Highly Profitable Hot Tub/Spa Sales & Service Business near Winter Park Mountain Ski Resort!
About the Business: This very profitable spa sales and service business is located amongst the Winter Park Ski Resort and amenities. Established in 2005, this business is much more than a hot tub sales business, it is the area’s only full-service business that includes a retail storefront specializing in providing the industry’s best spas, saunas, accessories, chemicals, parts, repair, and water care maintenance service plans serving the much-needed niche for absentee owners of spas in Grand County.
The Sellers possess a growth-oriented mindset and the business has grown every year they have owned it. The business attitude they embrace is characterized by their true desire to improve people’s lives by promoting world class products that provide health, relaxation, lifestyle and family benefits. The Sellers proudly provide sales, service, and care of the best product in the industry in one of the best locations in the world
If you aren’t aware of the big news around Grand County, Aspen Skiing Company has recently purchased interest in Intrawest Resort Holdings, which is the operator at Winter Park Ski Resort. In addition the high growth in home construction could mean significant growth and this particular business, and they are well-positioned to participate in that changing environment.
No prior industry experience is needed. Prior to owning this business, the owners had no experience in the spa industry. An ideal candidate to purchase this business would be somebody that has a strong business management and enjoys people, likes sales, and of course somebody that is looking for a lifestyle of operating a lucrative business while enjoying true mountain living in the resort area of Grand County. Additionally, a new business owner can take the current existing model and mold it around their own lifestyle circumstances. The Business has a total of 7-8 employees including the owners.
Inventory & FFE: Included in the sale of the business will be an inventory of 6 hot tubs valued at approximately $25,000, and Furniture/Fixtures/Equipment that has a used-replacement value of approximately $50,000.
Hours of Operation: Current store hours are Monday through Friday, 9:30am to 5:00pm, and 9:30am to 4:00pm on Saturday.
Growth and Expansion for the Business: In general, Grand County is a fast growing county convenient to the Denver metropolitan area. That combined with the recent purchase of Intrawest Holdings by Aspen Skiing Company, will continue to drive steady growth opportunities.
In addition, the Seller feels that hiring a commissioned spa salesperson or a new owner that enjoys sales, would enable the Business to expand the local commercial base of customers, and spend more time growing the business by networking with builders and realtors and other potential referral sources in the community. Also, the business advertises that they sell saunas but the Sellers have not focused on this area of the business in a significant way. This would be a growth market with new home builds, particularly since the Sauna industry continues to build awareness and momentum.
Current business comes from Local Customers (commercial and residential), Colorado Front Range residents that own property in Grand County, and out-of-state property owners. The Seller is happy to share ideas for growth in each of these types of customers with a prospective Buyer.
In addition to growing the established business, a new owner could also expand with several complimentary adjacent business opportunities such as a Home Check Business (to current water care customers), a service of building decks and concrete pads, or any home entertainment/lifestyle products and services business (i.e. gas fireplaces or gas grills, for example).
Additional, the Business recently relocated to better-suited location with more visibility which has been well-received by the existing customer base. The Business is already seeing more qualified walk-in business and increased sales that they attribute to that store relocation. A new owner can reap the benefits of this new location and the build out.
Competition: This business is truly a unique player in the market space in Grand County. They are the only Hot Spring dealer in Grand County and the territory also includes Silverthorne and Clear Creek County. There is another Hot Spring Dealer in the Denver Metro Area that will sometimes capture sales to residents of the Denver area that purchase second homes in Grand County, which can be a competing factor. Most often, those customers prefer to purchase locally and are grateful they did so if a problem arises and they need service it in a timely manner. With prices very competitive with the Denver market and quality local support and service department, it is no surprise this Business is the go to place for all of the county’s spa and hot tub needs.
There is one other spa sales company in Grand County which is about 15 miles away. They do not enjoy the same level of brand recognition nor offer a comparable quality product. There are also a couple of one-person service techs that provide hot tub service but do not have a storefront, nor do they sell spas. This business is able to boast providing the best product in the most premier location.
Premises and Lease: Standalone building moved into in March 2017. There is a showroom, office, sales desk area, a separate room to store parts, a garage, an office upstairs and room for storage of some spas outdoors. Rent is currently $2,650 per month. In addition to the Business premises area, there are also two other rooms with a separate entryway, a bathroom, and rough-in plumbing for a kitchenette, that the landlord will either rent, or optionally, the business buyer could lease for additional cost if they wanted living quarters, employee housing, had another business or other external uses for the space.
Opportunity to Purchase the Real Estate: The real estate is available for sale for $570,000. The space is suited so that a new business owner could live in the space on a short-term basis, and also operate the business.
Training and Transition: The Sellers are offering 3 weeks of complete training (30 hours per week) to be included in the sale of the business. They have expressed a sincere passing of goodwill and the necessary assistance for a new owner to be successful in the business. There are a significant number of processes and procedures that have been developed over the years that should result in a smooth transition for the buyer. The Seller is open to an ongoing agreed upon consulting arrangement if additional assistance is needed by the new owner after the training period is complete. The Seller may also be willing to discuss a part-time or seasonal sales position in the future.
Financing: Both the Business and the Real Estate have been pre-approved by an SBA Lender to a qualified Buyer with 25% Down Payment. The buyer may purchase the Business or the Business and the Real Estate together. An advantage to purchasing the both the Business and the Real Estate is that length of the loan will be possibly 17 or 18 years (more purchasing power and lower monthly payments) as opposed to the standard 10 year term loan terms that occur when purchasing solely a Business.
Reason for Selling: Retirement