Home » Businesses » eCommerce Brand in the Performance Auto Modification Vertical | 6 Years in Business | $998 AOV | Robust YOY Growth | 50% Repeat Order Rate
eCommerce Brand in the Performance Auto Modification Vertical | 6 Years in Business | $998 AOV | Robust YOY Growth | 50% Repeat Order Rate
Website Closers® presents a unique CPG Brand in the performance auto modification space. It has cultivated a dedicated following of car enthusiasts willing to spend considerably on their pride and joy, as the vehicle goes far beyond “transportation” for these owners.
The brand specializes in Cadillac V series cars, which are world-renowned high-performance vehicles that compete head-on with Mercedes, BMW, and Audi. Under the company brand, they offer engine and body modification products. They also stock turbochargers and tuners by well-known industry names. In addition, the team provides installations and services that have assisted in building excellent customer relationships.
These customers are dedicated and insatiable. Auto modifications are never-ending projects that can almost always be upgraded, refined, or altered. The founder of this company understands that intimately. He is a performance car enthusiast himself and excellently plays to the needs of others.
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:
Dedicated Audience: The willingness to spend on the pride of ownership and performance can be unmistakably witnessed in the Average Order Value of $998 and the 50% Repeat Purchase Rate. Car enthusiasts will give up many other pleasures in life to invest in their vehicles, and this brand has captured a fiercely loyal audience that returns time and time again. The passionate and glowing online reviews corroborate this appetite and their connection with the brand.
Niche Customer Base: Cadillac V-series cars are expensive, meaning most owners have ample discretionary funds available. The customer base consists nearly entirely of males between 21 and 75 who desire to modify and improve the performance of their cars. The largest concentration is in the 35 to 55 range, able and ready to spend. Given that the company focuses exclusively on Cadillac, they gain credibility and trust quickly in the niche.
High-growth: The business has exhibited tremendous top and bottom-line growth. Seller Discretionary Earnings jumped from $175,000 in 2022 to over $440,000 in 2023, with 2024 projections indicating $546,000. Remarkably, this has been achieved without paid advertising of any kind. The only marketing efforts are modest organic social media posts. This organic growth is indicative of product and service quality, a growing and satisfied audience, and an auspicious future.
Inventory & Logistics
More than 200+ products are stocked, and a daily fill rate of 99% is maintained. An average inventory of $400,000 is kept on hand, and products are reordered daily. The owner has negotiated exclusivity of certain items and favorable terms through strong supplier relationships, which typically vary between Net 30 and credit card payments.
Between five and ten shipments are made daily from the company’s 1,000-square-foot warehouse.
Team & Workload
The owner works full-time, primarily on the following tasks:
Guiding, directing, and managing the business
Handling in-house dynamometer and remote tuning
Maintaining inventory
Responding to most emails
Three additional employees also work full-time in the capacities of operations, service, and social media coordinators.
Scale Opportunities
The seller has identified various avenues a well-funded buyer can pursue to boost sales and profitability and enjoy a healthy return on investment.
Continuing to grow the carbon fiber product line is low-hanging fruit for which the company has built-in demand and excellent profit margins. Additionally, developing CT5-V downpipes and Blackwing header systems has been identified as a high-demand area that can quickly capture the market of existing and new customers.
Expanding into other vehicle platforms, depending on the knowledge of the new business owner, is an enticing prospect for reaching a vastly greater audience. The business can offer the same or similar performance upgrades as the Cadillac V series.
Developing and implementing a comprehensive digital marketing strategy is perhaps the quickest and most cost-effective method to boost sales. Video content and paid advertising on social media are especially effective in the car niche. At the same time, Google Ads would likely boost website traffic dramatically. Implementing email campaigns is an untapped opportunity, especially considering the dedicated customer base and strong repeat purchase rate. Regularly enticing these customers with new products, services, and offers could radically increase their lifetime value and regularity of business. Developing SEO specifically catered to the core product range is also a viable method that can yield results for years to come after an initial investment.
An ideal buyer would understand late-model GM vehicle performance tuning via HP Tuners if they desire to continue offering these services. The seller is open to assisting and training a buyer in this should they choose.
