The Target is a DTC & B2B Totally Turn-Key, Rapidly Growing, eCommerce Hybrid Retailer in the Home Improvement space. The business sells a massive array of top-brand names across nearly every possible vertical in the Home Improvement Products and Building Materials segments, all centered around energy efficiency. The business has a diversified sales mix across its website, call center (phone sales), Amazon FBM and Amazon FBA platforms. The business offers over 16,000 SKUs including HVAC equipment/parts, building materials, foam insulation, air filters, bathroom fans, humidifiers, digital home thermostats, industrial vacuums, water heaters and many other related products. The majority of orders are processed through a dedicated 2,400 sq. ft. warehouse, ensuring rapid, quality-assured order handling with minimal overhead; the business also dropships products through its many dropship vendor relationships.
Started in 2009, the business has nearly tripled sales in the past 2 years and features a decade’s worth of streamlined infrastructure, a highly polished eCommerce website, a tight headcount of nine employees (including a General Manager) that manage and operate the business from end to end and a technical inside sales team. Reporting for this business is top-notch – ownership receives daily performance updates from management and a professional reporting package of the financials on a monthly basis.
With 17,000+ customers, DTC sales have historically driven sales growth, but B2B sales represent a major scale opportunity – over 30% of sales are from existing customers and the business offers a program specific to contractor customers (HVAC, plumbing, electrical, general contractors, weatherization specialists, etc.). With AOV in the $300-$400 range massive potential exists to enter the wholesale or account sales markets due to the business’ clear value proposition and powerful buying position with top suppliers and manufacturers in the space.
Nearly every transaction is paid via credit card – payables are able to fund growth due to the business’ negative working capital business model. This is a truly one of a kind, fully staffed and built-out turnkey, automated business that has the infrastructure in place to scale 3-4x more volume.
