Buying an existing retail operation

Discussion in 'Business Operations' started by perrymiles, Feb 9, 2007.

  1. perrymiles

    perrymiles LawnSite Member
    Posts: 1

    I am a consultant who is evaluating an existing company for acquisition for a client. The gross margins on equipment sales look very low, but I am not familiar with the industry. Does anyone have any industry data, or any words of wisdom about gross margins on equipment sales? Any thoughts appreciated.
     
  2. awillardandrews

    awillardandrews LawnSite Member
    Posts: 9

    How can you sell advice when you know nothing about the industry? Nice. The blind leading the blind.
     
  3. barefootlawnsandlandscape

    barefootlawnsandlandscape LawnSite Senior Member
    Posts: 296

    profits aren't made on sale of equipment, but rather on the sale of parts and service.
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Parts and Service can be as much as 60% of the total profit generated at a equipment dealership
     

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