Fully describe the business's activities?
The business specializes in providing a wide variety of quality trailers for hire in Mbombela, the capital of Mpumalanga. With reliable service and a diverse fleet, they cater to both individual and business needs, ensuring hassle-free transport solutions.
How long has the business been established?
21 years
How long has the owner had the business?
21 years
How does the business operate on a daily basis?
Their daily operations typically include:
- Trailer Rentals â Customers can rent a variety of trailers for personal or business use.
- Maintenance â They provide maintenance services to ensure quality and reliability on their trailers
- Adhoc sales of basic spare parts - eg jockey wheels / bearings / plugs / globes , lights.
- Customer Support â Assisting clients with bookings, inquiries, and trailer recommendations.
How are the clients attracted to the business?
Clients are attracted to through several key strategies:
- Local Reputation & Word-of-Mouth â Being a well-established business in Mbombela, they benefit from strong community trust and referrals.
- Online Presence â They are listed on platforms like Think Local and Infobel, making it easy for potential customers to find them.
- Convenient Location â Situated in a high-traffic area, they attract walk-in customers looking for trailer rentals.
- Reliable Service & Quality Trailers â Customers return due to the businessâs reputation for well-maintained trailers and excellent service.
- Competitive Pricing â Affordable rental rates make them a preferred choice for individuals and businesses needing transport solutions.
Does the business have any contract work?
The business have a large % repeated clients , mostly from manufacturers in the city
What competition exists?
There is similar rental businesses in town - it is not easy to differentiate
Service , reputation and price is key
What are the seasonal trends?
The turnover is fairly constant , but months ends are more busy
What are their business hours ?
They are open Monday to Friday from 7:30 AM to 5 PM, Saturday from 7:30 AM to 4 PM
Is the business VAT Registered?
No
Are there up-to-date Management Accounts available?
The seller provided Aldes with comprehensive month to months sales and cost figures
Even daily rentals details are available
What percentage of the business is cash/credit?
The rentals are settled in cash / cards / EFT
How could the profitability of the business be improved?
1. Expanding Service Offerings
- Introduce long-term rental packages for businesses needing trailers regularly.
- Offer maintenance and repair services for privately owned trailers.
- Provide custom trailer modifications to meet specific customer needs.
2. Enhancing Marketing & Visibility
- Strengthen online presence through a dedicated website and social media marketing.
- Partner with local businesses that frequently require trailer rentals.
- Implement targeted advertising in Mpumalanga to attract more customers.
3. Optimizing Pricing & Revenue Streams
- Introduce tiered pricing based on rental duration to encourage longer bookings.
- Offer membership or loyalty programs for repeat customers.
- Explore seasonal promotions to boost demand during peak periods.
4. Improving Operational Efficiency
- Streamline booking and payment systems for a smoother customer experience.
- Optimize fleet management to reduce maintenance costs and downtime.
- Invest in fuel-efficient and durable trailers to minimize long-term expenses.
Is Seller finance available and for what amount?
Unfortunately not
What is the total staff complement?
2 assistants are working on the premises
Give a breakdown of staff/ functions/ length of service?
Manager - 21 years
Maintenance - 5 months
How involved is the Owner in running the business?
The owner is not actively involved in running the business. He randomly visits the business three times a week
Is there an option of renewal & what period?
The landlord has agreed to the session of the lease , and continued 5 year extensions
What is the annual escalation %?
8%
What is the square meters of the business?
216 m2
Is a copy of the lease available?
Yes
Do you require a licence?
The trailers are registered and licensed in a CC
The CC is not used for any other purpose
What are the main assets of the business?
24 different types of trailers
What is their overall condition?
Fair
Do any require repairing?
No , but ongoing maintenance is required
How have they been valued ?
The trailers have been valued very conservatively by the seller
Are they presently insured?
No - to be discussed
Strengths?
- Prime Location â Easily accessible in Mbombela, attracting local customers.
- Diverse Fleet â Wide variety of trailers catering to different transport needs.
- Established Reputation â Strong word-of-mouth referrals and returning customers.
- Competitive Pricing â Affordable rental rates compared to competitors.
- Reliable Service â Well-maintained trailers ensuring customer satisfaction.
- Flexible Rental Options â Short-term and long-term rental packages available.
- Personalized Customer Service â Responsive support and tailored recommendations.
- Repeated customers
Weaknesses?
- Limited Online Presence â Could benefit from a stronger digital marketing strategy.
- Fleet Size â May need to expand the variety and number of trailers to meet growing demand.
- Customer Awareness â Some potential clients may not be aware of the full range of services offered.
- Accessibility - during peak hour traffic the street in front of the business is getting congested , making collection and return of trailers a challenge
Opportunities?
- Expand Fleet â Introduce more trailer types to meet diverse customer needs.
- Improve Online Presence â Develop a website and enhance digital marketing.
- Partnerships â Collaborate with local businesses for bulk rentals.
- Long-Term Rentals â Offer subscription-based rental packages for businesses.
- Additional Services â Provide trailer maintenance and customization options.
Threats?
- Increasing Competition â More trailer rental businesses entering the market.
- Economic Fluctuations â Changes in fuel prices and consumer spending affecting demand.
- Maintenance Costs â Rising expenses for trailer upkeep and repairs and replacements
What is the reason for the sale?
The seller was offered an opportunity in Australia
Why is this a good business?
This a fairly simple business with a solid asset base
- High Demand
- Prime Location
- Diverse Fleet
- Established Reputation and repeated clients
- Scalability
- Competitive Pricing
- Reliable Service
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