Consistent clientele & good accounting practices

Established La Paz marine store
shows steady growth and profits

his popular marine hardware store has served the growing marine community for over 10 years in La Paz, Baja, Mexico. It's a profitable operation with a year-around clientele and very good potential for expansion.

As a dealer of Mercury outboards, Yanmar diesel engines and 3M products, the operation also includes a storage locker rental business in very high demand from clients of Marina de La Paz which is across the street from the store.

The business can be purchased along with the building it occupies, which includes the showroom, a warehouse, the storage facilities and a roof-top commercial space currently leased to a bar. The sellers also are willing to offer a long-term lease if the real estate is not purchased with the store.

Current clientele of local fisherman, hotels and tourist fishing fleets represents about 80 percent of the business. The remaining 20 percent is made up of sailors and marine tourists, a group that is growing each year.

The store is located in one of the most popular areas of La Paz, right next door to Marina de La Paz. The 6,000 sq. ft. building sits on an 8,500 sq. ft. lot. The showroom occupies 750 sq. ft., with the offices and warehouse taking up an additional 2,500 sq. ft. The balance of space includes 36 rented storage lockers, an additional smaller warehouse and a space that could be finished out into an apartment. The bar leases the rooftop space over the showroom and warehouse.

The seller, a former marine biologist for the United Nations, has developed and maintains one of the cleanest computerized inventory and accounting systems in the area. He feels the business can be expanded significantly by increasing promotion of outboard sales and by expanding the number of product lines represented.

The business consistently has generated a profit ranging from 12 percent in 1998 to 21 percent before taxes in 2001:

	1998	1999	2000	2001
Income	425,000	550,000	600,000	665,000
Expenses	370,000	475,000	490,000	525,000
Net Pre-tax Profit	55,000	75,000	110,000	140,000
Percent of Income	12.9%	13.6%	18.3%	21%

In addition to merchandise sales, income includes approximately $1,200 USD per month from storage locker rentals and $500 per month from the rooftop bar lease.

The combined package of the marine store and its real estate can be purchased for $600,000 USD plus inventory, which was approximatelyl $250,000 in October 2002. The business alone is available at $350,000 plus the fully imported inventory of $250,000 USD (October 2002).

This is a great stand-alone business.

To see additional photos of the store and building, Click Here!

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