Website Closers® presents a lucrative business opportunity in the firearms vertical. This very profitable business model provides firearms parts for individuals who want to assemble a weapon on their own – operating heavily with the “80% complete” space. This is a rapidly growing industry, giving customers all the parts needed for building their own pistol without dealing with the background checks or government fees required on a regular firearm. That’s helped to create high demand for these parts kits, and in the span of nearly 10 years, the company is continuing to grow as the interest and acquisition of firearms continues to grow.
As these tool kits become increasingly desirable to gun owners, collectors, hunters, and DIY weapon builders groups, sales have skyrocketed in recent years. The ability to legally build a gun without any necessary paperwork has given customers a strong sense of personal freedom that has been as much of a factor in the company’s success as the quality of the took kits and individual parts they offer.
The company’s sales so far may be just the tip of the iceberg for an even larger surge. In the past few years, revenues have been increasing solidly. Sales were 10 times higher in 2020 compared to 2019, while the company experienced a massive 551% increase in sales in the first half of 2021 compared to the same period in 2020. While gun sales remain high year-round, there are often major spikes in sales when individuals become concerned about possible new federal regulations, including when a new presidential administration is coming in.
This brand, which has a high average order value of $280, is taking full advantage of what has become a scorching hot market for these parts. The company has become the largest retailer of Pre Cursor receivers and parts kits, with a tremendously large and loyal customer base. Their email database includes 116,000+ subscribers, while their average monthly visitor KPI exceeds 321,000+. This brand has developed a trusted reputation within the community of gun owners, and as their customer base and sales continue to rise, a buyer has an excellent opportunity to build on that success and scale to even greater heights.
The company was launched to market various parts that can be used to build a pistol or rifle, with the Glock Compatible Lower Parts Kit becoming their top seller over the past 8 years, representing 20% of all sales. The company has a patented receiver for DIY home build enthusiasts that became their first branded product. The company has developed its product line over time and now offer 113 SKUs. Sales tend to be particularly good between September and May, with somewhat slower periods (at times) during the summer months. Their customer demographics tend to be mostly men between the ages of 25 and 50, who vary widely when it comes to income levels and other factors.
Sales have been so strong, in fact, that the company now ships 500+ products a day. At their 4,000 square foot storage facility, the company stocks up to $3 million in inventory, depending on the season. New supply orders are placed every 2-4 weeks. Sales are conducted entirely on the company’s eCommerce website, and the company has relied on a variety of proven digital marketing tactics to bring those customers onboard. The company has a successful SEO program that relies on both keywords in product descriptions and the use of an educational and informative blog on their website. The blog focuses on how to build a DIY weapon and on the political and legislative issues around gun ownership.
With their large and growing email database, the brand sends out two emails a month keeping their subscribers informed about what’s new at the company. Social media also plays an important role in their success. The brand has 10,000+ followers on its Instagram account which has been very efficient in boosting organic traffic. They employ an active affiliates marketing campaign on YouTube that attracts different DIY home builder groups, and their social media posts are designed to be relevant to the participants within these groups.
There are ways to further enhance their social media and email marketing campaigns in the future to drive more traffic to the website, including the use of video marketing on sites such as TikTok and YouTube. The company could scale very quickly by diversifying their existing SKUs. That could include increasing the number of AR-15 parts they make available, which could potentially double the company’s revenue, and expanding new receiver designs. The company now has three highly desirable designs pending the approval process.
They could add new accessories, such as magazines, custom options for holsters, and red dot sights. Doing all of this would enable the company to use email marketing to upsell these new products to their existing customers.
Because the business is maintained so efficiently, the current owner now spends just 15-20 hours each week operating it. Those tasks include maintaining solid relationships with suppliers, researching new products, and scheduling trade shows.
An experienced team is in place to manage day to day operations. The owner now employs 3 full time staff members: an office manager, warehouse manager and production manager. There are 10 part-time employees, including two customer service representatives, four warehouse workers, and two assemblers. The company also employs salespeople who attend trade shows to promote the business and manage wholesale accounts.
This expert team now manages up to 33 customer service contacts per day, which can come in by phone, email, text and social media. That team is well versed on how to keep the inventory flowing and to provide a buyer with a guarantee that their recurring revenues will remain steady.
This is a terrific opportunity to own a business that has succeeded in one of the most durable and evergreen industries. Since the nation’s founding, the right to own a handgun or firearm has been paramount, and gun sales virtually never dip. This business has developed a superb niche by providing the tools needed for those who are fed up with the paperwork and regulations that come with purchasing a newly made weapon and instead are ready to build their own gun at their home. This is a very fast-growing market, and a perfectly legal one, and this business has a terrific reputation with those buyers and with builders groups who are giving them excellent word of mouth advertising.
This is a business with amazing growth potential. Simply expanding the product line could literally double profits in the short run. This business offers unimaginable opportunities to any lucky buyer: a steady revenue, an expanding customer base, loyal buyers, and the opportunity for massive growth in the future.
This eCommerce Business is Represented by:
A Tech & Internet M&A Firm
Listing ID: WC2466