Nilson’s Hardware &
Rent-it Center, Inc.
Swanville, MN
Business owned 32 years
Store Size:
Established 100+ years
Retail Selling Space ............................................. 5,892 Square Feet
Warehouse Space ................................................. 648 Square Feet
Office Space .......................................................... 210 Square Feet
Total Space ......................................................... 6,750 Square Feet
Plus: Packaging & Service Area
Basement Storage .................................... 1,875 Square Feet
Warehouse/Shed ...................................... 1,584 Square Feet
STORE FOR SALE INFORMATION
Store Name: Nilson’s Hardware & Rent-it Center, Inc. Store #2029
Address: 207 DeGraff Avenue
City, State, Zip: Swanville, MN 56582
Contact Person: Jeff Thomes, Territory Manager
Phone: 612/817-0516
email: jeff.thomes@doitbest.com
LISTING PRICE FOR BUSINESS
Estimated cost of inventory ...................................................... $280,000
Fixtures and equipment ........................................................... $130,000
Real estate ............................................................................... $300,000
Total asking price ..................................................................... $710,000*
LAST CALENDAR YEAR’S MONTHLY SALES
Jan Feb Mar -
$92,000
$71,000
$79,000
Apr May Jun -
INVENTORY MIX
15% ....... Hardware
10% ....... Housewares
10% ....... Electrical
$82,000
$98,000
$156,000
July Aug Sept -
20% ........ Plumbing
20% ........ Paint & Sundries
5% ........ Lbr/Bldg Materials
ANNUAL SALES
2014
$1,158,000*
2013
$1,057,000*
2012
$924,000*
Gross Margin
Gross Margin
Gross Margin
35%
36%
35%
EMPLOYEE INFORMATION
Department Managers – 1 (store manager)
Full Time Clerks – 2
Part Time Clerks – 2
Owner/Manager – 1
BENEFITS:
10% discount, 5 paid holidays, 2 week paid vacation,
Bonus ($100-500 PT; $1,000-1,200 FT)
COMPETITION
Store Name
Farmer’s Co-op
Walmart & Ace
Distance from Store
1/2 Mile
25 Miles
CUSTOMER BASE
20% Contractor
80% DIY
Territory Manager: Jeff Thomes
Regional Manager: Shawn Mahady
$85,000
$39,000
$98,000
Oct Nov Dec -
$115,000
$112,000
$131,000
10% ....... Lawn & Garden
10% ....... Fish House Parts
REAL ESTATE INFORMATION
For sale
Location: Free standing on main street
Parking Facilities: Street parking
REAL ESTATE PURCHASE INFORMATION
Sales Price: $300,000
Land Size: 4 lots
Taxes: $5,932/year
Retail Area: 5,892 Square Feet
Warehouse Area: 2,232 Square Feet
Office Area: 210 Square Feet
Total Building: 8,334 Square Feet
nd
*Note: Sale of building includes 2 floor apts.
The square footage shown does not reflect
nd
2 floor apartments or basement (both at
1,875 Square feet).
Sales figures above do not include the two
upstairs apartment income at $12,000/year very high occupancy.
**Note: The sales figures and the asking price shown
above do not include our Ice Castle RV business.
I am willing to discuss various options on this part
of the business that would definitely increase
sales for the buyer. For more information, please
see the attached narrative about our unique
business operation.
For more information contact:
Do it Best Corp.
Jeff Thomes, Territory Manager
Phone: 612/817-0516
email: jeff.thomes@.doitbest.com
Do it Best Corp. cannot confirm or warrant the accuracy of financial or other information offered or supplied by the seller.
Inventory of Fixtures, Equipment & Supplies
Item as Listed
In-Store Computer
Make Dell
Store Supplies Including Bags, Paper
Tape, String Stationary etc.
Delivery Truck
Model: Express Make: Chevy Year 2008
Display Gondolas
Display Bases
Check Out Counters
Cash Registers Make: Dell
Quantity
7
All
All
1
All
All
1
All
Desks
Glass Cutter
Paint Tinting Machines w/colorant
Paint Color Merchandiser
3
1
Hero 2000
16’
Color Match computer
Telephone System 2 lines
Identification Signs (Interior & Exterior)
Hand Trucks
Appliance Dollies
Pallet Hand Truck
Pallets
Shopping Carts
Fork Lift
Make: Bobcat
Battery Charger
Air Conditioner
Storage Shelving
Key Making Machine
Pipe Threader and Cutter
X-Rite
1
All
2
2
1
Numerous
2
1
1
1
All
1
1
Remarks
All are Dell
Large amount of shipping
supplies
Cargo van
Low mileage, indoor storage
Store was reset and all new
Lozier fixtures in 2001
Custom made
Cash Stations running
RockSolid POS
Fletcher
Red Devil dual shaker
Valspar color chip racks
Medallion, Elan, Valspar
Bought in 2013
5 ton Thermopride
In warehouse
Older Ridgid 300
Nilson’s Hardware & Rent-it Center, Inc.
Narrative
The Community We Serve
Nilson's Hardware & Rent-it Center, Inc. is located in Swanville, Minnesota. Right in the middle of Minnesota,
we are in a rural area surrounded by a unique mix of agriculture and lake country. Swanville is a community of
400 people with its own k-12 school system, a large, recently renovated and refurbished feed mill owned and
operated by Jennie-o Foods, local bank, sports bar, grocery store, post office, plastics molding business,
trucking business, restaurant and many more small businesses. The agriculture is diversified, comprised of
small to large dairy farms, a large turkey growing industry, and many more family farms.
The lake country provides a steady base of business, especially during spring and summer. There are a lot of
seasonal cabins along with many year-round homes for both families and retired owners. We are also home to
a sixteen unit assisted living apartment building.
All of this provides for very steady traditional hardware store business.
Our Unique Business Operation
We have a very strong Internet e-commerce business. This portion of our business keeps our staff busy
processing the never ending stream of orders. This business has great potential for growth. It continually
amazes each of us at the different items that sell and where we are shipping to. One of the key aspects of this
business is that roughly 50% of the orders are not stocked in our store. These items are shipped direct from the
Do it Best Corp. regional warehouses. This saves us significant dollars in inventory and labor costs, while
reducing the delivery time to the purchaser.
Nilson's Hardware has also become the "go to" place for wood pellet grills and accessories. We stock two
quality lines, The Traeger and Louisiana brands. Both are very popular and provide us referrals and ongoing
pellet and seasoning business. We hold demonstration events in spring and summer to promote these.
A very key part of our business continues to be the Ice Castle RV business. The annual sales numbers provided
do not include this portion of the business, nor is this portion included for sale with the hardware & rent-it
business. However, I am willing to discuss different options on this portion of the business. As presented, I
would keep the wholesale portion of the Ice Castle business and Nilson's Hardware would continue to be the
retail outlet. In effect I would finance / floor plan the Ice Castle inventory thus absorbing all of the risk and cost.
Nilson's Hardware would realize a portion of the profit from sales along with the accessory business of parts
sales. I am also prepared to sell the complete business if that is something a buyer would be prepared to do.
The dollars required to inventory these units are considerable and by separating the business in this way, it
reduces the capital required to purchase. These Ice Castle RV units are high ticket items that have good profit
margin, with the potential for add-on sales.
We also have two - 2 bedroom apartments over the store. The occupancy of these is very high and provides a
steady income of approximately $12,000 per year.
The building itself is in very good condition. The store itself is consisted of 3 sections: the oldest has a
basement and two stories. It is built extremely well and is in very good condition. Customers love coming into
that portion and seeing the wood floors, etc. The middle section is block and was added on approximately 40
years ago. The newer section was built in 2001 along with our warehouse building on the back of the lot. Also
at that time we did a complete reset of the store with all new Lozier fixtures. We have utilized RockSolid for our
point of sale and inventory software for many years.
Our rental business is a steady business that does not seem to vary from year to year. Some of the large items
include a Bobcat (new 12/2013) a trencher, scaffolding, pressure washer, drain cleaning machines and much
more. The rental business not only generates revenue directly related to the rental item, it also brings the
customer into the store twice.
We also sell green goods. We stock a good selection of bedding plants and flowers for about six weeks every
spring. This provides excitement and a surge of energy for both our customers and our staff.
Last but definitely not least, I have a great staff. The amount of work and diligence that goes into the ecommerce business along with attending to our local customers keeps each of us going every day.
Randy Nilson