A new business opportunity has recently been developed by one of the leading tobacco retailers in the San Fernando Valley. The owner has profitably operated tobacco related retail stores in the Valley for over 25-years. His recently opened retail store combines tobacco sales with the sale of purified water. The entire water source is totally free and then processed through a state-of-the-art brand new $35,000 stainless steel reverse osmosis machine.
He carefully analyzed the local neighborhood and determined that the demographics were ideally suited to the sale of purified water and in fact sales have been brisk. Given his totally free source of water, the profit margin on water sales is nearly 100% pure profit!
The owner used his years of industry experience to establish a formula for determining an optimum new store location; carefully considering the local demographics. The new store is positioned in a great area with a daytime population of 70,000 per square mile and a 48,000 night time population. He then invested over $100,000 in store build-outs and a high-end water purification system. The new store is very attractive, clean and very bright. The owner negotiated a very favorable long-term lease.
Current sales figures for the combination of tobacco and water are on track to generate nearly $100,000 in net earnings in the coming year. Lotto sales have just begun and that should further drive sales of both tobacco & water. The owner has just implemented a neighborhood advertising strategy, one that has proved to be very successful in the past.
The owner is relocating out of the country and originally opened the store to provide himself with income overseas. Subsequently, he has found a business opportunity close to his new overseas home and is therefore prepared to sell this new store. He is willing to work with a new owner and introduce the Buyer to his extensive wholesale industry contacts. Contacts that will provide ...