14-Year Established Online Lab Testing Service – 39% Net Margins, 650 Tests Available – No Medical License Needed!
Founded in 2006, this online lab testing service provides a wide range of investigative laboratory tests to screen general health and wellness, measure hormone levels, and test for sexually transmitted diseases. With over 650 laboratory tests available, the company enables clients to take control of their own health. The tests are fulfilled by leading national labs, and the company has a strong relationship with a nationwide physician’s network, allowing them to provide the necessary order for lab testing. With a proven track record of generating consistent annual sales and high net margins, this business offers a lucrative opportunity for a motivated buyer.
OPERATIONS
The company offers a user-friendly online platform where customers can easily order the lab tests they need. Upon ordering, the company provides a requisition for testing and instructions on where to have patient specimens collected. The tests are then fulfilled by either Quest or LabCorp, ensuring high-quality and accurate results. The company’s operations are optimized for profitability, with minimal overhead costs and efficient software to manage customer orders and lab results.
The company has established a long-term relationship with approximately 2,000 labs across the country, allowing users to choose a convenient location for specimen collection. The tests are fulfilled by Quest or LabCorp, the two largest and most prestigious national labs. This logistical network ensures fast and reliable service for customers.
MARKETING AND KEY METRICS
Despite being in operation for 14 years, the company has historically had a limited marketing budget. However, there is enormous potential for growth through targeted marketing and social media campaigns to raise awareness of the service. Many potential customers are unaware that online lab sales even exist, making it essential to increase marketing efforts to reach a wider audience. The company can also explore offering supplement lines and DIY home testing kits as additional revenue streams.
The company primarily operates through a direct-to-consumer sales channel. To achieve growth, the company can focus on targeted marketing and social media campaigns to raise awareness of the service. Additionally, offering supplement lines and DIY home testing kits can expand the product offering and attract new customers.
The company demonstrates average customer order values of $140 and a gross margin of 66%. The high repeat customer rate, with an average customer ordering six times over their lifetime, leads to an average customer value of $840. The business has achieved impressive net margins of 39% year after year, generating consistent annual sales of $3-3.5 million.
The customer base for this online lab testing service includes individuals who are proactive about managing their health and wellness. They may be seeking specific tests to monitor hormone levels, screen for diseases, or assess general health. Customers can range from those with specific medical conditions who require regular testing to individuals who want to take control of their own healthcare without the need for a primary care physician.
BUSINESS MODEL & RESOURCES NEEDED
The company employs a team of six, including a Controller/General Manager, three Customer Service Representatives, and one individual who manages and posts lab results. The current owner also plays a role in overseeing the team and overall business growth plans. The lean team structure and optimized software allow for efficient operations and high profitability.
THE INDUSTRY
The online lab testing industry provides individuals with the opportunity to order blood tests and other lab tests directly without the need for a medical license. This industry has experienced significant growth in recent years as individuals seek more control over their healthcare and increasing access to affordable and convenient testing options. Examples of companies in this industry include HealthLabs, Any Lab Test Now, and Personalabs.
OPPORTUNITIES TO SCALE
This online lab testing service presents various scale opportunities. By increasing marketing efforts, expanding the product offering, and exploring partnerships with healthcare providers or insurance companies, the business can attract a larger customer base. Additionally, expanding into new geographic regions or offering international shipping can further drive growth. With strong margins and a proven business model, the possibilities for scaling this business are limitless.
Asking Price: $5,600,000
Gross Income: $3,631,711
Cash Flow: $1,349,961
Year Established: 2006
Employees: 6
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