, and helpful staff form a key part of the business’s marketing strategy. Exceptional service keeps customers returning and encourages them to recommend the shop to others in the area.

7. Minimal Digital Marketing (Opportunity for Future Growth)

Historically, the business has relied more on reputation and location than digital advertising. This offers a major opportunity for a future owner to introduce:

- Google Maps optimisation
- Facebook/Instagram adverts
- WhatsApp business broadcasts
- Online cataloguing of parts
- Local SEO for “motor spares Germiston” searches

These improvements could significantly increase visibility with minimal investment.

How could the profitability of the business be improved?

Opening

Give a breakdown of staff/ functions/ length of service?

The majority of the staff have been with them for over 20 years and have been trained to do more than just one job. The staff comprise of Sales, Cleaners, Packers, Administrative Staff and Drivers.

Do any have management potential?

The sales staff do have management potential.

How involved is the Owner in running the business?

The owners are involved in all that happens in the business to make sure all is done correct and runs smoothly. The owners do typically exchange days on site.

When does the current lease end?

The property is owned by the businnes

What are the trading hours?

7 days a week:

7am to 4pm during the week

Saturdays
8am to 1pm

Sundays
8am to 12pm

The Value of the Property?

R3,800,000.00

What are the main assets of the business?

Shelving, Vehicles, Computers, Property, Stock

Strengths?

- 37 Years in Operation: The business has been trading in the Germiston industrial area for nearly four decades, giving it unmatched brand recognition and trust within the community.
- Established as the Main Supplier: It is regarded as the primary and most reliable motor spares provider in the area, with no direct competition offering the same range of car spares and fitment services under one roof.
- Loyal Customer Base: Long-standing relationships with local workshops, factories, and account clients ensure consistent repeat business.
- Balanced Revenue Stream: A healthy 50/50 split between cash and account clients provides stable cash flow and predictable monthly income.
- Prime Industrial Location: Situated in the heart of Germiston’s manufacturing hub, attracting strong walk-in traffic and emergency weekend sales.
- 7-Day Operation: Being open every day gives the business a clear advantage over competitors who close on weekends, increasing convenience for customers.
- Strong Supplier Relationships: Long history of honourable account management results in reliable stock access and favourable pricing.

Weaknesses?

- Owner-Dependent Management: The current owner plays a hands-on role, and their retirement may require a transition period for new leadership.
- Limited Modern Marketing: The business relies heavily on reputation and word-of-mouth, with minimal presence on digital platforms such as Google, social media, or online catalogues.
- Aging Operational Processes: Administrative and stock management systems may require updating to modern software or digital solutions.
- Facilities May Need Refresher: Signage, layout, or workshop equipment could benefit from upgrades to appeal to newer generations of customers.

Opportunities?

- Ideal for a Younger Owner With Fresh Ideas: A motivated new owner can modernise operations, streamline systems, introduce digital marketing, and drive further growth.
- Digital Expansion: Creating an online presence, running targeted ads, using WhatsApp Business, or listing on online marketplaces can attract new customers at low cost.
- Extended Product Lines: Opportunity to expand into accessories, performance parts, or branded consumables to increase basket size.
- Fleet and Contract Growth: Strong potential to secure additional fleet accounts and B2B relationships with nearby industrial companies.
- Workshop Optimisation: Increasing capacity, offering additional fitment services, or adding diagnostics could grow revenue.
- E-commerce Opportunity: Online spares sales, delivery options, and click-and-collect could open a wider customer base beyond Germiston.

Threats?

- Entry of New Competitors: Although there is currently little direct competition, new entrants offering aggressive pricing or strong digital marketing could disrupt local market share.
- Economic Fluctuations: Economic downturns, rising import costs, or supply chain delays may affect cost prices and customer spending.
- Technological Shift in Vehicles: As vehicles become more technologically advanced, demand may shift toward specialised electronic components requiring updated expertise.
- Reliance on Industrial Foot Traffic: Any major changes in the surrounding industrial area, such as factory closures or relocations, could impact walk-in demand.
- Owner Transition Risk: If not managed carefully, the change of ownership could briefly affect relationships with long-term clients or suppliers.

What is the reason for the sale?

A combination of Age and Health.
Location

Contact | Enquire

Nathan

Nathan Grose

LocationSouth Africa, Gauteng

Preferred method of contact

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