This company is a highly innovative brand in the coffee products market. They specialize in aftermarket tools and accessories for popular Breville home espresso machines. Their custom-designed products are created in-house and have won the loyalty of coffee enthusiasts worldwide. With strong brand recognition and a premium price point, they have achieved healthy net margins. The company operates through B2B and DTC channels, with sales primarily on Amazon and their Shopify website. They have a repeat customer rate of 22% and appeal to customers between the ages of 25 and 44.
The company’s operations include proprietary manufacturing of their patented and patent-pending designs. They have established strong relationships with trusted suppliers and effectively market their products through Amazon and their Shopify website. Their average order value is $85, and they have implemented a creative content marketing strategy to drive sales higher, including PPC ads, social media marketing, an influencer campaign, and email marketing to their substantial subscriber base.
The company has established relationships with trusted suppliers for their manufacturing needs. They have proprietary manufacturing capabilities for their patented and patent-pending designs. Their supply chain and logistics are well-managed to ensure timely delivery of their products to customers.
MARKETING AND KEY METRICS
The company employs a comprehensive marketing strategy that includes PPC ads, social media marketing, influencer campaigns, and email marketing to their large subscriber base. They have a strong presence on platforms like Amazon and their own Shopify website, which contribute to their sales mix. Their marketing efforts have resulted in a 22% repeat customer rate and a lifetime customer value of $206.
The company currently sells through B2B and DTC channels, primarily on Amazon and their Shopify website. They have the opportunity to expand their sales channels, including reaching out to wholesalers and coffee retailers. This untapped B2B market has significant growth potential and can further increase the company’s sales and revenue.
The key metrics for this company include a repeat customer rate of 22%, an average order value of $85, and a lifetime customer value of $206. They have healthy net margins of 31% and have achieved strong brand recognition and trust within the coffee industry.
The customer base of this company primarily consists of coffee enthusiasts who own Breville home espresso machines. They target customers between the ages of 25 and 44, who are discriminating about their daily coffee and home coffee machines. With strong brand recognition, the company has built a loyal customer base that values their high-quality products and excellent customer service.
BUSINESS MODEL & RESOURCES NEEDED
The company currently employs 7 individuals to manage daily operations. They have an experienced team in place to handle various aspects of the business, including manufacturing, marketing, and customer service.
The coffee industry is a thriving and highly profitable market. The demand for coffee accessories and tools is on the rise, especially in the automatic espresso machines segment. This company has carved a niche for itself by specializing in aftermarket tools and accessories for Breville home espresso machines. With strong brand recognition and customer loyalty, they are well-positioned to capitalize on the growth in the coffee industry.
OPPORTUNITIES TO SCALE
There are multiple scale opportunities for this business. One opportunity is to expand sales channels and tap into the B2B market by targeting wholesalers and coffee retailers. Another opportunity is to introduce new products or product lines to cater to a larger customer base. The company can also explore international expansion to reach new markets and increase their sales.
Asking Price: $7,000,000
Gross Income: $3,302,692
Cash Flow: $1,027,456
Year Established: 2019