How much money can be made in Sheds and Garages?

Posted on : February 8, 2014

This one is always quite hard to find out, until a Shed company goes on the market.

Shed_company_for_sale

 

That is a lot of sheds and a lot of steel.  If you extrapolate the figures here it also tells you the approximate margin they are making.

Note that P.E.B.I.T.A. = Proprietors Earnings Before Interest, Tax & Amortisation

Take this estimate

  • If you say 100k for rent and other expenses
  • $2 million gross sales
  • Owners earnings of $284,000, assuming this is the PEBITA figure.
  •  ~19% margin (depending on how much Gross sales are over $2 million).

 

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Sidach South Ripped Off Customers

Posted on : June 5, 2013

Approximately 12  customers have had money stolen

Approximately 12  customers have had money taken and have not received a shed – Shedeye has been personally contacted by a few and this has seriously affected some people.  Some people have taken out loans to pay for the sheds, paid in full, and will now be left with the sting of repayments.

 

A call out to the Shed Industry to assist the victims

Any shed company or rollformer that aids these victims, with the intention of minimising or neutralising the loss of the consumers, will have free advertising on this site for a year, and the satisfaction that they have helped people out in need.  I will provide a list of the shed sizes and the loss made on each shed next week and who ever can do the best deal will get the advertising.

 

A call out to the any victims that need help getting a Shed

Any person that has paid money to  Sidach North or Sidach South and has not received a shed, can you please contact us using this link.  I hope that the industry will help, as there are so many great players in this industry and this type of behaviour is simply wrong.

 

Some more background

How does this happen when it is backed by a big name in the industry?  There are a few models that are operated in the Shed Industry, and the Sidach model was to brand their distributors with their name even though they are legally separate entities.  There is Sidach National and then in Tasmania there were three distributors that were contracted to provide Sidachs sheds.  Sidach makes money in a number of ways, from a booking fee when the order it place, and markup on the shed and components and rebates from the rollformers.

As seen below these companies are all branded under the Sidach brand.

 

Sidach_South

 

It is clear from the below newspaper excerpts that Sidach is very keen to make it clear that these stores are independent, what they forgot to mention is that they were all branded under the Sidach brand.  Why Sidach  has not simply compensated these victims is completely bewildering to Shedeye.

sidach_national_Onesidach_national_Two

 

The are a number of stories behind this tragedy, this can not become another Shed Warehouse or McFadden Kit Homes.

Much more to come soon…

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Shed Companies score well in Survey

Posted on : April 8, 2013

The results were interesting to say the least.  The sample was not large enough, with only 90 respondents, but enough to draw some interesting conclusions that require some more research.

One of the questions that we asked was around the satisfaction of the end result of the shed that was purchased.  There were only three possible answers ; Excellent, Satisfied, Not Satisfied.  It was great to see that most people are happy with the end result, however of concern was one large player that scored only in the Not Satisfied and Satisfied  categories.

satisfaction_with_shed

So how did Shedeye get rated by its users.  Not too bad, but definitely room for improvement.  I am happy to announce that a major revamp of this site is being worked on to take it to the next level.

 

Shedeye_Assistance

 

Here is a happy customer from the survey.

happy_customer_shed

 

A testimonial from this customer for The Shed Company in Gladstone

The Shed Company did an awesome job, I haven’t been able to fault it. The job was held up due to weather but they kept me updated with an expected completion date and got it finished promptly as soon as it dried out.

There were some glowing testimonials, however I will leave this for another article.

There were also many additional insights about how Shedeye can be improved to ensure that the general public get the best service possible.  Thankyou to all of the site users that took the time to fill out the survey, we expected at least 10-100 times this amount given the number of registered users, however it is understandable given peoples heavy emails loads.

 

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Sheds & Guns!

Posted on : July 26, 2012

Shed has more history than the Museum!

The newly restored shed at DownsSteam Railway and Museum is for the use of volunteers to work on the LOCO 106 “Pride of Toowoomba” which hopefully will be finished in 2015 for the locos 100th birthday!

William Boden and Tom Redwood are two of many volunteers who have helped get the new restoration shed at DownsSteam Railway and Museum up and ready for the opening on Saturday. Photo Dave Noonan

The full article concerning the shed and train museum is in the Toowoomba Chronicle on 19th July 2012. From the article the shed had many uses prior to its current use – and the original shed was purchased for use as an aircraft hanger at Oakey in Queensland (not far from Toowoomba)! The shed is not that special – except it was made in America in 1942 and shipped to Australia for use in the war period. The history of the shed is amazing – it was fabricated by Bethlehem Steel in Pennsylvania in 1942 nearly 70 years ago and with a huge effort of a design drawn up by USQ School of Engineering students, the shed was able to be reconstructed after many years lying at the old Bridge St quarry!

Now for the history the steel of this shed shares:  Bethlehem Steel in Pennsylvania was America’s second largest company that started in 1857 and finally filed for bankruptcy in 2001 and all assets sold. During the 1940’s it employed some 300,000 workers with 180,000 alone in the steel ship building sector. Coincidence is that Bethlehem Steel produced this railway gun and also the shed in Toowoomba that houses a railway museum. This particular gun is now in a museum in Brazil:

“Bethlehem 177” railway gun on display at Museum Militar Conde de Linhares

Along with this spectacular piece – Bethlehem Steel in Pennsylvania was producing one naval vessel per day – which totalled 1,121 ships which was more than any other builder in the war period.

6″, 10″, 12″, and 14″ naval guns being assembled at a Bethlehem Steel facility

So this company that made the Toowoomba shed also produce huge numbers of naval and army guns at the same time, How did it manage to fit in such a small (by comparison) order for an aircraft hanger at Oakey in Queensland. Well it will be an interesting tour of the Downs Steam Railway and Museum not only looking at the 100 year old “Pride of Toowoomba” locomotive, but seeing the 70 year old steel fabricated at the same time as thousands of guns, ships and icons in America. One like this one – that Bethlehem Steel supplied most of the steel for the cable cars and tracks – always it comes back to TRAINS!

Steel for the “San Francisco Municipal Railway” system came from Bethlehem Steel!

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Stratco to close NZ shed base!

Posted on : March 24, 2012

Stratco is shutting their NZ manufacturing base in Auckland?

Auckland Manufacturing & Administration 
Block 4, 22 Harris Road
EAST TAMAKI
NZ
 Telephone(09) 274 6487
Fax:(09) 274 5140
 
Details of their other NZ sites are HERE.

After 20 years in Auckland – Stratco apparantly closed the doors to their factory last week!

Stratco Manufacturing Auckland

 

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Another Shed Company bites the Dust

Posted on : March 7, 2012

Shed Companies are dropping like flies in these difficult trading conditions and with an extremely competitive industry this is no surprise.


Unfortunately as of 01/03/2012
RimShaw Enterprises Pty Ltd, Trading as BuyaShed
has been placed in Liquidation.

For all enquiries please Contact:
Worrells – Solvency Accountants
Phone:             07 3280 6206
Email: ipswich@worrells.net.au 

The Big question is who is next?  I have personally fielded 10 calls today with people speculating as to who is next, and if the industry is  right then it is a big player indeed.

As with all rumors their accuracy is dubious, irrespective there is a very good chance for a significant shake up in the industry and there is usually a period of consolidation during difficult times.

I really hope that no consumers are taken down in this mess, as happened with The Shed Warehouse,  that shed company has  seriously damaged many peoples lives.

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Sheds & Garages Increase Value!

Posted on : July 16, 2011

Buyers and Renters demand a Shed.

Properties that have a seperate workshop, shed or garage have an advantage over properties without, by demanding higher sell prices, additional rent and also increase the chance of a sale or rental. In regional areas where the mining boom is prevelant, real estate agents report the advantages to property owners of the contsruction of a double garage or shed. Investment properties are sort after with the shed as an extra.

Reported in The Australian Property Investor – the article relates to Queensland towns of Mackay, Gladstone and Bowen. The comment by local realtor David Bugeja recently ” the ones to sell fastest were the properties with sheds”. He also reported that for a capital outlay of approximately $12,000 in a shed or garage – this will add an expected increase of $20,000 to the sale price and an extra $20 per week in rent.

In the same article Mr. Tooma of The Shed Company Mackay said “for between $10,000 and $12,000 a fully erected shed can be placed on site with the approval certificate, earthworks and concrete done”.

Even A Small Shed adds Value

The property investor can purchase a property with an existing shed or simply add a double garage to a property without. The end result is an increase in capital gain within a short time period or a guaranteed extra rental income. As stated in the article – it is wise to check local council requirements as to approvals, easements, sewerage locations and location.

For an investment of as low as $12,000 for a double garage to return an additional $8,000 extra is an extremely attractive option.

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Shed Builders Beware!

Posted on : May 12, 2011

Building contractors are being targeted by the ATO from July 2012 and hence shed erectors are likely to be targeted also. If you don’t understand your tax obligations then you are likely to find yourself facing an ugly Tax Audit.  The ATO have done their sums and from the building industry as a whole they expect to reclaim $300 million in 2014-2015 and over $500 million over four years.

The following article in the SMH states “Mr Shorten said some businesses would be required to report annually on payments made to contractors in the building industry including the contractor’s ABN. The data would then be cross-matched.”

The killer piece of tax legislation for contractors is called Alienation of personal services income and it is a horror (not just the name of it).

The groups that should be unnerved by this ATO blitz are:

  • Builders that get paid (contracted) by a single Shed Company (receiving more than 80% of their income from a single source).
  • Building sub-contractors that work for a single Builder.  This applies to  sub-contractors that work for Shed Companies that are the builder.
  • Any contractor or sub-contractor that receives more than 80% of their income from a single source.

If you are in any of these groups and you have income split with you spouse, and claimed company expenses then you are in for some hurt.  Shedeye recommends that you seek the advice of your Accountant ASAP.

Don’t take this as advice, just a warning to get some advice!  Talk to your Accountant today, if he / she has no experience with alienation of personal services income, find one that does!

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