Website Closers® presents an American watchmaking brand specializing in self-winding and automatic mechanical timepieces. The designs’ aesthetics express nostalgic elegance but are built for fashionable adventurists with an active lifestyle. The owner has built a strong brand with a loyal customer base and an excellent reputation for quality and craftsmanship. All timepieces sold by this company are branded with the company’s trademark. Buyers will have access to this equity and customer trust to cross-sell to new customer demographics or geographic markets.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for three important reasons:
- Superior Quality: Since launching, the founder has emphasized reliability, durability, accuracy, and style. The range of watches are not simply display pieces but are built to be sported in any situation. They can withstand extreme environments and have to pass ten different shock tests before being released. The most severe is a high-impact hammer test, where equipment submits the watch to an impact equivalent of 6,000 G. This is hundreds of times more than a car crash test. All products must remain unharmed and fully functional afterward. Customers are attracted to the quality and willing to spend considerable money, evidenced by a 40% Repeat Purchase Rate on an $825 Average Order Value.
- Market Conditions: The brand caters to the entry-luxury market, which comprises a substantial and largely recession-resistant customer base. As a result, revenue is robust throughout the year, with a healthy peak in Q4.
- IP & Retention: The company has trademarks and service marks for its jewelry and watches. Luxury watch enthusiasts continue to value exclusivity and rarity, driving demand for limited edition releases and bespoke offerings. As a result, the owner aims to release a new model monthly, maintaining an average of 24 SKUs at a given time. The catalog varies between 15 and 30, and the regular new releases encourage repeat orders, demonstrating customer satisfaction and brand loyalty.
Sourcing & Fulfillment
Movements, gears, and stems are procured from Switzerland, and cases and crowns from China. Sapphire crystals are sourced in Taiwan, and most straps are made in Thailand.
The majority of components are manufactured specifically for the brand.
A 100% stock model is utilized, and six months of inventory, including parts, are typically kept on hand. This enables the owner to plan and release products expediently and meet demand. Parts are ordered monthly, allowing the assembly to be finalized only weeks to days before launching.
Due to minimal storage requirements, a buyer can dispatch orders from their home, reducing expenses. Currently, inventory is housed in three domestic locations, and orders are shipped daily.
Marketing & Scale Opportunities
The company enjoys strong organic traffic, which accounts for approximately 50% of revenue. The remainder is obtained from an effective digital marketing approach, including Facebook and Google Ads and highly lucrative email and SMS campaigns to a vast database. These endeavors attract 33,000 monthly visitors and a combined ROAS of 8.
A new owner would have a significant opportunity to enhance these efforts and implement influencer and affiliate marketing to boost sales. Selling on prominent marketplaces is another avenue worth considering, while strategic international expansion could yield fruitful returns based on market demand globally. The company already has a modest wholesale arm that can be expanded by a capable buyer and produce a solid additional revenue stream. Collaborations with reviewers on social media platforms and YouTube, in particular, have launched many brands in the niche to unprecedented heights, given the popularity of timepieces on these channels.
The company’s typical customer is a male between 35 and 64 who earns between $150,000 and $400,000 annually.
Workload & Personnel
The founder dedicates 20 to 40 hours weekly to running the business. His primary tasks include:
- Assigning shipments for the day
- Attending to escalated customer support tickets
- Planning social media marketing
- Contacting suppliers regarding order statuses
- Working on and planning future releases
Only one contractor assists him and works in the capacity of customer support, sales, shipping, and social media marketing.
A new owner can potentially run the business by working only 5 to 10 hours per week, with an assistant handling all shipments and customer support.
Two agencies handle email marketing and paid online advertising, respectively.
Outlook
The founder has laid the groundwork for continued success by establishing an excellent supply chain, building an outstanding reputation, streamlining logistics, cultivating a dedicated and growing customer base, and producing strong financial performance. These factors present prospective buyers with enormous value and the opportunity to scale the company dramatically.
