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Most of the advice posted thus far has been good and worth taking into consideration.
As you read this, please keep in mind that I haven't live in PA for the past 4 years and haven't lived in the area of the shop for the past 15 years. (But I do try to get back as often as I can)
I assume you a) live in the area and b) have been to the shop. That area is not a flyfishing mecca like the State College and Harrisburg areas. Never the less it is a well established business. It has been there for as long as I can remember.
If you recall, after "the movie" came out, there boom in fly shops. Everyone with a vest and fly rod hung out a shingle. Most have since fallen by the way side. The fact that this shop has stood the test of time for the past 60 years say alot. Their reputation alone would be worth seriously considering buying the business.
The last time I was in the shop, I had a discussion with one of the guys who worked there about what he though it would take to purchase and run the business. Whoever buys the place needs to run it full time. The people who work there do so because the love what they are doing, not because the pay is great. One of the first rules in owning your own business is that the employees get paid first. There maybe times when you may have to go without a pay check.
Assuming that you've been to the shop you know that the building needs some work. If it were to stay in its current location, capital improvements will be necessary.
People don't necessarily come to that area because of the great flyfishing. Granted there is a draw, but it is not a great as other portions of the state (Commonwealth). So I assume the major customer base is from locals (walk-ins) and internet/catalog sales for rod building supplies. Thus far they have managed to hold their own.
Having live in the area, I can never really recall them doing any local advertising. Sure, you see their name at spring fishing shows and key times of the year. But I can't really recall them doing any major advertiseing outside of the normal fly fishing outlets. I know numerous people who have driven past the shop all their lives and never know it was a fly shop. That is one thing I would try to change. They need to increase their local exposure. I would also try to hook up with Ken Hunter and get a little exposure on that TV show he does on the weekends for that W-B station.
I don't know how much guiding is done out of that shop. The shop where I currently live, does a great guiding business. If it were mine to do, I would consider adding a decent guide staff. I would also consider organizing trips to other fishing destinations.
I know they offer classes and demonistrations. I would seek to increase those offering if possible. I would also try to bring in such noteables as Lefty, Bob Clouse and maybe even Joe Humpheries on occation to drum up interest in business. Half the battle is getting people in the door.
Another thought is to consider selling other items that fit in with fly fishing, like canoes and kayaks, camping and backpacking equipment. That area of the Commonwealth has some great hiking and camping places. However, in doing so you run the risk of spreading yourself too thin. At the very least, I would start out small and go from there.
I wouldn't count on the business being my single source of income, nor would I invest every last cent into the business. You may have to approach it from the stand point of a full time hobby. But let me say something about hobbies. Think of all the wanna-be Norm Abrams in the world with their little woodshops in the basement. Do you think that if they were full time carpenters that they would spend their evenings and nights messing around in their woodshop. I doubt it. So if you are thinking about buying the shope because it is a way to use your hobby to make money, then don't do it. That's a bad idea.
That shop, in its present location, would be great for someone who retired early, had a strong retirement income and could afford to purchase the business. As a matter of fact, I think that is what the current owner did. I wouldn't expect to make a lot of money on the business. But it would give one a reason to get up in the morning (as if being retired and being able to fly fish all the time isn't enough of an incentive).
Jeff I don't know what your situation is. But those are some of my thoughts, for what they are worth. The business has been on the block for over a year so it is not like it is going to be sold tomorrow. You have time to research it a little and do you homework. Without doubt, you would need to develop a business plan with long and short range goals.
Good luck with your decision. We can talk more if you want.
Tight lines.
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I also live in PA. Maybe this could be an attractive business to buy...
In looking at the business' reported financials, I see that for the 39 weeks ended 10/2/04, their revenues rose 16% to $976.9 million while their net income rose 62% to $26.5 million. The improved net income also reflects improved margins and a greater absorption of overhead costs.
But I didn't know Cabelas was for sale?
John
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PG,
Thanks! All good information that is actually more, much more than I had expected. No, I actually have never been to the shop, and in all actuallity only assumed its general whereabouts by looking at the phone number. You have definately given me more food for thought. I appreciate your input.
Jeff