Chaffin's Garage Inc. was established in 1973 with $2,000.00 in inventory. Today, that inventory has grown to about $981,000.00. We also have added about $320,000.00 in patterns. Cores, tooling fixtures and other assets used in manufacturing about 300 different parts for the hobby. We have many very popular parts and kits which we sell retail and also wholesale to all of the other major dealers. . Grand total in assets of $1,300,000.00
Our gross income is around $500,000.00 per year. Profit margin is at least 100 percent for all parts that we manufacture. Profit margin is about 30-40 percent for all parts that we buy from other dealers.
After 45 years in business we are offering the company to a serious buyer for FREE with our reputation for quality parts and service. All we ask is a return of our investment of $1,250,000.00. See our web site chaffinsgarage.com or call 951-735-4791
Bill, We are a major supplier of new parts for the Model T Ford, second only to Snyder's. Selling the manufacturing end of the business would be very easy, But that would still leave me with thousands of other parts to sell. Problem is we have everything in parts for the Model T. The tires, Ruckstell parts and other major items would sell out fast but you would then be left with all the nuts and bolts They would be very hard to sell. We have many small parts that no other dealer has. That's good for the customer looking for a hard to find part but not good for me now that I want to sell out. I feel as if I am being punished for being the good guy for the hobby.
Dean, I would rather scrap all of the parts and business than let some scam artist take advantage of my family when i am gone. The other dealers will then be sorry they didn't buy me out when they had the chance because all of the parts we manufacture will disappear. No one else is going to invest all of the time and money required to remake all of the tooling and drawings to make Ruckstell parts and all of the other nice parts that we manufacture. This is a hell of a deal for some Model T entrepreneur.... Glen
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Patience Glen! "Good things come to those who wait"
By Chris Bamford, Edmonton AB on Tuesday, May 15, 2018 - 07:02 pm:
Glen, do you feel the parts supply/retail end would be a viable business on its own?
Chris, Retail sales is what I started out with and it was quite successful. In fact i used the profit from retail sales to create the manufacturing business and I have never had to borrowed a penny to grow the business. I think that tells it all about success.
WE HAVE DECIDED THAT WE WILL SELL THE RETAIL BUSINESS SEPERATELLY FROM THE MANUFACTURING BUSINESS IF THAT WORKS BETTER. GLEN
I sent you a PM regarding your manufacturing operation. I would love to see these parts available for years to come.
MICHAEL i DIDN'T GET YOUR MESSAGE GLEN
Got it Michael Glen
Michael good opportunity to take over the business since you are qualifying in design and mfg
Michael would be a good choice and he's in California
It appears that Michael has no money either. Too bad!
Glen, I have been waiting for a response from you- I never received an response to my original PM.
Also please keep in mind this is a huge undertaking with much to consider for whoever ends up with your business. I would appreciate your patience as I learn more about your manufacturing operation.
Sorry Michael, I sent you an e-mail through the club web site but you apparently did not get it. I tried to e-mail you a copy of our wholesale list of parts we manufacture but it was too large to e-mail. So i need your address so i can send you a copy. Would also like your direct e-mail so we can converse off line. Thanks for the inquiry. Glen
Hi Glen- thanks for the response. I sent you another PM with my email address, mailing address, and phone number.
Thank you Michael, I will send you the info. Feel free to call Glen
Michael, I have not received your Pm
Michael, Please call me at 951-735-4791
We have several people interested in buying our manufacturing business. If that sells separately the retail business can be bought at a much reduced cost.
CHAFFINíS GARAGE INC., ASSETS, NET WORTH
RETAIL AND MANUFACTURING
BY BREAKING UP THE BUSINESS INTO RETAIL AND MANUFACTURING IT MAKES IT MORE AFFORDABLE
MARKUP 20% 84,435,12
TOTAL INVENTORY $506,610.70
BUILDING AND FACILITIES,
SHELVING 36 PARTS SHELVES $4,916.67
5 PALLET RACKS $1,672.03
MASTER SERVER COMPUTER $3,771.25
HP PRINTER $752.82
SEAGATE BACKUP $107.69
POWER BACKUP $64.99
ETHERNET NETWORK MODULE $49.99
DELL UPS COMPUTER $1,756.88
HP PRINTER $377.11
POWER BACKUP $64.99
ETHERNET NETWORK MODULE $49.99
SOFTWARE QUICKBOOKS $1,061.48
NEW GASKET BOARD $84.90 SCALES $75.00
PLASTIC SEALER $175.00
PAPER ROLLER $100.00
SHIPPING SUPPLIES, $175.00
BOXES, PLASTIC BAGS $500.00
4 FILE CABINETS $624.43
2 SALES TABLES $200.00
CATALOG, PHOTOS AND ARTWORK, $6,000.00
CUSTOMER BASE, REPUTAION AND GOOD WILL NO CHARGE
TOTAL ASSETS $23654,56
GRAND TOTAL, RETAIL $530,265,26
MARK UP 20% $87,138.65
TOTAL INVENTORY $522,831.86
PATTERNS AND CORES $206,630.00
MISC SMALL PATTERNS $1,500.00
TOOLING AND FIXTURES $57,557,44
DRAWINGS, SPECS AND $25,000.00
DEVELOPMENT AND DESIGN OF NO CHARGE
RESOURCE BASE, MACHINE SHOP, NO CHARGE
FOUNDRIES AND HEAT TREATERS NO CHARGE
BUSINESS, CUSTOMER BASE, NO CHARGE
REPUTATION AND OTHER ASSETS
GRAND TOTAL, ASSETS $290,687.44
GRAND TOTAL, MANUFACTURING $813,519.30
CHAFFINíS GARAGE INC. WAS ESTABLISHED IN 1973. GROSS SALES ARE AROUND $500,000.00 PER YEAR. OUR GOAL HAS BEEN TO GROW THE BUSINESS. STARTING WITH $2,000.00 IN INVENTORY. THAT INVENTORY HAS GROWN TO OVER $1,000,000.00. THAT WAS THE RESULT OF INVESTING MOST OF THE PROFIT BACK INTO THE BUSINESS. THE SUCCESS OF THE BUSINESS DEPENDS ON HOW YOU OPERATE. KEEPING EXPENSES LOW WILL RESULT IN A LARGER NET PROFIT.
SALE OF THE BUSINESS INCLUDES ALL RECORDS, DOCUMENTATION AND DRAWINGS FOR MANUFACTURE OF ALL OF THE PARTS THAT WE PRODUCE. THE NET PROFIT OF EVERYTHING WE MANUFACTURE IS 100 PERCENT OR MORE. WE WHOLESALE TO ALL OTHER MAJOR DEALERS. THE SALE ALSO INCLUDES OUR SOURCE LIST FOR MACHINE SHOPS, FOUNDRIES, HEAT TREAT, AND BLACK OXIDE. IT INCLUDES OUR CUSTOMER BASE, COMPANY REPUTATION AND GOOD WILL.
THE SALE DOES NOT INCLUDE COMPANY VEHICLES, COMPANY BUILDINGS, THE COMPANY NAME OR THE CORPORATION.
Glen, I really appreciate that you have a nice business going.
That said, your numbers don't make sense. When you're trying to sell a business, inventory might be at cost, or, in some cases, discounted, but never "marked up".
And, a lot of the things you mention are at either full retail, or at a slightly discounted cost, that doesn't work when you're trying to move a business.
I really wish you well, but also feel your expectations are higher than any reality will support. I know you'll balk at this, but my guess is that, to take over the business, you'd have to take 400-500K from someone, and even at that they're going to be a while toting the note on the loan.
Just my two cents, from examining the books and potential on a similar business, albeit in a different field...
Glen! Have a attorney that specializes in the sale of companies, assist You, they charge by the hour and usually are well worth the expense, they have the knowledge and expertise to get the job done, just like You have knowledge of manufacturing and sale's, But making and selling a set of magneto coils is completely different from the expertise needed to sell a Million dollar company. Like Clint Eastwood said in the movie "Dirty Harry"
"A Man must beware of his own limitations"
GOOD LUCK, Hope Your company continues to thrive with a new owner.
What is your net income before income taxes?
Jim D., I think Clint said, "a man must be AWARE of his own limitations". I could well be wrong though, I have been more than once. Dave
You're correct, David.
I believe that your trade name "Chaffin's Garage" is part of the value of your business, Glen.
I can attest to the fact that a company's trade name is inherently valuable; in 1977, my Dad and I bought a business that did include the trade name. We had zero experience in the industry that the company served, and we were completely unknown as individuals. Having the company's trade name, I believe, helped keep the momentum going until my Dad and I gradually became the two people associated with the company as our predecessor gradually faded from our customers' memories.
All other considerations you list are able to be worked around. No vehicles, no buildings, no corporation; all these can be worked around with minimal problems.
Taking the name "Chaffin's Garage" out of the sale, forcing a new owner to come up with a new name, or even "Formerly Chaffin's Garage" is a handicap for the future owner/operator.
I hope you reconsider, and include the company's trade name in the sale.
Arthur, Our net income is approximately $500,000.00 per year. Bill, you are right our name is very important, but i assumed that a new owner would like to use their own name with our endorsement. Dave, We initially offered the business for sale as a complete company, resale and manufacturing. Everything was offered at our cost. We could not replace our inventory today for what we paid for it. inventory costs continually rise so i wouldn't think of selling it at discount. by breaking up the business into two businesses it makes them more affordable. However, by doing so i also expect a little profit. We are not desperate to sell. If you want a thriving business you have to pay for it.
I'm confused, Glen. In your opening post you state:
"Our gross income is around $500,000.00 per year."
Your most recent post states:
"Our net income is approximately $500,000.00 per year."
There has to be a difference between the two or else you have truly found a magical business formula.
Consider this, we have spent 43 years building the business. We have produced many very popular products for the hobby. We have made a lot of people very happy with our products and service. If that isn't worth something we will just close our doors. All of our products will just disappear and our inventory will be scrapped rather than given away. Business has been good, I don't need the money and I am not Santa Claus.
David and Mike! Thanks for the correction on old Clint's quote. I should have Googled it first instead of relying on memory."Senior Moment" close but no Cigar.
I don't think Glen saw the movie?
Please excuse the error Walter, you are right. Wish it was net. Glen
My banker won't loan against that consideration, so I will move on from it with all that in mind. Thanks for the reply.
Arthur Net income all depends on you. I haven't needed the income so i have invested at least half of the net income back into the business developing new parts and paying for the patterns, cores and tooling and new inventory. The stamping tooling for the Ford Faithful oiler alone cost $13,000.00. This obviously eats heavily into your net profit. The good news is there are few parts left to be produced. Therefore, the new owner will not have to spend that profit as we did to grow the business.
Walter, You are right, the cost of getting a loan to buy a business is prohibitive. The interest on the loan would bankrupt you. I on the other hand have never borrowed a penny to build the business. The business has financed itself with no interest.
Hi Glen, it sounds like you should hire a Realtor and give yourself a break.
I'm not trying to selling real estate Bob.
Hi Glen, Try an auctioneer. That might work for you, Bob.
Business buyers donít buy inventory at retail. That means zero profit when they sell. You canít include Ď20% markupí as an asset.
If youíre selling without the real wastage, that means the buyer either had to move the business (which is a prohibitive cost) or lease from you (where they have no leverage against bad terms).
Youíve showed the Ďassetsí, so how about sharing the liabilities, like taxes, insurance, salaries. Where do those liabilities leave the net income?
Sorry...íreal wastageí was real estate.
Eido, I am not trying to sell inventory at retail. inventory listed is at cost, not retail. I am not stupid.
You included the 20% markup as an asset. No one does that. I was not calling you stupid - or anything for that matter.
Eido, You were saying that i was trying to sell my inventory at retail and marking it up 20%. That insinuates that I am stupid. You apparently did not understand that the inventory listed was at wholesale cost with a modest 20% markup.You or no one else who is not a dealer could buy the inventory at wholesale as we did. It is an asset and we deserve a little profit on our investment. That profit is very small and you could never buy those assets anywhere else at that cost. We mark up everything that we manufacture at least !00% so we are virtually giving the business away and the buyer has a very high potential of profit.
I forgot to mention the parts that we manufacture are being offered at cost, not wholesale plus 20%. That's very little return for all of our work developing the parts.
Glen these guys on this forum are old retired and broke living in their SS and pensions. They love the cars but not making a business of Its time to find another site that specializes in mfg /wholesale/ retail It will take time to find that right ambitious person
Rj, You are absolutely right. These people, As well being as they may be, have no idea of the blood, sweat and tears that go into making a thriving, profitable and successful business. If it were not for my love of the Model T Ford and a desire to help those in the hobby i would have never done it. And now these same people think i should auction off the business at a loss. So this is all the thanks i get! It really makes me feel that no one appreciates what we did and that it was not worth while. Perhaps Ii should just have them bury all of the parts and business with me.
They will be the first ones to complain that they can t get parts
The Dealers will be crying also when all of our parts are gone. I don't think any of them will be willing to pay the price for patterns, cores and tooling that we did.
Glen! What kind of support do you expect! The T community has supported You and Your business for over 35 years, and thousands of Your parts are on the road,Your legacy lives on and will for years to come, even if you closed your doors today, and many on this forum have started and operated their own Business operations and know what it's like.
You need "PROFESSIONAL HELP" Like RJ suggested. Your work is appreciated look at Your past & current sales figures for confirmation of that fact. Good Luck & Best Wishes for a Happy retirement.
My grandfathers both owned businesses. My father owns a business. I started and own a business. I have bought and sold numerous businesses for clients. Despite RJís insinuations, Glen is going about this all wrong. There is exactly zero chance Glen will sell the business by himself under the conditions he has described. His most valuable assets arenít for sale. The structure he desires is not tax efficient for either buyer or seller. His method of valuation is ludicrous. Glen is his own worst enemy, but if anyone suggests he re-evaluate his position, heíll lash out at you. Itís also why he wonít hire a business consultant, attorney, auctioneer or any other professional who will tell him the same.
I wish for Chaffinís to live on. But that doesnít mean I or any rational person will pay a 1000-fold premium for a business just because.
Iím done with this thread. This is silly and a complete waste of everyoneís time - including Glenís.
I couldn't agree more with those who are trying to help the situation by suggesting that you get outside help. I highly recommend the assistance of a professional such as a business broker who can arrange a realistic appraisal of the business and help you find a buyer and importantly, help you make sure you have all your i's dotted and t's crossed on a sales contract. Sometimes finding the right buyer involves creative financing; sometimes it's strategic contacts the broker has, sometimes it's skilled placement of the right type of ad in the right place aimed at the right target market and sometimes it's just the blind luck that comes from having more than one person working to market the business. I spent 19 years working and advising small business owners ($500k to ~$10M in sales), and part of that was working on and implementing exit strategies. Listen to those who are trying to help you have a successful retirement.
Eido, Your comments are completley irrational. I never asked for a 1000-fold premium. Where did you get that? I initially offered the business at my cost with no mark up for my 45 years of development and sales or value of assets. What do you not understand about that? I thought that that was being very generous. Now I am offering the two facets of the business with a little built in profit for making it more affordable. And you claim that i am a greedy thief in asking for a modest profit. Perhaps you should take a nap!
Tony, In my experience the only one who benefits from an assisted sale is the one who assists. I am being very reasonable in asking a small profit for something it took 45 years to build. If there are no interested parties that's their loss not mine. Sure i want to retire to work on my cars but if the business doesn't sell, so be it . I can continue on making a lot of money i don't need. But i refuse to be taken advantage of by someone who is the real thief.
"You can lead a horse to water but You can't make Him drink"
i JUST WANT TO SAY THANK YOU TO ALL OF OUR LOYAL CUSTOMERS. YOU ARE THE GREATEST AND IT HAS BEEN A PLEASURE TO HELP YOU WITH YOUR PROJECTS. IF THE BUSINESS DOESN'T SELL WE WILL CONTINUE TO SERVE YOU WITH QUALITY PARTS AND SERVICE THAT YOU HAVE COME TO EXPECT FROM US. i HOPE I LIVE LONG ENOUGH TO SEE THE BUSINESS SOLD TO A QUALIFIED, COMPETENT NEW OWNER THAT WILL CONTINUE OUR TRADITION. WE ARE PROUD OF OUR TRADITION AND SUCCESS AND THE NASAYERS CAN NEVER TAKE THAT AWAY.
Just curios but in the evaluated price is everything from computers to shelving to tooling pricing full retail new price or as used.
I buy machinery mainly through bidspotters.com. You had a fairly detailed list in your office supply's. But nothing listed in machinery infrastructure (57,500 no break down)or do you contract most of it out.
Sad the hobby keeps loosing talented people like yourself
Joe, Everything is listed at cost. The computers and other items listed may have declined in value but are all still functional. We did not itemize the patterns, cores and tooling because the list is too long. The patterns, cores and tooling is worth more today than what i paid for them. You could not replace them today for what I paid and they are all still in very good shape today. Obviously most of the items listed are patterns, cores and tooling.
We have removed the 20% inventory markup.
Thank you Glen, for the excellent parts that I used in my rebuild. Could not have done it without your services. GLWTS. Cheers, Bill
Mr Chaffin, If were physically (and financially) able I would love to buy your business. There are a lot of "T people" that appreciate the service you have offered these past few years. I pray that all will go well with you.
Thank you William and Tank you Tommy. It's been 45 years to be exact.
Well, If no one can buy the business I will just keep it till the end. Then they can just bury it with me and I'll no longer care.
I can't believe that there are no entrepreneurs left in the hobby. I have done all of the hard work developing the business and all of the products we manufacture. All you have to do is take it over and reap the benefits. 100% profit on everything we manufacture, 30-50% profit on all other parts we sell. 951-735-4791 Glen
Glen, prior to 1 year ago yesterday I would have been very interested, but now with my handicap I don't believe that I could handle it. I hope all works out for you.
I'd be all over it Glen...but as I mentioned previously, I'm several years away from having any mobility.
My plan would be to continue your current lines but add some safety-related antique auto accessories that I'm developing in my shop.
I am part Irish but don't have the luck of the Irish. Everyone either has a disability or has no money.
Glen.with all due Respect! If this well has no water Find one that does. And with the success of Chaffins Garage over the last 43 years Most people would agree You do in Fact have the luck of the IRISH.
For heavens sake, padlock the place and call an auctioneer.
I stopped in at Chaffin's garage in the Fall of '16 to pick up a front spring.
The entire property, inside and out, was clean, the inventory neatly organized, and several people were there, ahead of me. I believe Chaffin's Garage is a healthy business with excellent customer service.
I met Glen briefly, but did not see Mark.
This business is in no stress that I could see. I do understand Glen's frustrations about selling his business. We are his customers and most of us are on the downhill side of our working lives, or have retired.
Glen's business is a full-time occupation, not a hobbyist's cottage industry.
As all of us who've bought or sold a business know, there's a lot of paperwork that goes into that process, including some information that's highly personal. Depreciation schedules, profit & loss, and tax returns are all items we don't just hand out.
The strongest two things Chaffin's Garage has for a buyer is it's reputation and it's sales momentum. It's also unlikely, given the size of the market, that any new competition will come on-line making duplicate items, such as Ruckstell parts.
I hope that Glen is talking with a business broker and/or a CPA about selling Chaffin's Garage; the most helpful thing they can do for Glen is to help him begin to view his business the same way a buyer does.
Very well said Bill. Frankly the ROI doesn't look good at all, the inventory to monthly sales inventory is about 40:1, there is no such thing as 100% profit in a business (100% mark up, yes), no true indication of operating costs etc. Glen is too emotionally involved to be objective but I am sure any individual with that much money to invest will not even be remotely interested in what went into getting the business to this point. Nor will any lender. No offense meant Glen, but Eldo is absolutely right. And R.J., I am old but not broke or retired living on Social Security. I have run my own businesses for over 40 years and fully realize that when quitting time comes I am going to probably take a beating. Most small businesses are nothing more than a job that you own. A young person with the smarts to run a business can go to work where he will have benefits and probably make almost as much money. If someone bought the business Glen describes he would work for years for little or nothing hoping there will still be enough T people around in 15 years to still have a viable business. I know I probably shouldn't post this because I don't want to offend Glen but sir, you really need professional ( appraiser) help or just accept the fact that you are unlikely to find a buyer and just move on.
I don't need a broker to tell me what a buyer wants. They want a bargain. They don't care how much money you loose. And a broker will never find you a buyer in the general public. This is a specialized business and requires a buyer who can answer both the customers needs and questions about their problems. And yes,. you are right, i am emotionally involved. Our goal has always been to help those in the hobby and supply their needs. Now, it seems that no one cares about what we did for the hobby. All of the specialized parts that we have created mean nothing. No one is willing to step up and continue that tradition. So be it then. All of our work can die with us. I will never auction off all of our work for pennies on the dollar. Business has been good, and I don't need the money, but i will not just give the business away for nothing. I would rather dump it all in the ocean. Glen
All this complaining serves no purpose. I for one am getting tired of it. Sell the business or dont but quit haranging readers with all this drama.
I know where there a boat.
There are probably people willing to step up and continue the tradition, but the same people are probably not willing to fall on their financial sword to do it.
There is a gap here between wanting whatís best for the hobby and wanting whatís best for your bottom line. It does not look like both will be satisfied. I think they rarely are.
Sorry to have bored you all with my plight. I will keep my business to myself and find a solution.