Website Closers® presents a tremendously successful pillar of quality and reliability in the niche field of Hydraulic Equipment for the Agriculture and Construction Industries. This family-owned business has turned a traditional Brick & Mortar centric business into a flourishing eCommerce brand. With nearly 800 white labeled, fully branded SKUs that do exceptionally well at an average order value of $155, all from ISO 9001 Certified Manufacturers, this company has enjoyed phenomenal 70% year over year growth while cultivating a loyal customer base that ranges from farmers and ranchers to heavy equipment operators.
The company creates value for customers by offering a channel skip via online sales, keeping prices lower than OEM and providing superior quality, customer service and warranties. Their loyal repeat customer base is rising fast and now represents 17% of overall sales. The company currently sells via 3 online platforms including their D2C Website (50%), Amazon (43%) and eBay (7%). The company routinely receives plenty of 5 Star Reviews from its consumer base, Amazon Best Seller and Choice Badges and carries a 99% positive lifetime seller rating on Amazon. So far, this company has relied on organic traffic stemming from SEO and affiliate marketing on YouTube, but it has immeasurable opportunities to scale through paid media. With a talented and experienced team in place, this company can continue to flourish under new ownership and continue its aggressive posture in this highly specialized niche.
The Hydraulics Equipment Market is a highly profitable one, providing equipment for two major industries: agriculture and construction. A proven category leader, this business earns 35%+ net margins and consistent traffic that stems largely from SEO and influencer marketing through YouTube partnerships. The company was formed in 2016 to sell hydraulic equipment online – specifically, hydraulic quick couplers, valves, and specialized hydraulic kits used in agriculture as well as the construction industry. Components are sourced from a mix of suppliers in the U.S. and several other countries, including China, Bulgaria, and Italy. Among their many SKUs, their hydraulic multiplier is made specifically for this brand, which also manufacturers its electronic control switches and valve harnesses in house. The brand, while attaining enormous profitability so far, has excellent opportunities to scale, including by expanding the model kits they offer to include all major brands, implementing paid advertising campaigns, launching social media and email marketing campaigns, and exploring options for wholesale distribution to more original equipment manufacturers. With years of experience building up its customer base, this brand offers a buyer some incredible options for increasing sales and profitability.
This brand’s sales have mostly been B2C, with the typical customer being between the ages of 30-55. This audience is made up mostly of farmers, owners of construction companies, or ranchers who use their machines on weekends. The business has earned a growing number of B2B sales as well, particularly to other resellers and smaller equipment manufacturers.
This company does particularly well on Amazon, where they have a 4.9 Stars Seller Rating, regularly earns Best Seller and Choice Badges, and most of their items offer Prime, 2 Day Shipping. The company also lists the highest number of SKUs, 792, on Amazon, compared to 715 on their own website, and 614 on eBay. The company has put a focus on selling items that have a profit margin of greater than 35-40% in spaces where there isn’t much competition.
The busiest times of the year for sales are in the spring, when farmers are getting ready for the planting season, and fall, when farmers are back in the field for their harvest. Profits also spike in the winter when farmers are getting their snow removal equipment ready. However, there are no major drops in sales due to seasonality throughout the year.
Sales are brisk, averaging 125 shipments a day from their warehouse plus 89 more per day that are Fulfilled by Amazon. Generally, the company keeps about $20,000+ worth of inventory at Amazon’s facilities, and orders are placed twice a week to domestic suppliers. They have accrued a huge email database of 12,300+ addresses, in addition to receiving 26,200+ monthly visits on their website. The vast majority of their web traffic is generated organically, mainly through SEO and keyword research, with an incredibly low ad spend of 3%. The company now has two YouTube affiliates who promote their SKUs.
This framework contains plenty of opportunity to expand the customer base through other means of marketing, including PPC advertising on Google and Facebook. The brand has not yet devoted much time to either social media marketing or email campaigns. Carrying an impressive email database, this company has tremendous ability to grow through direct marketing efforts. Similarly promising is the use of posts, both paid and organic, on Facebook and Instagram to further boost organic traffic.
The brand also has an opportunity to expand its influencer marketing efforts on YouTube, which have so far proven to be extraordinarily successful. These initiatives could be furthered by the creation of how-to video and more for YouTube, Pinterest, and TikTok. The company could also expand its model-specific kits to capitalize on the popular use of machinery brands such as Kubota, John Deere and Kioti, and establish more wholesale agreements to equipment manufacturers.
Dedicating 32 hours per week, the current owner is responsible for managing the brand’s overall strategic vision, handling finances, and overseeing employees. These tasks could be effectively minimized through the addition of a bookkeeper and VA. Their workers include a chief operating officer, an eCommerce marketing manager, an account manager, an eCommerce marketing associate, a purchasing and operations coordinator, a warehouse manager, two shipping associates, one full-time and three part-time warehouse associates, a production supervisor, and three full-time, one part-time, production associate.
This is a terrific opportunity to acquire a highly specialized, mostly proprietary, private label branded business that offers highly diversified products and channels. Easy to operate, this company has an experienced team in place to manage operations, and amazing growth potential.
This business has already done phenomenally well connecting with buyers in the highly profitable fields of agriculture and construction, which are likely to remain very lucrative markets. Despite its success to date and enormous profitability, the untapped potential for this brand remains limitless. Just a few of their immediate opportunities for increased profitability, include enhanced marketing, diversifying the product line, and pursuing more wholesale channels.
With revenues already sky high, the lucky buyer of this company can enjoy those profit margins and take some time to develop a more ambitious plan to scale.
