This eCommerce retailer sells private-labeled, fully-branded music accessories tailored for musicians and artists. The product offerings include electronic instruments, straps, cables, and capos. The company has been in business for just under four years and has solid books and records, making it an excellent candidate for an SBA loan. The company sells its products primarily through Amazon, but also generates sales through its website, Walmart, eBay, and Reverb. The company is doing well YOY, with every ASIN on Amazon garnering at least 4.5 stars. The business is highly lucrative and scalable with a wide range of growth opportunities.
With barriers to entry, including engineering R&D and the need to identify the most suitable products for musicians, new competitors in this niche industry face an uphill battle. But with a seasoned business in place, this highly profitable brand is poised to expand into related segments, deepen cross-sells, and reach a larger customer base.
The company strives to offer the highest-quality components to complement its quality manufacturing process. It researches and identifies the best-quality manufacturing partners to optimize the supply chain and minimize overhead costs.
MARKETING AND KEY METRICS
The company leverages Amazon as its primary sales channel and achieves superior reviews with 4.5 stars or above for every product. The brand also has a functional Shopify website, a presence on Walmart, eBay, Reverb, and Amazon EU. The company is capable of expanding paid online marketing and engaging in social media marketing.
The company has an extensive sales channel that includes Amazon, the primary channel, with supporting sales generated through its website, eBay, Walmart, and Reverb. The company can expand its sales channel with live dealer sales and in-person demonstrations.
The company’s products have received at least 4.5 stars with nearly zero advertising investment. It has an unrelenting commitment to customer satisfaction and a superior record of increasing customer reviews with a low return rate. Efforts are ongoing to expand search engine optimization (SEO) and increase marketing efforts.
The company has a customer base primarily clustered in North America. The company faces stiff competition but has managed to build a loyal following, who rave about the quality of its products. By prioritizing customer satisfaction, reducing return rates, and expanding the product and marketing mix, the company can attract and retain more customers.
BUSINESS MODEL & RESOURCES NEEDED
The company is run by one employee who manages the day-to-day operations, investor relations, and product manufacturing. The company can expand by adding additional product offerings. The owner is willing to remain engaged to ensure a smooth transition.
The company operates in the consumer audio, music accessories, and electronics market. The instruments and accessories products are designed to meet the needs of musicians and all types of artists. Barriers to entry into the market are high, including engineering R&D, and competitors face an uphill battle to capture the buyer demographic. Examples of companies in the same space are Sweetwater and Zzounds.
OPPORTUNITIES TO SCALE
The company has significant scalability potential through expanded product offerings, product line extensions, and enhancing SEO and digital marketing. The company can also reach more customers by developing social media marketing campaigns and participating in live dealer sales events. Additionally, expanding the company’s Amazon product offerings to Amazon’s EU branches can drive exponential growth.
Asking Price: $1,900,000
Gross Income: $1,901,963
Cash Flow: $463,008
Year Established: 2014