Flippa
FOR SALE
Business Name

Confidential

Business Model
e-Commerce
Industry
Design and Style

$300,000

Asking Price
Multiple 2.8x

+ $20,000 Inventory

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This 6-year old watch and accessory DTC and B2B brand with notable partnerships with luxury brands like Mercedes-Benz and the Guggenheim.
This business owner has connected their financials with QuickBooks Online
This business owner has connected their site traffic with Google Analytics

Facts and Figures

Location
United States
Date of Founding
2013
Full-Time Staff
Owner Operated
Annual Revenue
$245,063
Annual Expenses
$138,721
Annual Net Profit
$106,342
Profit and Loss
Note: Where the business is less than 12 months old the annualized data represents total sales for the period of operation.

Recent Performance

Month April 2019 May 2019 June 2019
Revenue $8,445 $9,497 $13,602
Expenses $6,113 $8,543 $1,824
Net Profit $2,332 $954 $11,778
Month June 2019 July 2019 August 2019
Pageviews 39,480 38,355 7,080
Users 6,607 7,865 1,609

Note: Traffic data was provided on 08 August 2019. Enquire for more recent data.

Business Description

Based out of Pennsylvania, this creative business sells its unique range of innovative watches, watch bands and accessories, including resin jewellery, from its showroom, DTC via their website, in design stores and gift shops, and has sold to more than 100 museum stores, world-wide. Products can be described as innovative yet functional, emphasize minimal design and make use of natural, unconventional materials such as wood, marble and stone. The business sources the finest materials from around the world. Importantly, this is not a dropshipping business, but the brand has recently introduced some drop-ship items and is generating a return. Orders are fulfilled (packed and shipped) from Pennsylvania, except for a small segment of white label products and a couple of items which are sent direct to consumers from the manufacturer. The business generates wholesale income and has some notable B2B relationships over the years. Since establishment in 2013, the brand has collaborated with a number of major luxury brands including Mercedes-Benz, Project Runway, Maker's Mark, and Refinery 29. The current asking price of USD$300,000 does not include inventory to the value. There is the opportunity for promotional product expansion, we have 400+ major media press hits, so the recognition and familiarity of the brand support acquiring new custom B2B accounts.

How does your business make money?

The business makes money from direct-to-consumer, wholesale and B2B sales. It has had partnerships with major brands like Mercedes-Benz and Maker’s Mark and has sold to or have direct buyer connections with buyers at major museums like MoMA and the Guggenheim. These partnerships are highly unique, and valuable for an eCommerce business. The average profit margin for direct-to-consumer sales is 80-85% which can be attributed to strong, direct manufacturing relationships. The margins for wholesale orders is 5-6x. The brand has white-labelled sunglasses for the last 16 months which increased customer return rate significantly and offered new product categories. At this time, The business has halted selling eyewear to streamline prior to this sales process, but it's an easy opportunity for new buyers because of the reliable supply chain in place.

Why should someone buy this business?

This business is well-established, 6 years old, is widely recognized and most of the products and designs are differentiated from the market. The business has received considerable press coverage from publications such as Forbes, Inc, Fast Company, etc. The business is debt-free and has a social responsibility aspect — contributing a small % to an environmental non-profit per each collection. The brand currently has 20,000 followers on Instagram and 4,700 followers on Facebook. The business has been able to secure considerable funding from crowdsourcing campaigns in recent years. The site has great domain authority with hundreds of back-links and a large email list of 40,000 individuals. With over 400 major media hits, recognition and familiarity of the brand would facilitate the acquisition of new custom B2B accounts with ease. To date, little time or resources has been invested in paid advertising, mainly because the editorial coverage we’ve received has generated sufficient traffic

How can the future owner improve this business?

The future owner may look to integrate the business into an existing operation, using their own team and structure. If acquired as a stand-alone, the future owner could use a third-party logistics (3PL) provider or handle logistics in-house and/or employ a designer to create new designs. Alternatively, they may look to incorporate the brand logo on white label products curated through the lens of “design.” The manufacturers we use are also able to create custom designs on request. We were able to successfully introduce shelf eyewear into our range with little PR — instead of selling products to our existing database to achieve an increased order value. The future owner could improve the business by devoting more time & resources to digital marketing, in particular, paid advertising. They could look to engage influencers for product promotion and secure more partnerships. There is also the opportunity by expanding wholesale efforts, B2B projects, & product lines

Why are you selling this business?

I am selling due to a life transition. I'm relatively young, ready for a creative change, and want to finance other creative projects and ideas. I worked on the brand a year prior to launch, so I am 7 years in. This has been a hugely rewarding experience, I've learned so much, but I'm ready to start a family & pass it onto someone else who can either maintain it's traction and healthy positive returns or significantly grow it. I would really love to see it flourish even further out in the open market!

Business Strengths

  • Brand and Community Loyalty
  • High Profit Margins
  • Large Customer Database
  • Length of Operation in Niche
  • Strong Manufacturing Relationships

Opportunities for a new owner

  • Capitalise on the Emerging Market
  • Advance or Explore Retail / Distribution Partnerships
  • Increase Basket Size Per Customer

Key day-to-day operations

  • Customer Support / Service
  • Bookkeeping
  • Managing Inventory
  • Website Maintenance
  • Content marketing

Marketing

  • Email Marketing
  • Facebook Advertising
  • Word of Mouth

Inventory

Value
$20,000

Assets

  • Brand assets
  • Customer databases
  • Domains
  • Existing manufacturing relationships
  • Inventory on hand or on order at the time of closing
  • Marketing materials and collateral
  • Social media accounts
  • Website files, source code and content
  • e-Commerce platform accounts
  • Google Adwords

Social Media

Facebook
4.6K followers
Twitter
1K followers
Instagram
20K followers

Post sale support

This is support provided by the seller when transitioning the business to a buyer.

Included

Confidential

Verified Account

United States