Website Closers® presents a dynamic eCommerce Business in the Medical Equipment & Medical Supply space. They offer premium items, many of which come with exclusive supply agreements, at affordable prices and provide a level of customer service that is unparalleled
Management is constantly looking for quality, well-established products to add to its catalog that have a manufacturer’s warranty, and since they have become a go-to resource for medical products, adding new products is an easy method of increasing sales… especially as sales channels are expanded in the future. The lead time for most products from sourcing to website is just 7 to 10 business days.
Given their obsession with premium goods, it’s no coincidence that most manufacturers are based in the US, UK, and France. No products are directly sourced from China, which has also allowed the business to avoid global supply chain issues that many competitors have faced for some time. 30,000 to 40,000 medical products are sold annually, and top-selling products are diverse, covering a broad spectrum and reducing any risk associated with concentration.
Although the business enjoys year-round sales, there has consistently been a generous spike over the November and December holiday season as consumers rush to receive orders before Christmas. This upswing often bleeds back into October, resulting in a booming fourth quarter. Most customers are end users, while many others are professionals needing a range of products for their businesses or to perform their job. This, combined with the company’s tenure, exceptional service, and quality products, results in a solid repeat customer rate and organic, word-of-mouth marketing among professionals.
A unique value proposition that we like about this company is that it doesn’t have a concern with receivables. No terms – all cash up front. Typically, orders for products are made once cash is in hand for the orders. Finances are run with the high-limit company credit card, which also provided 1-2% cash back for a buyer.
Aside from the company’s DTC website, sales are also made on eBay, Amazon, and Walmart. Roughly 75% of inventory is based at Amazon FBA facilities, and many SKUs are Dropshipped directly to Amazon warehouses. The business has adapted over time and embraced the advent of eCommerce. When they began 24 years ago, online sales were virtually non-existent, but now drive revenue. The marriage of old-school business ethics with modern technology is one of the aspects that set them apart from the rest and allowed them to thrive in this new economy.
The owner-operator works around 30 hours weekly in the capacity of chief executive officer. Aside from him, there are just a few hourly employees that handle the rest of the daily workload, including customer service, IT, invoicing, shipping, and payroll. Incredibly, based on revenue, each employee is indirectly responsible for over $1 million in sales yearly. It goes without saying that this is a tightly run ship, but also incredibly simple to manage.
The business receives, on average, 50-75 customer contacts daily, and all queries are handled over the phone or via email. Nothing is automated, as management prides itself on allowing all customers to talk expediently with a human being.
50 to 100 packages are shipped daily from the company’s warehouse, including international deliveries and those to Amazon’s facilities. Well under $100,000 of inventory is maintained in the warehouse at any given time. One deal with a manufacturer of one of the best-selling products is based on consignment. Their stock is stored with the company but only paid for when sold.
As healthy and consistent as the financials are, there is plenty of room for expansion. Currently, little advertising is done, and no agencies, affiliates, or marketing consultants are used. Subsequently, immense potential exists to reach a vast and fresh audience. This could be done by implementing paid advertising, a robust email campaign, an aggressive social media strategy, SEO, and attending trade shows and expos, amongst other methods.
A new owner could outsource any or all these tasks with an excellent return on investment and little sweat equity.
Enticingly for a prospective buyer, the company is in the process of taking over a highly successful operation in the tattoo removal ointment niche. The products have sold successfully in the past, and this deal is another example of excellent relationships management has cultivated over time.
This offering is a rare opportunity to acquire a tenured and successful business with a trusted and known name in its niche. There is endless opportunity to scale the operation or to rest assured, knowing that recurring income and a solid return on investment are all but inevitable.
