Website Closers® presents a Subscription Box Company that offers a curated collection of Fitness Gear, Accessories, and Nutrition to its customers on a monthly basis. The company has a high Average Subscription Timeline of 16.84 months, which is well above the industry standard for online subscription box companies.
They have been in business for over 7 years, showing that the business continues to be sticky with its customers and has was it takes to withstand the ups and downs of markets.
Subscribers receive 5 to 8 products every month, and for customers unwilling or unable to commit to a subscription, the brand also offers the option of purchasing individual fitness items separately.
The company has spent many years building a dedicated customer base for their subscription boxes, which now accounts for 65% of total sales. The rest are made up of individual, one-off sales.
They market individual products on their branded website and on Amazon, giving the buyer of this business opportunity the option to continue focusing on building the brand’s subscription box business, targeting increased D2C sales of individual products, or both. Alternatively, the buyer could scale the brand into two separate businesses: a move with strong potential given their customers’ resilience in the face of rising inflation and interest rate increases.
Here are some of the reasons why our brokers are so excited about this deal
- They operate in lucrative markets. The brand has built up a dedicated customer base in the eCommerce Fitness Vertical, making them a great pick for buyers interested in additional channels to offer their brand or brands, or those looking to break into the industry without having to build their own company up from scratch. Not only that, but the popularity of subscription-based models means that the buyer will be able to look forward to a steady source of income from this acquisition, with the brand having an Average Subscription Rate of 16.84 Months.
- Their operations are highly turnkey. Their operations are so refined that the current ownership has a workload of 20 hours per week without the need for full-time employees, with their key tasks consisting of curating the boxes for shipments, handling customer service, and launching promotions. The brand uses virtual assistants to handle email marketing and social media posts, and has the option to hire additional VAs to take over more daily tasks.
- They have strong customer demographics. Their average customer is around 35 years old with an interest in CrossFit and other intense exercises, and a high-wage earner who is happy to spend their disposable income on products they feel are a quality deal. With many of these customers keeping their subscriptions long-term, the brand’s Lifetime Customer Value sits at an impressive $900.
- They have a polished organic marketing strategy. Social media has been an effective marketing technique for this brand, helping them strengthen their
relationship with their subscribers. They have over 24,000 subscribers on Facebook and over 38,900 on Instagram, have a Facebook group that acts as a
community built around their products, and run PPC ads on Facebook to further promote their brand. They also generate organic traffic through their SEO
program, which uses top industry keywords and an informative blog on their website. These tactics have led to a rate of over 10,000 unique visitors to
their site every month.
- They have straightforward scale opportunities. One of the most effective ways that the brand can grow beyond their current scale would be improving their marketing strategy. They could utilize the roughly 40,000 subscribers in their email database with a regular promotional newsletter that features promotions, special deals, and upsells. They could also launch an SMS text messaging campaign, and partner with influencers to promote their products to an even larger potential consumer base, gaining stronger brand recognition as a result.
Company Overview
The brand launched in 2016 and has spent the years since building relationships with other brands to assemble appealing products for their monthly subscription boxes. These products are selected to provide fitness fans with everything they might need for a satisfying work, regardless of whether they’re exercising at a gym, at home, or in a class.
Their subscriptions are available in 1, 3, and 6-month plans, though many customers opt for longer periods of time, and they currently offer 50 SKUs. Though most of their SKUs are not brand products, the brand has worked with suppliers to obtain exclusive designs and colorways for certain products, cutting down on competition and improving their brand awareness.
They have an Average Order Value (AOV) of $55, and while their sales remain steady throughout the year thanks to their subscription model, their profit spikes around the holiday season as customers buy their products as gifts or to try and start the new year off right.
The brand’s orders are processed through a partnership with a sub-box fulfillment service that ships their monthly orders, with Amazon orders and individual items being handled by either Fulfillment by Amazon or by their brand partners. They maintain hundreds of excess SKUs for their online store, which are stocked in a 1,500-square-foot warehouse and managed by their Shopify account. They also include a free gift with customers’ first subscription boxes, encouraging buyers to continue their subscriptions for longer periods of time.
The brand is in an excellent position for a buyer to pick up, with a dedicated consumer base, steady recurring revenue that spikes in the 4th quarter, and strong scale opportunities that can be utilized in the right hands. The ideal buyer would be an ambitious entrepreneur eager to bring a new perspective to the brand and scale it to greater heights, using the tools that are already available to them. As their subscription rates grow, their recurring revenue will only grow stronger, fueling their possible scale opportunities in such an active industry.
