WebsiteClosers® presents an eCommerce Brand that has painted a promising position for themselves among the religious community. Their branded products primarily consist of their paint-by-numbers kits, which are produced by bringing thematically appropriate pictures to their supplier, who then converts them to the paint-by-numbers format.
Their 79 SKUs also include other creative outlets such as diamond painting kits, kids’ sticker books, and other associated accessories, which are great for customers hoping to keep their children and themselves engaged during the 2 annual general conferences of the church and throughout their everyday lives. The brand has an Average Order Value (AOV) of $42 and a Repeat Customer Rate of 16.83%.
Business Broker Takeaways
1. Dedicated Following. By focusing on a faith-based retail program, the brand has been able to tap into a dedicated and hungry audience that is happy to explore their products. Though their marketing plan is simple, consisting of paid Facebook ads, social media posts, and email marketing to their 11,000 subscribers, they see an average monthly visitor rate of 13,950 and a decent repeat customer rate. The brand enjoys a steady revenue history and 30% Net Profit Margins.
The brand’s demographic has also given them 3 peak seasons: March and September, due to general conferences, and the holiday season, when customers are more likely to buy thematic gifts for themselves and their loved ones.
2. Minimal Workload. Management is divided between 3 current owners. One spends 1 to 2 hours per week on marketing, another spends an hour on business administration and product inventory ordering, and the last spends 4 to 5 hours per week on order fulfillment and customer service. Several of these tasks could be outsourced if a buyer prefers, further reducing an already modest workload.
The brand also employs a part-time contractor who helps with email and social media content.
3. Straightforward Stock Model. The brand’s products are handled through a 100% stock model and shipped from their 8 x 40 storage container. During their off seasons, they typically ship about 3 to 5 orders per day, with this number skyrocketing to anywhere between 50 and 150 during their peak seasons. They currently have around 7,000 units in stock, which is common when the brand is heading into one of the busier seasons. The brand place new inventory orders about twice every year and uses bubble envelopes for most shipments. For the larger orders, they have some small boxes.
Scale Opportunities
A buyer will find they have many opportunities with which they can paint a bright future for the business. As their production model involves sending pictures to their supplier to turn into paint-by-number kits, they have a seemingly limitless variety of products to release for the religious market. The company could also explore digital products, as well as puzzles and other creative activities that would complement their existing SKU roster.
These products can be used to target both the child and adult markets, as well as the Christian demographic given their religious theming. A buyer can market to these groups with additional advertising channels like YouTube, an SEO plan on their site, and PPC on other key websites. The brand could also make other improvements to their website, optimizing and polishing it for a better customer experience.
The company can make their products available to a wider audience by expanding their sales channels. Amazon would make for a highly promising storefront given the site’s popularity and its many benefits, such as FBA and Amazon PPC potential. The brand has also landed their first retail establishment, BYU store, and could generate additional retail profit by working with Christian bookstores.
Conclusion
This brand has seen strong and steady growth throughout the last few years by appealing to an enthusiastic and highly committed audience. They have the potential to quickly expand their consumer base with the right marketing efforts. They can also strengthen their appeal among new and old customers alike by releasing additional product types that work well with their existing roster.
A buyer requires no special skills to manage the business, outside of an understanding of the target audience’s culture and what they look for and expect from the brand’s product line.
