Description

This ecommerce site specializes in buying quality used motorcycles at very competitive prices, breaking them into parts, efficiently cleaning, photographing and preparing the parts, listing the parts online and speedily shipping all orders. They focus mainly on motocross dirtbikes, while offering some ATV and street bike parts. Their customers are all over the world and range from parents to enthusiasts to semi-professional racers. Their online store has an excellent average rating and solid traffic.

They have developed their own software and operating systems that allow for fast production and marketing of used parts. The system is highly automated and assists with all aspects of the business, from buying used bikes, to photo management, listing generation and order fulfillment. With this system, they have been able to quickly become one of the largest dismantlers, as they can efficiently handle large production volumes. Many of their competitors have 3 or 4 extra staff members to deal with their volume of listings and sales.

Overall, the company has a solid base of inventory and has a great reputation. Since the first day, they have really been focused on growing the business inventory and sales. The result has been a significant increase in their online offering every year. Recently, they made adjustments to part pricing and production rate, which allowed them to increase margins and cash flow. They did this to demonstrate that the business can easily be operated to optimize profits or optimize growth rate or any mixture of the two that may suit the new owner’s goals.

Moving forward, the business needs additional work on training the production crew to improve efficiency. The owners also are just starting to look at adding additional revenue streams by selling select new items. They were recently approved to be distributors for a large catalog and they are working on becoming a distributor for a major ATV company. New items from these companies can be added to the store to provide additional sales opportunities and revenue. These items can be commonly-needed rebuild items (gasket kits, etc) as well as common aftermarket items. They have historically focused on motocross bikes and ATVs because this is what they know. However, expansion can be made into other areas such as side-by-sides, snowmobiles, watercraft and street bikes. The computer system can be configured to handle these items as well.

Some seller financing is negotiable for a qualified buyer. Buyer can purchase over $600K of retail-value inventory at seller’s cost.

Posted May 3, 2016

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