This eCommerce company specializes in selling drainage products and accessories to homeowners or for commercial use. Its proprietary products are exclusively manufactured for them, giving them an edge in the market. The brand has contracts with major wholesalers, such as Home Depot and Lowes, and expanded to sell products on Amazon in 2021. Its products offer solutions to drainage issues in front and back yards, patios, driveways, sidewalks, and pools, with the bonus of buyer assistance for every step. The U.S. real estate market is on fire and expected to continue growing, increasing sales, and making this brand the premier supplier of a wide selection of trench drains.
This business has flourished since 2016, marketing plastic drainage products on its eCommerce website with a high AOV of $300. The company has new products in the pipeline, ready to be launched, and has a sound, fully developed business model to handle all aspects of sales, managing orders, and fast and efficient shipping.
The business has contracts with wholesalers such as Home Depot and Lowes, and the company now makes a healthy 50 shipments per day in the spring, summer, and fall, and 20 shipments each day during the winter months. The company will start using Fulfillment by Amazon for orders in January 2022.
MARKETING AND KEY METRICS
The brand has accomplished sales growth without a traditional marketing plan but has new products ready to be launched. With the brand’s recognition, there is tremendous potential for boosting sales through a well-crafted marketing plan.
The company’s products are sold to homeowners and commercial property managers who can purchase directly from the website or through major wholesalers such as Home Depot and Lowes. As the real estate market is expanding rapidly and real estate promotion is in high demand, new sales channels and growth opportunities can be leveraged by offering new related products.
60% of gross revenue is coming from Home Depot, 20% from Lowes, and an additional 20% from Amazon
This brand serves homeowners and commercial property managers experiencing drainage problems.
BUSINESS MODEL & RESOURCES NEEDED
The company has only one employee.
The field for different types of drainpipes, including plastic, concrete, steel, and others, is expanding rapidly today. The field has experienced significant development and is projected to grow solidly thanks to an increase in home and commercial construction projects as well as the need to address aging pipes in older houses and office buildings.
OPPORTUNITIES TO SCALE
New products can be launched to these established, hard-to-get relationships with Home Depot, Lowes, and Amazon. Considering the long life of these products—over ten years—having contracted wholesale partners is vital for generating healthy, continuous revenue. As the infrastructure is already in place, there is ample room to scale up.
Asking Price: $2,500,000
Gross Income: $1,495,591
Cash Flow: $433,350
Year Established: 2016