Website Closers® presents a company that imports Wood and Metal Art pieces, and wholesales to many different retailers throughout the country … mainly furniture stores, gift shops, souvenir stores, and surf shops.
Products are imported from Indonesia, and the procedure took many years to develop, organize, and refine. The company now has over 50 factories and suppliers that produce hundreds of items for it. The team in Indonesia is honest and strong, and the manager there is very knowledgeable and has many years of experience in the business. He takes all the orders sent and distributes them to all suppliers, handling deposits and other administrative tasks. For instance, he works with the business’s cargo company regarding consolidation, making payments, and overseeing the loading of containers and ocean freight.
Almost all the wood and metal items are made specifically for the brand, with supplier exclusivity agreements in place. Top-selling products are nautical and tiki-related and range from signage to carvings, and art, amongst other items.
The business’s most substantial customer base is in Florida and intercoastal areas; many wholesale customers are based east of the Mississippi. Online D2C sales are made throughout the continental USA.
Listing and relisting items on the internet channels and product photography Packing orders This business is capable of doing at least 50 to 100 percent or more within the next two years with sufficient capital and effective management. The company does not advertise its website or use social media. As a result, it is perfectly reasonable to project that it can easily accomplish tremendous scalability with eCommerce and digital marketing proficiency.
Additionally, wholesale trade shows have shown healthy profits in the past. There are many tradeshows each year and each previously produced $30,000 to $50,000 in revenue. The business stopped attending them since the pandemic struck, and the owner no longer has any desire to continue with them. The company also had a salesman on the road averaging weekly sales of $4,000 to $6,000. Clearly, with some efforts in digital marketing, social media, email campaigns, and reigniting trade show appearances, the company can immediately increase profits with little effort.
The owners primarily spend their time ordering containers of inventory and tracking them, working with incoming wholesale customers in the warehouse, creating and developing new items, and online orders and packing.
Two additional employees work for the business. These roles include:
- Listing and relisting items on the internet channels and product photography
- Packing orders
As successful as the business is, scale opportunities are abundant. A new owner has excellent opportunities both on and off Amazon for growth. Due to the lack of advertising knowledge of the owners, it stands to reason that this brand can be scaled drastically with proper marketing on the right channels. Additionally, an easy-to-navigate and user-friendly Shopify-built website could quickly be developed and provide an excellent D2C revenue stream. Therefore, it presents a huge area for growth and the opportunity for a new owner to increase margins while driving new customers to the website.
An owner with Amazon expertise could quickly optimize listings, create A+ content, implement effective PPC advertising, and sell products FBA. The door then opens for an immense revenue increase through that channel alone. Outsourcing the Amazon storefront to an experienced agency would be an obvious step for somebody without the expertise or desire to handle it themselves. The brand would undoubtedly see an enormous improvement in total advertising cost of sales, a boost in sales, and the benefits of marketing expertise that the current owners possess. Moreover, this business can quickly sell into additional lucrative markets, such as the U.K, Europe, Australia, Canada, and other market segments, expanding the customer base by millions.
There is also immense opportunity for a new owner to scale the operation with mass retail. The brand has 400 wholesale clients but has not ventured into big box retailers or prominent chains. However, a focused campaign targeting these stores and possibly hiring reps could create a massive influx on the channel. A buyer with an established sales network can take this company to new heights.
Tapping into digital advertising beyond Amazon is an obvious next step, and affiliate marketing and added focus to secondary sales channels should be implemented. This brand’s niche lends itself extraordinarily well to influencer marketing on social media, particularly Instagram and TikTok. They should immediately activate social media accounts and look to influencers and collaborations to build more awareness and loyalty. This will drive traffic to their website, once set up in a user-friendly manner, and propel sales significantly. In addition, a strong email campaign should be created.
Furthermore, there is plenty of room to systemize this business and streamline operations with modern technology while minimizing the workload to focus on scaling the business. With some capital injection and new blood, the company could increase profits exponentially.
