Proprietary Chicken Coops & Accessories Brand with 76% YOY Profit Growth Over 8 Years
An 8-year-old eCommerce brand which markets proprietary designed chicken coops and supplementary products to families who are invested in raising backyard chickens. Their in-house designed chicken coops are made specifically only for their brand name. They have diversified their SKU line and offer supplementary products such as automatic chicken coop door openers, chicken accessories, and other related items. They have now captured the attention of families that are invested in raising their own backyard chickens in over 150 of the top metropolitan areas within the USA. They have enjoyed a steady growth, hatching a following that spans the entire nation.
OPERATIONS
Most of their business is conducted on their Shopify website, and they also operate an Etsy storefront for selling chicken-themed merchandise. They generate scale opportunities, such as adding more items to their existing products line, expanding on Amazon and Walmart, negotiating with FedEx, and changing their shipping boxes to be smaller. Management has been automated and streamlined, and the current owner only spends no more than 10 hours per week running the business. Their marketing strategy relies on paid advertising and PPC marketing plans. They also generate organic traffic through their social media accounts and blogs.
They keep up to 70% of inventory levels during their peak seasons and have a 5,000 square-foot warehouse. Every order is carefully fulfilled through expedited shipping, which then provides them with no shortage of satisfied repeat customers. They are solely responsible for the production and manufacturing of their in-house designed coops. Third-party chicken doors are also dropshipped from their third-party company at no cost to them, offsetting the cost of their PPC marketing plans.
MARKETING AND KEY METRICS
The company relies on PPC advertising to generate traffic to their website. They have been successful in attracting potential buyers who are typically interested in purchasing coops by showcasing designs and patterns on social media platforms such as Facebook and Instagram. Customers who visit their Shopify website are also upsold with third-party chicken doors during the checkout process. 14,100 subscribers to their email list, and a rising repeat order rate of 13%, this has generated up to 50 products a day from their 5,000-square-foot warehouse which ships up to 70% inventory levels during their peak seasons.
The company relies mostly on their Shopify website, but has expanded their sales channels to include PayPal, and an Etsy storefront for selling chicken-themed merchandise. Through paid advertising, social media platforms, and blogs, they have been successful in catching the eye of potential buyers in search of purchasing coops. Their email marketing campaigns and upselling during the checkout process have also contributed to their healthy sales growth.
The average order value of $1,200 has given the company a healthy 18% sales growth between 2021 and 2022. They have a repeat order rate of 13%. They receive up to 14,100 subscribers to their email list and subsequently have 19,000 unique visitors to their website monthly. Social media accounts on Facebook and Instagram have over 16,000 and 26,000 followers, respectively. Their warehouse ships up to 50 products a day.
Their typical customer is a family or individual who has recently gotten into the world of backyard chicken-keeping and is looking to find coops that are reliable enough to protect their livestock from predators, sickness, and weather conditions that might harm them. Their email list consists of over 14,100 subscribers and rising repeat order rate of 13%.
BUSINESS MODEL & RESOURCES NEEDED
Management has been streamlined and automated to enable the current owner to spend no more than 10 hours per week running the business.
THE INDUSTRY
The backyard chicken raising industry has seen a steady rise in interest over the last couple of years. This company caters to families that are interested in raising chickens in over 150 urban metropolitan areas, generating healthy sales growth. By continuing to diversify their product line, and offering supplementary products such as automatic chicken coop door openers, they have an opportunity to become the leader of their niche.
OPPORTUNITIES TO SCALE
Business expansion onto Amazon and Walmart, and new digital marketing strategies such as starting an email marketing campaign and utilizing an affiliate program to promote the products. Negotiations with FedEx and other carriers to reduce their shipping costs, and redesigning their shipping boxes to be smaller and more cost-effective could improve sales. B2B sales and marketing to wholesalers and retailers.
Asking Price: $2,615,000
Gross Income: $2,465,963
Cash Flow: $751,448
Year Established: 2015
Employees: 1
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