Website Closers presents a fun and energetic company that offers promotional items and party accessories to a mostly Business to Business (B2B) audience. Operating for more than 12 years, this promising acquisition is fully established within their field. Doing 85% of their business wholesale, this company has established strong ties throughout the country that lays a strong foundation for an acquiring party to enjoy the benefits of the company’s current cash flow while also using that foundation to further grow the business. With a long-standing reputation for quality and customer service, this opportunity is on the precipice of impressive growth.
Leveraging a dynamic mix of stock and dropship, this proven contender offers more than 4,000 SKUs with an average order value of $150. Focusing on seasonal and promotional offerings, this business drives consistent sales with highly customizable products. Currently focusing their efforts on business to business connections, 85% of all sales come from B2B connections with over 3,000 loyal wholesale customers. Working to drive additional revenue, expanding selling platforms should help this brand gain awareness and encourage increased conversions. Selling these highly personalized products on both Etsy and Amazon will skyrocket direct to consumer awareness to bolster this company’s overall sales.
Utilizing a 2,500 square foot warehouse, this company ships 60% of all its orders themselves. The 2 current owners of this company are responsible for purchasing, sourcing, logistics, marketing, shipping, production, bookkeeping, IT, and coordinating both employees and contractors. This extensive list would be effectively minimized with the addition of a logistics specialist as well as a marketing manager. At the moment, this company employs 2 part-time independent contractors who are in charge of packaging, shipping, and production.
MARKETING AND KEY METRICS
Drawing in qualified leads and industry wide awareness, this company handles its marketing in-house with a focus on SEO, PPC, Facebook advertising, Affiliates, and a partnership with ASI, a promotional product organization. While this is a strong strategy, it could be effectively built upon through organic and paid social media, modern website design updates, Google Ads, and more to grow this company’s consumer base and share of voice.
Expanding selling platforms such as Etsy and Amazon, enhancing marketing strategies, and developing relationships within the party industry are some of the growth opportunities for this company. By tapping into different sales channels and diversifying product lines, the company can increase its sales and market share.
The key metrics for this business include average order value of $150, number of loyal wholesale customers (3,000), percentage of sales from B2B connections (85%), and the revenue from additional selling platforms (Etsy and Amazon).
The customer base of this wholesale promotions company primarily consists of businesses looking to purchase promotional items and party accessories. They have a loyal customer base of over 3,000 wholesale customers who regularly place orders for customizable products.
BUSINESS MODEL & RESOURCES NEEDED
The 2 current owners of this company handle all human resource responsibilities, including coordinating employees and contractors.
The promotional and customizable products industry is a thriving market where companies provide a range of items that can be personalized for promotional use or as gifts. This industry caters to businesses and individuals looking to promote their brands or create customized products for special occasions. Examples of companies in this industry include customized merchandise suppliers, promotional product distributors, and personalized gift retailers.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business, including expanding the SKU offerings, improving marketing initiatives, building partnerships within the party industry, and developing a stronger online presence through social media and website design updates. By capitalizing on these opportunities, the company can scale its operations and increase its customer base.
Asking Price: $350,000
Gross Income: $317,015
Cash Flow: $97,256
Year Established: 2009