Website Closers® presents a 20-Year-Old seasoned brand in the Sauna, Steam Shower, and related products Vertical. They have become an authority in this space over many years of delivering excellent products and customer service. They continue to grow and thrive with a fantastic team of people behind the brand.
The Company
Upon opening at the beginning of the eCommerce era, there was little competition online, and the company built the invaluable trust and credibility that it maintains today. Through this process, it became a certified online seller of sought-after sauna brands that no longer offer the opportunity to new retailers. This is a very tight group of retailers; there are very few players in this space. This defensive moat is invaluable to this business and will continue to be a value proposition for the buyer of this business.
The founders opened the business with the intention of offering customers the highest quality sauna and steam products at affordable prices and have achieved that goal, as evidenced by glowing online reviews, consistent top and bottom-line growth year-over-year, and its premium range of products. Only brands that exhibit a strict level of consistency and responsibly are featured; quality and sustainability are important to the brand and to consumers.
2023 is on track to be a banner year. Going into the third quarter, sales have already surpassed those of 2022, demonstrating that interest in the products continues to be strong. Due to the limited availability of the best products in the market that only a select few retailers offer, this company is sought out by anybody looking to install these into their homes, whether new builds or add-ons.
A DropShipping model combined with maintaining an inventory of unique products has enabled the business to build an extensive catalog of products in high demand. Those in stock include popular pre-built saunas, heaters, and premium wood and building materials to produce pre-cut sauna kits.
Notably, a new owner can maintain the status quo or move in either direction (stock or dropship), depending on their desired roadmap. Private-label saunas, for example, are sold under two brands and represent around 25% of sales. As a result of long-standing relationships with highly reputable, industry-leading suppliers, they can be outsourced for assembly if required or remain in-house.
Audience & Marketing
Direct-to-consumer sales drive revenue, accounting for 90%, catering to sophisticated residential sauna enthusiasts. At the same time, a burgeoning business-to-business channel accounts for the remainder and includes commercial gyms, resorts, spas, and high-end residential developments. The B2B arm can be grown exponentially based on the weekly requests received by the owners. This is a potentially lucrative avenue for a suitable buyer, considering that the average order value for those transactions is multiples over the $3,200 AOV.
The marketing strategy is multifaceted and complements organic traffic and word-of-mouth referrals from immeasurable happy customers over the years. Management allocates between $2,000 and $3,000 monthly on Google AdWords, achieving a healthy return on ad spend. They use several agencies and individuals for SEO, Google Shopping, Analytics, AdWords management, and homepage ad slides. Scaling these efforts would likely result in a significant traffic and conversion increase, leading to increased profitability.
The typical D2C customers are business professionals in their 30s and 40s with high net worth. In contrast, B2B customers are generally resorts, hotels, health clubs, and contracting companies, many of which management has built long-standing relationships with.
Because a large percentage of customers are in higher income brackets, they are less susceptible to economic downturns, giving the business an enormous advantage. As a result, and because the brand is so well-established, sales remain strong throughout the year, with a healthy uptick in the Fall and Winter months.
Human Resources
The owners work full-time, primarily overseeing operations, including sales support, customer experience, and purchasing stock and supplies. Owners are looking to retire after 20 years running the brand.
Three part-time and three full-time employees handle the following responsibilities respectively:
- Sales and customer support
- Online order management, freight shipping, order support, and parcel and freight claims
- Marketplace order management, packing and shipping small parcels, and miscellaneous warehouse and office support work
- Website maintenance, such as adding new products, changing prices, and store enhancements
- Producing pre-cut sauna kits, building benching and components, and overseeing inventory levels of materials
- Pulling and cutting wood and palletizing and arranging packages for freight shipment
The future for the industry looks incredibly promising, with an increasing focus on health and well-being worldwide. As people become more conscious of the benefits of saunas, such as relaxation, detoxification, and stress relief, the demand for this company’s products is expected to surge. Subsequently, the business is perfectly positioned for a buyer to capitalize on a proliferating sector.
