SBA-Approved 35-Year Brand in the Cast Iron Products Vertical: In-House Designs, Home Decor, Old Fashion Hand Tools, 70% of Sales on Amazon
This eCommerce company has been in the cast iron products vertical and is known for its unique home decor items and old fashioned hand tools. The company has been in business for 35 years, with in-house designs and three Chinese vendors that make up 100% of product purchases. The owners focus on creating exclusive products that have long-term viability within multiple niche markets. The company mainly sells through Amazon and has little advertising outside of a small Google Ads budget. With abundant scaling opportunities, a new owner could capitalize on digital advertising and influencer marketing, as well as venture into wholesale opportunities and expand into different markets.
OPERATIONS
The company has in-house designers that create new products and send samples to China for mold making and casting. The owners handle purchasing, payroll, bills, building maintenance, and finding new SKUs. The other owner handles all shipping labels and returns, customer inquiries, and purchases shipping and office supplies. Two employees help with packing and shipping up to 150 orders per day from an 8,000-square-foot warehouse. Vendor purchase orders are placed every 2 months, but inventory has been slow to arrive due to pandemic-related shipping issues.
Three Chinese vendors make up 100% of the company’s product purchases, with vendor purchase orders placed every 2 months. Inventory has been slow to arrive due to pandemic-related shipping issues.
MARKETING AND KEY METRICS
The company has a small budget for Google Ads and does not participate in social media. There is little advertising knowledge among the owners, and outsourcing to a new agency could increase sales significantly. Targeted digital advertising, separate sales channels, and influencer marketing could be implemented for increased exposure and improved margins.
The company mainly sells through Amazon, with a small percentage of sales coming from its Shopify-built website. Wholesale opportunities have not been pursued, presenting a significant area for growth. Digital advertising beyond Amazon and affiliate marketing could be implemented.
The company has consistent sales throughout the year but experiences seasonality with individual products. The customer base is diverse, and inventory management is straightforward. Gross income is $1,280,609, with a cash flow of $247,567.
The company’s customer base is diverse and stable, with each product experiencing seasonality but selling consistently throughout the year as a whole.
BUSINESS MODEL & RESOURCES NEEDED
The company has two owners who handle different aspects of the business, with two employees who help with packing and shipping.
THE INDUSTRY
The cast iron products industry is niche, with few competitors and high potential for exclusive designs. The company has created a barrier to entry through its unique products and focus on niche markets. The company sells within several different niche markets, with each as standalone from the others, providing protection against downturns and competitors. The customer base is diverse and stable.
OPPORTUNITIES TO SCALE
Abundant scaling opportunities exist for a new owner, including digital advertising on the right channels, wholesaling, venturing into different markets, and influencer marketing. Due to lack of advertising knowledge, the brand can be scaled drastically. A strong email campaign for sales and promotions and outsourcing to an experienced agency for Amazon would likely see an enormous improvement in sales and revenue.
Asking Price: $985,000
Gross Income: $1,280,609
Cash Flow: $247,567
Year Established: 1987
Employees: 2
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