High Customer Traffic Retail Liquidator with Unique Marketing and Merchandising Approach, Key Location on Main Retail Corridor - Exceptional Opportunity for Revenue Growth and Potential Expansion

Business Summary

Business Name: Binmart Deals
Property Address: 15-17 Arctic Parkway, Ewing, NJ. 08638
NAICS/SIC 452990 /
Business Sales Price $75,000
Price / SF: $26.32
Ownership: BinMart Deals, Inc (private company)
Website: https://binmartdeals.com/
Social Media / FACEBOOK: https://www.facebook.com/search/top/?q=BinMart Deals
Social Media / INSTAGRAM: https://www.instagram.com/binmartdeals/
Assets: Business Name, Inc transfer, Inventory, Intellectual Property, Furniture, Fixture, Equipment, Marketing Rights, Signage, Leasehold Improvements and Lease Rights
Lease Liabilities: Year 1 Base Rent: $11.00 psf ($2.612.50) monthly, Year 2 Base Rent: $12.50 psf ($2,968.75 monthly, Year 3 Base Rent: $13.00 psf ($3,087.50) monthly. NNN’s estimated at $8.30 psf ($1,907.13) monthly
Lease Term: Initially 3 year term with commencement on 6/10/2022 and expiration on 6/09/2025; Two options periods of 3 Years Each (+$.50 psf Base Rent Increases annually)
Key Dates: Lease Commenced: 3/18/2022; Store Opened: 6/10/2022; Primary Lease Terminates: 3/17/2025; Option Notice by: 3/17/2024; Option 1 Terminates: 3/17/2028; Option 2 Terminates: 3/17/2031.
Current Monthly Total Rent: $4,583.75
Available sqft. 2,850
Dimensions: 15’ x 100’
Remodeled / Upfit: 2022
Operating Status: Existing open and operating Overstock / Liquidation Store and General Store
Opened for Business: 6/10/2022
Market (MSA): Trenton, NJ
SubMarket: Trenton West
Trade Area: Ewing, NJ
Center/ Neighborhood: N. Olden Avenue Central (Arctic and Olden Avenues)
Available: 12/1/2022
CONTACT: Mark Mueller
PHONE: 856-745-9706
EMAIL: [email protected]
OM Link: https://offeringmemorandum.creresources.biz/BinMartDeals

Business Use

Liquidation, Dollar Store, General Store format Retail Store. Selling off-prices, excess stock/overstock, returns, and discounted merchandise at specific price point retail pricing.

Business Highlights

* Very high customer traffic generating business with daily customer lines formed outside to get into store.

* Unique, every day a different price point selling technique encourage bargain treasure hunters and high items per transaction.

* Effective leveraging of Social Media outlets to promote daily sales and value offering

* Key marketing technique is simply a very strong Word of Mouth

* 2,850 sqft. store Is located on the busiest intersection in Ewing, NJ (N. Olden Ave and Artic Avenue)

* Owner has established significant quality contacts and sources for bulk and truckload purchasing of merchandise

* Offsite Warehouse / Storage facility is being rented for receipt of truckload stock

* Potential to expand store into adjacent, available spaces in shopping center. (currently 2 spaces totaling 2,897 sqft that are vacant and available).

Key Documents:

Current Lease.pdf

Buyer Qualifications

Potential Buyers: Please review and complete the following documents if you would like to obtain additional information on this business or make an offer to purchase this business:

Business Buyer Questionnaire

Business Purchase Letter of Intent

Non-Disclosure Agreement

Commercial Lease Application

Transaction Summary

This is the sale of an existing, 7 month old liquidation, value priced and discount retail dollar store business in Ewing, NJ along with an assignable 3 year lease with 2 options for a 2,850 sqft. retail store location at a busy, key retail intersection off of Olden Avenue, the key retail corridor in Ewing (a major suburb of Trenton, NJ). The business, know as BinMart Deals, has been very successful generating tremendous customer crowds by featuring specific price point "bin tables" that offer a different $X.99 price point each day of the week. The owner is able to purchase weekly truckloads of pallets and dump bin merchandise of closeout and overstocked merchandise from retailers like Amazon, WalMart, Target, Costco, Sam's and other big box retailers and offer discounted pricing at a fraction of the listed selling price. The impulse buying habit created by the high value deals attracts crowds of customers to the store everyday and many fill up their grocery carts to the top with a treasure trove found deals. The business benefits from constant word of mouth by its customers and strategically placed social media marketing posts on Facebook and Instagram, that create a very frequent and repeat customer base, lining up at the entrance every morning for the daily sales events. (and around the building on Fridays).

Summary of Valuation

Binmart Deals PricingWorksheet 01.19.23.pdf

BRG Guide - Dollar Stores.pdf

Sole Proprietorship Industry Financial Profile.pdf

Valuation Methodology Base Value Discount % or Multiple Valuation Notes
R-12 Revenue (6/10/2022-1/18/2023)) $327,616 Based on recorded sales from 6/10/2022 - 1/18/2023 (7 months) with average monthly sales of $46,802
Annual Revenue (Projected) $561,627 15 - 20% $84,244 Projected 12 months sales, using 15% multiple of Revenue
Inventory $25,000 60% $15,000 Valuation is at Cost (based on ~value of inventory at any point in time)
FF&E $10,000 100% $10,000 Per Asset Inventory Chart
Working Capital 0
Intellectual Property $5,000 $5,000 Included Social Media outlets (Facebook, Instagram, Website), Customer Loyalty Program
Business Value (Good Will) $5,000 $5,000
Market Conditions for Asset Class $1,000 $1,000 Strong, growing Value-priced customer base; Very analogue customer demographics within trading area.
Employees Tenure/ Quality / Availability 2 Part-time/key/cashiers holders, 5 available temporary/hourly staff (for stocking, receiving). Owner functions as store manager.
Value of Customer Base $5,000 $5,000 Includes Marketing Campaigns (Facebook, Instagram)
Lease Obligations $56,000 Total Annual Rent (Monthly Rent of $4,666.68)
Risk -$20,000 -$20,000 Business only open 6 months, unproven future forecasts
TOTALS From Above $110,250
Seller Discretionary Income (SDE , Net Earnings) $104,862
Selling Price Gross Revenue Rule of Thumb $115,985
Cash Flow Multiplier Rule of Thumb 1.79 $187,702 BBS Worksheet
Discretionary Earnings (”SDE”) + Inventory $104,862 $209,724 Owner takes home ~$5,000 per month in Salary and states ~$60,000 in SDE in 2022.
Cash Flow + Asset Value $129,862
EBITDA Valuation Model $104,862 2.5x’s $262,156
Gross Revenue Multiplier Rule of Thumb .47 $115,985 BBS Worksheet
Selling Price (High / Low / Median) $104,862 $209,862 $154,565
ESTIMATED SELLING PRICE $125,000 Recommended Listing Price
CURRENT LISTING PRICE $75,000 Requested by the Seller

Monthly Sales (6/10/2022 - 01/19/2022)

Selling Days Total Monthly Average Daily Sales
Jun-22 18 $   21,159 $                1,176
Jul-22 27 $   41,740 $                1,546
Aug-22 27 $   41,326 $                1,531
Sep-22 25 $   49,690 $                1,988
Oct-22 27 $   44,242 $                1,639
Nov-22 25 $   58,497 $                2,340
Dec-22 25 $. 45,800 $                1,832
Jan -23 14 $. 25,162 $ 1,797

Daily Sales Analysis (6/10/2022-12/24/2022)

Day of Weeks Count Sum of Weekday Average Day
Sunday 32 $    28,503 $            1,018
Monday 32 $    32,952 $            1,177
Tuesday 32 $    23,294 $                832
Wednesday 32 $    21,208 $                785
Thursday 31 $                 -
Friday 31 $ 132,732 $            4,740
Saturday 32 $    51,635 $            1,781
Grand Total 191 $ 290,324 $            1,728

Key Business Metrics

Methodology Base Value Annualized % to Revenue Industry Standards /Guidelines Discount % or Multiple Valuation Notes
Inventory (at Cost) $15,000 $15,000 Estimated on end of day Wed.
Assets: FF&E $10,000 $10,000
Annual Revenue (current year) $586,186 40-45% 50% $295,000$293 Used 50% based on quality of operation and strengths