This unique opportunity is an eCommerce Brand in the Hospitality Supply Vertical, selling products B2B to Hotels, Hotel Management Companies and Assisted Living Facilities. The products they sell are focused on Encasements for Mattresses, Box Springs, and Pillows with other offerings in the Bedding Supplies, Hotel Appliances, Maintenance Supplies, and other categories serving Hotel Operators. Because all products are drop shipped directly from the manufacturer, there is exceptionally low overhead in this business – no need to use cash flow to invest in inventory, and no need for a warehouse or warehouse employees.
The company has a $1,200 Average Order Value, driving traffic and conversions from its modern website where it offers a complete line of hospitality supplies. The company has several opportunities immediately available for expanding its current operation, especially with adding currently available products from the current manufacturer. And with no inventory as a cash flow constraint, this can be a lucrative investment for the right buyer right out of the gate.
This business has a solid supply chain, with the manufacturer providing a 10 year warranty; they also handle replacement and all shipping issues – a huge pain point for many eCommerce Retailers. This is a well-established business that has shown consistent year over year growth and a steady repeat customer base of 20-25%. The business has historically been largely hands off, but with additional time spent on growing the business, there would be a nice return on that time investment. And since samples and products do not need to be ordered due to the drop ship nature of the company, it literally costs zero dollars to add new products to the market.
Marketing hasn’t been executed in a consistent way, leaving virtually ALL online marketing channels and call centers as available options for future growth. Implementing a comprehensive online marketing program and utilizing the 8000+ email database to launch sales funnels for high volume SKU’s and expand products lines will generate near instant revenue. International expansion via Amazon and eBay, as well as brand building through trademark recognition and private label opportunities are all also low hanging fruit that new owners can just step in and start pushing. For this business to be successful and grow it simply needs time and follow up and it can double quickly.
There is a huge opportunity here, as the hospitality industry is set for a massive reboot where attention to detail and cleanliness become paramount. Covid-19 will soon allow the hospitality industry to return to normal, however, it’s certain that new measures for hygiene will be a priority. This business is vital to that process, and will undoubtedly see huge need in the coming year or two.
Someone with a little time and a lot of vision can turn this into a ‘sweet dream’!
