Kitchen business with Coromandel lifestyle

Mastercraft Kitchens at Whitianga has a modern plant. Here Dene Perry operates a PVC edging machine - part of the business. Photo / Supplied

Mastercraft Kitchens of Whitianga, at 243 South Highway on the Coromandel Peninsula, is being marketed by Linda Harley and Nuree Allan of LINK Business Broking as a going concern with an asking price of $389,000 including all plant, equipment and stock.

"This is an excellent business for someone who wants to mix a professional business with a lifestyle location," Harley says.

The business was launched in November 2003 when Dene and Sharon Perry moved to Whitianga to establish a new life for their young family.

Dene, a professional cabinetmaker and Sharon, a baker, were also looking for a place where they could establish a profitable business.

"We operated under our own brand for 18 months and then in June 2005 we were approached by Mastercraft to become a licensee for the Whitianga and Coromandel region," Dene says.

Sharon says: "The licence provided us with national brand recognition for our product, and the support from the licensor means we are able to provide our clients with up-to-the-minute designs and products."

Mastercraft has 15 branches across New Zealand located in Hamilton, Napier, Kumeu, Mt Wellington, Otorohanga, Pukekohe, Rotorua, Tauranga, New Plymouth, Thames, Wellington, Whangamata and Whitianga.

The licence to use the brand provides licensees access to valuable services and suppliers.

While there is no royalty charged on products manufactured, a group fee paid on sales is used for marketing including television advertising.

"Mastercraft provides a number of benefits to the business that independent owner operators have difficultly competing with," Harley says.

"Services that owners can access from Mastercraft include drawing and design software, pricing software, accounting systems and professional marketing materials that are tailored to each specific licensee.

"In addition there is a competitive supplier network, offering the majority of raw materials at a competitive price rate and support."

Sharon says being part of the Mastercraft group gives access to new products as they come to the market.

"Most of the products have been tested by someone in the Mastercraft dealership meaning we can use them with confidence rather than through trial and error with our clients," she says.

'We also have access to a broad range of fitting suppliers including Hettich International. All of this means we can give the 10-year Mastercraft Guarantee to our clients with confidence."

Allan says the business has excellent premises with a modern plant and equipment. There is a substantial client base, with a broad range of property developers, builders and retail clients throughout the region.

"The business has traded well since 2005, although there was a reduced turnover during the 2009 financial year. However, the net surplus to two working owners was still a respectable $160,000 plus," says Allan.

Dene says trading has improved recently with excellent forward orders well into the new year.

"Anyone who has visited Whitianga and the greater Coromandel region recently will be familiar with the new Waterways development that is under way," he says. "Waterways includes the construction of new apartments and other buildings that require high-quality cabinetry including kitchens, bathrooms and other cabinetry, and Mastercraft Whitianga is in a good position to provide these."

Allan says the business is one that will appeal to purchasers attracted to the lifestyle of the Whitianga region with boating, diving and trekking on their doorstep.

"The business has two trade staff employed and one casual employee, with Dene and Sharon carrying out the design, administration and management roles," says Allan.

"It is well suited to a husband and wife team with experience in this area, but with the systems that are in place, it also provides flexibility for someone who has sales and marketing skills and who wants to manage the business with staff in place to complete the administration roles."