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B2B Manufacturer & Wholesale Distributor of Dessert-Themed Candles | Massive YOY Growth | 43% Net Margins | 100% Repeat Order Rate | $30,000 AOV

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Website Closers® presents a unique and highly profitable B2B manufacturer and wholesale brand of dessert-themed candles.

Value Propositions

As business brokers, we see several distinguishing factors that elevate this brand’s products above its competitors.

  • In house manufacturing provides complete control over the supply chain.
  • There’s a social responsibility component since purchasing these items helps foster job creation in underprivileged communities.
  • Every candle is meticulously formulated with 100% natural soy wax sourced from Sweden and the highest quality ingredients from around the world.
  • Their distinctive, food-like appearance and calming fragrances captivate and delight individuals of all ages, making them ideal for everyday use and gift-giving occasions.

The products are sold at competitive retail prices ranging from $9.99 to $19.99, which allows the brand to target customers from 12 to 80 years old. Despite performing no marketing, the products went viral on TikTok, generating 4.5 million views and 65,000 likes. The younger generation is particularly attracted to them due to their sustainable and natural ingredients.

Manufacturing & Inventory

This US entity produces all products in Turkey. Management has implemented an automated process that facilitates the production of between 3,000 and 5,000 candles daily in a single manufacturing line. A second or third line can easily be added to increase output when demand requires it. A buyer has the option to acquire the factory; however, the existing owners are open to an arrangement to continue manufacturing for the buyer at favorable rates.

Unsurprisingly, all products are stocked or made to order, with lead times typically between 30 and 60 days. The Average Order Value across 51 current customers is $30,000, and the brand boasts a 100% Repeat Purchase Rate.

Since the business has proliferated, there have been additional working capital needs for the growth of the business. Management utilizes PO and Invoice factoring to keep up with demand, which reduces cash flow constraints. Factoring is not necessary and a new buyer could easily achieve even higher margins if they are in a position to fund the growth of the inventory needs internally. But with factoring, the company has been able to achieve 340% year-over-year growth, contributing an additional $1.2 million to the bottom line in the past year. Certainly this model works and can be continued depending on the needs of a new buyer.

Generally, $100,000 worth of inventory is maintained, and between 2 and 3 shipments are dispatched from the company’s 2,500-square-foot warehouse weekly.

No SKUs or ranges dominate sales, resulting in steady revenue throughout the year. While the everyday collection is popular, seasonal collections produce several peaks on occasions such as Valentine’s Day, Mother’s Day, Halloween, and Christmas.

Scale Opportunities

Various opportunities are available to achieve continued dramatic growth and tap into additional revenue streams.

The company can diversify its sales channels beyond wholesale by establishing a directto-consumer arm, utilizing eCommerce platforms like Amazon, and a dedicated website. The product demand is evident, and implementing these channels will facilitate reaching a vast new audience. An aggressive digital marketing strategy, including social media advertising and email campaigns, will enhance brand visibility and drive sales. Partnerships with affiliates and influencers can further boost brand awareness and online traffic.

Expanding the successful Kiosk program to more high-traffic malls in the US, following initial success with one in 2023, is an enticing prospect. Maintaining strong wholesale partnerships is crucial, as they are the current revenue cornerstone. Prioritizing strategic alliances with them will solidify market position and ensure long-term success in the competitive industry.

Workforce

The owner manages most aspects of the business, from supply management and product creation to marketing and sales.

Employees include a full-time staff member who handles warehousing and operations and a part-time sales manager.

The brand also works with independent sales reps to present products to retailers.

Summary

This company demonstrates exceptional financial performance and growth and has tremendous potential for further expansion under ambitious new ownership. And since North America is the dominant market player in candles globally, capturing over 33% of total revenue there is a tremendous addressable market still left untapped. Scented candles are important to homeowners, particularly among millennials in the US, driven by a growing inclination towards self-care. Millennials prioritize mental well-being and distinctive designs and are willing to invest in premium products to enhance their living spaces. This is expected to continue, and thus, the future is bright for this already highly successful venture.

This Company is Represented by:

WebsiteClosers.com

Technology, Internet & eCommerce Business Brokers

WC 3295

Asking Price
$ 5,600,000
Cash Flow
$ 1,165,331
Gross Income
$ 2,690,805
Year Established
2022
Employees
3

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