AAA PARTY STORE FOR SALE

We started in business in 1966 selling and servicing TV's, Stereo's and all electronic products in the Saginaw County area. In 1980 we had our present location built. In 1982 we added Rare Coins and Jewelry. In 1992 we converted the entire store into a Convenient Store. Our name is "WELL RECOGNIZED" in the Saginaw County area. Our advertising in the past 30+ years has made our name very well known.

Our building is leased and has 2200 sq. ft. of area. Lease is assumable, at $1099.75 per month, till the year 2001. There is an automatic renewable clause in the lease that guarantees renewal. Landlord is excellent to work with. We are located on a MAJOR highway (M-46) in a suburb west of Saginaw, MI. We are located on the "going home" side of the road for persons working in Saginaw. Traffic count in front of our store is approximately 40,000 vehicles per day - and growing! Thomas Township, which is where we are located, is a fast growing business and residential area with mostly a middle-class type of clientele. Large glass storefront, paved illuminated parking, all new internal lighting fixtures and new ceiling tile. The building we are in was built in 1980, kept in good shape by the landlord, and was re-roofed in 1996. We have central air conditioning and forced air gas heat. Chinese take-out next door has excellent food and draws large weekend volumes of people.

We opened this store in July 1992. Our first full calendar year of 1993 showed sales of $231,861.35. THE CALENDAR YEAR OF 1997 RESULTED IN SALES OF $1,792,814.81 - and, we are still showing growth the first quarter of 1997. We showed a profit of $111,330.58 (6.2098%) during 1997 excluding payroll. All other expenses, internal improvements and increased inventory paid in full. The Corporation owes NO debts. We allow no one to run a tab and "pay us later" type of accounts. We accept Visa/MC/Amex/Discover/ATM. We have 3 full time employees. We have a small square footage store - but, our success has been based on the fact that we are not afraid to spend money on advertising (see below), improvements and increased inventory. We are the most talked about store in the area by customers, competitors and distributors. Many of our competitors employees are customers of ours.

There are 3 major distributors serving this area. They all serve 5 different counties and have approximately 1000 accounts to service. Fabiano Brothers is the largest distributor (Bud, Busch, OM, Michelob, etc.). WE ARE #10 OUT OF 1000 ACCOUNTS WITH THEM. Muehlenbeck is the second largest distributor (Miller, Milwaukee Best, etc.). WE ARE #8 OUT OF 1000 ACCOUNTS WITH THEM. Riffel's is the third distributor (Pabst, Old Style, Blatz, etc.). WE ARE #12 OUT OF 1000 ACCOUNTS WITH THEM. Promo packages (18pks, 30pks) are usually bought by the palette. On a Busch 18pk promo we will go through about 1000-1500 cases over a 6 week promo period.

Our area is not a high volume Wine area. Little low end or high end wine. Mostly $4.00 to $10.00 type of wines. Nice margins and may have a potential for growth and improvement. We stock about 70-80 of the most popular brands and flavors. We sell a lot of Wine coolers & Frozen Wine based drinks during the summer months.

Our regional area covers 3 counties. We are #17 in sales in the 3 counties. We acquired Instant tickets in mid-1994 and qualified for a LOTTO terminal (based on Instant ticket sales) at the end of 1994. Our sales continue to increase in this area. We promote it heavy with advertising (paid $3000 for a large neon LOTTO sign on the road in front of the store) and do lots of heavy in-store promotions (2nd chance drawings, etc.). Our local geographic area is a very high Lottery ticket buying area and we believe this area will continue to show excellent growth.

We carry all major brands of Cigarettes with lots of single pack sales. 50-55% of sales in single packs. Sell 400-500 cartons a week and growing. We have excellent rapport with the Cigarette reps in the area and receive about $450.00 per month in rack payments, position payments, display payments, etc. per month. These payments alone pay for almost half the leased building monthly rent.

We installed a 6' shelved humidor about 1 year ago and stock about 40-50 brands and/or styles of Premium Cigars. This is a very high profit area and is growing strongly. This area is HOT nationwide right now but will probably fade in 3-4 years????????? May be a fad.....or, may stay strong.

Here is an area that you SHOULD NOT neglect. We advertise in print in Shopper Guides May thru December every week. Our heaviest hitter is on Cable TV Weather Channel crawl lines. We have an exclusive locked in renewable contract with TCI Cable in 3 Townships plus the City of Saginaw. These ads run 100 TIMES per day on ALL systems. Almost every person on cable will tune in to the Weather Channel at least once a day to see what the weather is going to be like. THIS IS "VERY" EFFECTIVE CHEAP ADVERTISING. Our contract cost for the 3 Townships is $120.00 per month total. City of Saginaw and surrounding Townships $150.00 per month. You cannot find cheaper more cost effective advertising.....ANYWHERE!

We have 22 doors of front load coolers for Beer, Wine, Pop and Ice Cream. All in excellent condition. Newest cooler is a 5 door about 1 year old (cost $8000.+ installed). We keep our coolers set at 35-38 degrees. Try to keep coldest Beer in Town.....people love it!

Building is fully alarmed to Central monitoring station. 3 second alert time. Also have internal video surveillance system with 4 remote cameras to monitor customers and employees. 2 recorders. One full time fast speed. One 24 hour time lapse recorder. CCD cameras for day and night time video pix. Caught and prosecuted 3 shoplifters within last year. Also acts as good deterance to those "thinking" of shoplifting.

All front windows have NEON signs in them. 5 additional NEON signs on in-store display sections. 3' x 6' NEON "LOTTO" and Beer/Wine sign on main road display plus additional illuminated 3' x 6' bubble sign on road display.

We have a full time service department for TV's, VCR's, STEREO's, MICROWAVE's and HOME TELEPHONE's at the store. We make NO home service calls. One full time repair person handles this department. Labor charges are split 50/50 with this person. The store keeps 50% of the labor charges and ALL the profits on parts involved. This is a WIN/WIN situation for the store. This is an excellent source of side income and, along with all Cigarette company promo payments, PAYS YOUR MONTHLY RENT!

Can and bottle returns are normally a LOSE/LOSE situation because of space and the labor time of sorting them. 2 years ago we were getting 132% return on empties. BUT, through a very shrewd and ingenious market manuver, we have reduced this to 39% returns. 61% of cans and bottles that were sold here in 1997 NEVER came back here. This is a WIN/WIN situation that we have created for you!

We have previously been in the Coin Business for over 30 years (since 1962). We still have current Yellow Page ads running listing us as a Coin Shop....and, still buy Coins and market them over the Internet. If you are Coin and Bullion familiar....this will be a business you can continue. I, personally, have a vast amount of Coins in the bank that have been accumulated over the past several decades and I market them on the Web. The Coin inventory does not go with the store....nor does our Internet marketing. BUT, if you so desire, YOU WILL HAVE THE CURRENT PHONE NUMBERS AND YELLOW PAGE ADS GOING FOR YOU IF YOU WISH TO CONTINUE THIS PORTION OF THE BUSINESS. You can easily just ignore the Coin portion if you wish. We just want to inform you that it is there if you wish to continue it. This is a good long term profitmaker if you know how to buy and sell Rare Coins and Bullion.