St. Paul, MN -- Fairway Flyerz is For Sale [Twin Cities, MN Disc Golf Retailer]

[dark_clark]

St. Paul, MN -- Fairway Flyerz is For Sale

A new online-only disc golf retailer seems to be created every few months. In my experience, dedicated brick-and-mortar disc golf equipment retailers appear to be few and far in-between. Back in my day, this place was the closest dedicated retailer within a 250-mile radius from my hometown.

For me, Fairway Flyerz in Little Canada (St. Paul, MN) was the first equipment retailer I visited that had (nearly) all manufacturers, all molds, all weights, portable baskets, etc. When I first walked throught the doors of this establishment, I was like a kid in a candy store. Then when I went to Gotta Go Gotta Throw, I had to file for bankruptcy (buudum-cha).

Fast forward like ten years: Through my frequent visits to Fairway Flyerz, I had a half dozen conversations with owner guy (Mike). Learned a little about the game, listened to stories about owner guy's wall hangers, found about what's happening in the MSP disc golf scene.

Hopefully this business sale is just a 'changing of the guard.'

LINK:
http://minneapolis.craigslist.org/ram/bfs/4867921181.html

Photo of CraigsList posting attached, as the link will expire soon.

 

[dark_clark]

CraigsList Post Photo

 

[steinkecm]

Would be nice if he posted what he's looking to get for it.

 

[TalbotTrojan]

Sounds like it only includes the one store and not all his little pay to play stands that he has contracted with specific parks and rec people at some of the courses in the area. I would be weary of this shop. GGGT is clearly putting this shop, which is only centrally located between courses but not at any course out of business.

 

[Cgkdisc]

The nearby Acorn course renovations will likely increase player traffic in the area beyond its already high levels. Owner has long term family matters to handle that require moving out of state for some time. Kiosks at courses are on year-to-year contracts and could potentially be renewed by new owner in negotiations with cities.

 

[Aim For The Chains]

Would be nice if he posted what he's looking to get for it.

I believe around $250k ... :\

http://us.businessesforsale.com/us/...ds-Store-In-Growing-Marketplace-For-Sale.aspx

 

[BirdieMachine]

I believe around $250k ... :\

http://us.businessesforsale.com/us/...ds-Store-In-Growing-Marketplace-For-Sale.aspx

Does it include the building? Wonder what expenses are.

 

[DinosaurThunder]

I would be more interested in the inventory and contracts with the local parks over the shop itself. I would then find a more centrally located business location with small retail space/cheap rent.

 

[steinkecm]

I believe around $250k ... :\

http://us.businessesforsale.com/us/...ds-Store-In-Growing-Marketplace-For-Sale.aspx

That's inordinate.

I understand that there's a possibility for a $250k per year revenue, but that does not mean that's what the business is worth. According to that website, it's worth upwards of $36,000 plus taking over a lease. Obviously, it's inherent, appraised worth would be higher than that, but no smart investor is going to give him $250,000 for the business; rather no bank is ever going to back a small business loan for that kind of capital with so little opportunity to pay it back, even at a sales base of $250,000, which is fairly high, considering business slumps from November to April, no matter if you're open every day in the winter or not.

 

[Aim For The Chains]

Does it include the building? Wonder what expenses are.

nope.... I imagine Roseville taxes alone off rice st is a real nice bill'

 

[juju]

Tree fiddy

 

[Muskiebite]

Tree fiddy

Did I ever tell you about the time I saw the Loch Ness Monster at Kaposia?

 

[Cgkdisc]

I would be more interested in the inventory and contracts with the local parks over the shop itself. I would then find a more centrally located business location with small retail space/cheap rent.

Unless you have significant online business like GGGT, I think DG retailers are more successful being located near a busy course than just "centrally" located, especially with other retail operations in the metro. Twin Cities has more retail outlets for discs than any U.S. city from what we can determine.

 

[ThomasOrion]

Did I ever tell you about the time I saw the Loch Ness Monster at Kaposia?

THOMAS
-August. There's a knock on the door.
I open it, and there's this cute little
girl scout-

NELLIE
And she was so adorable, with the little
pig tails and all.

THOMAS
-And she says to me, "How would you
like to buy some cookies?" And I said
"Well, what kind do you have?" She had
thin mints, graham crunchy things-


NELLIE
Raisin oatmeal.

THOMAS
-Raisin oatmeal, and I said "We'll take
a graham crunch. How much will that
be?" And she looks at me and she says,
"...Uh I need about tree-fitty."

NELLIE
...Tree-fitty.

THOMAS
Well, it was about that time that I
notice that girl scout was about eight
stories tall and was a crustacean from
the protozoic era.

NELLIE
The Loch Ness monster.

THOMAS
I said, "Dammit monster! Get off my
lawn! I ain't giving you no tree-fitty!"
It said, "how about just two-fitty?"
I said, "Oh, now it's only two-fitty!!
What?! Is there a sale on Loch Ness
munchies or something?!"

NELLIE
Lord, he was angry.

THOMAS
Damn right, I was angry!

 

[ThomasOrion]

haah I live right by Acorn (new to the area) and know all about Rice St. area of St. Paul, haha

 

[shawny0123]

Seems like a steep price for only having $18,000 in included inventory. That's really not that much inventory to be honest.

 

[steinkecm]

Seems like a steep price for only having $18,000 in included inventory. That's really not that much inventory to be honest.

It's really not -- you assume an average costs of about 6.50 dollars per disc, depending on which manufacturers, obviously, but assuming you have a similar inventory per plastic type, it's only about 2,700 discs. Noticing that he has a number of bags on the wall, baskets and the like, that eats up a ton of that $18,000. So it's likely far less than that.

Either he has incorrectly calculated this, or he runs super thin on plastic. Which is no way to run a business that has so many particular customers.

 

[Cgkdisc]

As a smart businessman, you reduce inventory as you move into winter in this part of the country (white discs in particular) plus he knew he was going to be selling the business for a while.

 

[steinkecm]

As a smart businessman, you reduce inventory as you move into winter in this part of the country (white discs in particular) plus he knew he was going to be selling the business for a while.

Fully aware of this. But then his sale price needs to reflect what it is worth today. Not what it could be worth.

 

[Cgkdisc]

Business value is typically based on annual sales. Inventory value primarily matters for liquidation.