Website Closers® presents a dynamic, high-growth Manufacturing and Wholesaling Business for Sale that offers its own brand of Dessert-Themed Candles, like luscious Sundaes and creamy Latte Desserts. The Company uses B2B eCommerce strategies to wholesale the product catalog to over 50 prominent customers in the US. Sales soared by 340% in 2023, and negotiations are in place with major retailers with over 1,200 combined locations in the US.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a buyer looking to get into the niche. We are excited about this business for three important reasons:
- Product Appeal: The range, comprising over 70 SKUs, is sold at retail prices between $10 and $20 and attracts customers from children to seniors. Although marketing has yet to be implemented, the candles went viral on social media, gaining nearly 5 million views and tens of thousands of likes and interactions. This demonstrates the enormous opportunity of opening a D2C arm and introducing an additional and considerable revenue stream.
- In-House Manufacturing: The company produces all candles at its factory in Turkey. The process is highly automated and streamlined, capable of producing up to 5,000 items daily. Supplementary lines can be added with minimal effort to increase output, and a buyer has the option to acquire the factory or purchase from it on favorable payment terms.
- Customer Base: The company boasts over 50 large customers and achieves a $30,000 Average Order Value and an exceptional 100% Repeat Purchase Rate.
Additional Value Propositions
The candles are produced using high-quality, all-natural ingredients from around the globe. They appeal to the ever-growing eco-conscious consumer base, and the company has strong credentials in social responsibility, supporting job creation in developing communities.
Unlike others in the market, the products have a standout appearance and garner robust sales throughout the year since management has astutely divided the ranges into everyday essentials and themed candles for special occasions such as Valentine’s Day, Mother’s Day, Christmas, and Halloween.
Given the in-house supply chain, all products are maintained in stock with short lead times. This contributes to optimal inventory management, consistent fulfillment, and profitability.
No SKUs are dominant, with strong demand across the board. The everyday range ensures consistent revenue, while the seasonal collections assist in obtaining tremendous revenue during peak gift-giving occasions.
Strategic Expansion
Sales expanded rapidly, and rather than turn down orders, the owner grasped all opportunities by shrewdly utilizing PO and Invoice Factoring to keep up with demand without depleting cash flow.
By doing so, the business grew revenue from $600,000 in 2022 to over $2.6 million in 2023, increasing the bottom line by $1.2 million. Projections indicate continued expansion with enormous prospects under negotiation.
A new owner with sufficient capital can avoid this route and boost margins further if desired or maintain the status quo.
Typically, $100,000 of inventory is maintained, and between 2 and 3 shipments are dispatched weekly from the company’s warehouse.
Personnel
The founder handles most operations, from supply chain management to product creation and sales. He is assisted by:
- A full-time warehouse and operations manager
- A part-time sales manager
- Independent reps that present products to retailers
Growth Prospects
The owner has identified several avenues that can be explored to potentially boost the top and bottom lines dramatically.
Introducing new sales channels beyond wholesale is low-hanging fruit. A new owner can introduce D2C sales through a website and Amazon, where their products will likely witness enormous appeal. Implementing a comprehensive marketing strategy, including social media and search engine advertising, email campaigns, and influencer collaborations, could yield vast returns.
A Kiosk program was introduced in 2023 and demonstrated success in a mall. Expanding efforts to include many more high-traffic malls is worth exploring, as it can assist in obtaining additional lucrative B2B clients.
Outlook
The financials, growth trajectory, and product demand present a compelling acquisition opportunity for an ambitious buyer. The US is a significant player in this evergreen niche, and the addressable market is enormous.
Under capable management, the company’s potential is limitless, and the groundwork has been laid for a buyer to thrive.
