WebsiteClosers® presents an SBA Pre-Qualified Subscription Box Brand that has served aspiring coders and tech enthusiasts for nearly a decade. They offer a line of private-label DIY electronics and computer technology products designed for hands-on learning, allowing customers to gain tech-related skills. Their private label product line includes popular workshop kits and related items, which are available to purchase separately at an AOV of $100, or through their monthly subscription box of curated products, which are $44 each.
The brand has won over 900+ active subscribers, who are predominantly college-educated men between the ages of 25 and 55. They have a low customer churn rate, 42% net profit margins, and an LTV of $320.
Business Broker Takeaways
1. Light Marketing. The brand has required little in the way of marketing efforts to attract their dedicated customer base. Their strategy currently consists of little paid marketing, a limited amount of free marketing on Twitter/X, and occasional posts on Facebook, Reddit, and YouTube.
While simple, these efforts have proven successful enough to give their educational content over 1,000,000 views on Instructables.com. With additional marketing efforts, a buyer could likely rapidly increase their engagement and sales.
2. Modest Workload. Current ownership has a workload of 16 to 20 hours per week, with their time spent handling product design and curation, teaching, eCommerce operations, and product operations management. The company’s shipments are processed roughly once per week from their office, with an average of 30 non-subscription packages being shipped throughout the month.
On the week their monthly subscription shipments are processed, the company ships all 900 to 1,000 at once. While the brand has no employees outside of the owner, they do employ two to three contracts on a part-time basis to support production operations.
3. Unique Products. The brand maintains very close relationships with three suppliers that research and supply materials on an ongoing basis, while also regularly sourcing from a handful of domestic suppliers. These suppliers ensure quality material for their circuit boards and packaging, which are custom-designed and manufactured abroad. Their electric components and commodity modules, meanwhile, are sourced by their long-term trading partner.
Everything the company sells is a product of their brand, and they maintain several trademarks that support their distinct brand image. The company’s current product designer/curator is open to continuing their role with a buyer, and identifying other designers in the space if the new owner is interested in expanding their offerings.
Scale Opportunities
An ambitious buyer could scale this acquisition through several methods. One low-hanging fruit would be through investing in additional marketing efforts. They could invest in additional paid marketing to target a larger audience, post more actively on social media, and increase their strategic partnerships and cross-promotions with other brands. These efforts could increase their overall traffic and strengthen their reputation in the market.
The company could make their subscription boxes and products available to a larger number of customers by selling through new platforms, such as Amazon. They could also improve their offerings by releasing new workshops, which they could upsell to existing customers.
Conclusion
This brand is positioned in an expansive industry, with a loyal subscriber base that a buyer can cultivate with the right marketing strategies. Their modest workload is complemented by their low operating expenses, and as the current owner is open to continuing their responsibilities as the brand’s teacher/designer, a buyer could keep their hours low to better focus on scaling.
