Website Closers® presents a phenomenally successful business in the niche field of do-it-yourself firearms finishing and customization. Operating for more than 8 successful years online, this eCommerce Company has helped thousands of gun enthusiasts build their own gun from the privacy of their home. This industry leader has experienced tremendous success by selling customizable gun parts, kits, and more. The business is only getting stronger, with sales rising 10 times higher in 2020 compared to 2019. So far this year, the company has experienced an additional 551% increase when compared to the same period in early 2020. Their sales come entirely from the company’s website, which now draws in average monthly visitor rate that exceeds 321,000+.
With an average order value of $280, this business carries more than 113 SKUs, making this brand the largest retailer of Pre-Cursor Receivers and parts kits on the Internet. Already driving market-wide appeal, this company could grow exponentially by expanding into retail firearms stores.
Sales of firearms, handguns, and other guns have been soaring in recent years, with 20 million sold in 2020 alone, and the number of first-time buyers rising sharply as well. In this extremely competitive field, this brand has discovered a highly popular niche for those who want to build a personalized gun of their own. Their immense success thus far puts this business in the right position to scale quickly and sustainable through product diversification. That could include adding other accessories to the website, expanding with new receiver designs, and offering corresponding parts kit for each one.
This company was formed 8 years ago to cater to people who love guns but don’t like the paperwork that comes with ownership. The company began selling these “80% lower receivers,” which are gun firing components that are 80% of the way to being legally considered a firearm by the government. Those parts are not subject to the same gun control laws that a completed firearm would be.
The sale of 80% lower receivers does not require a background check, paperwork, waiting period, or any government fees. It’s legal to buy and finish an 80% lower receiver into a complete firearm for personal use. For those who are not sure of how to finish an 80% lower receiver, this company has a large YouTube page that serves as an online resource. The brand has become the market leader in Precursor Pistol Receivers and has a design patent for some of its compatible inserts.
This company’s average customer is male and between the age of 25-50, a key demographic. With revenues surpassing $14 million in 2020 and now on track to more than double that by the end of 2021, this opportunity has built a loyal following among its customers. This enduring support is reflected in the 10,000+ Instagram followers and 116,000+ email addresses that this brand has cultivated.
While sales remain consistent throughout the year with more than 500+ products being shipped daily, revenues tend to peak between September and May and then slow during the summer. Averaging up to 300 customer service contacts each day, this company communicated with customers through phone calls, emails, texts, and social media posts. This company stocks anywhere from $1-3 million in inventory, depending on the season, and now have a 4,000 square foot warehouse at their disposal.
The brand’s enormously successful digital marketing strategy has utilized an impactful SEO program that includes a blog on their website, an email marketing campaign that sends out 2 emails per month, and an affiliates initiative through the brand’s YouTube channel. The brand has also leveraged social media quite effectively by making its posts relevant within several gun builders’ groups in addition to answering questions on posts to maintain connectivity with followers.
There’s still plenty of room to increase profits with this durable and terrifically successful brand. A key to that will be through product diversification. A new owner could increase the segment of the business selling parts for AR-15 rifles, which could double revenues, or add new accessories that could include red dot sights, magazines, and custom options for colors and holsters.
Another option would be to grow through new receiver designs, which could easily double revenues. The brand now has three highly desirable designs pending the approval process.
Those new designs, once approved, could be bolstered through the development of corresponding parts kits that should also sell exceptionally well.
The current owners now work 20-30 hours per week running this business, focusing on primary tasks that include maintaining supplier relationships, wiring funds for inventory, researching new products, and scheduling trade shows.
The company has a team in place that handle day to day operations. With a full-time office manager, production manager and warehouse manager, and two part-time customer service representatives, three to five part-time warehouse workers and four part-time assembly line workers all on staff to ensure a smooth process.
This company takes great pride in marketing products to those gun owners who want to assemble their own gun. Everything they carry has been personally tested by their team, which is why they know that every component and tool will work, and that the customer’s firearm will look, feel, and operate identically to store-bought models.
Their customers have responded with not only skyrocketing sales but also rave 5 Star reviews of not only their products, but also their customer service. This brand is a well-established, finely oiled machine that will continue to produce amazing profits for years to come as the gun industry remains an immensely profitable one. A new owner not only gets that strong foundation to begin with, but also the opportunity to watch it soar to unbelievable greater heights.
This eCommerce Business Represented by:
Lower Middle Market Digital M&A
Listing ID: WC2316