High-Performing Heat Transfer Apparel Business with 3 Divisions, Ecommerce, Wholesale, and Graphic Design, and Dedicated Team in Place with High AOV and Repeat Customer Rates
This online business includes three divisions eCommerce, Wholesale and Graphic Design. The primary business sells heat transfer designs direct to consumers, the B2B wholesale business is a heat transfer printer, and the graphic design agency provides digital design services. With a high Average Order Value (AOV) and repeat customer rates, this business has a sophisticated process and system in place. The Chinese factory manufactures unique appliques, and all fulfillment is executed from the New London, CT warehouse.
OPERATIONS
The primary business sources products from two Chinese factories that specialize in heat transfers for the company. They only create heat transfers for this organization and are prohibited from selling the artwork to anyone else. All fulfillment is done in-house, with sales being constant throughout the year. The agency provides several products and services, such as vectorizing, color separation, sketch digitalization, and original logo creation.
The primary business sources products from two Chinese factories. They have exclusive rights over the factories’ heat transfer and applique production. It handles all product fulfillment in-house, while the B2B wholesale business is 100% drop-ship, and the agency does not maintain inventory.
MARKETING AND KEY METRICS
The primary business uses various methods for lead generation. Social media marketing mostly drives sales, and different campaigns are based on upcoming events such as Black Friday, Christmas, and St. Patrick’s Day. The broad strategy encompasses standard ads, testimonial, and videos to increase engagement. Additional marketing involves pay-per-click (PPC) advertising (search, retargeting, and feed campaigns).
The broad strategy that the primary business applies in online marketing results in a 3 to 4 return on ad spend (ROAS). Due to its growing success in eCommerce and wholesale sales, there are massive opportunities to scale.
The typical customer is a US-based individual who spends on average $100 per order and returns regularly. The B2B wholesale customer is primarily male, with retail stores spending between $10,000 and $15,000 annually. The agency’s customers are male screen printers who purchase unlimited designs for $499 per month.
The typical customer is an individual or retail store in the US-based, split equally between men and women, who spends an average of $100 per order for heat transfer prints. B2B wholesale retail stores with an annual spending between $10,000 and $15,000 per calendar year primarily consist of men. Design agency customers are primarily male screen printers using various services provided.
BUSINESS MODEL & RESOURCES NEEDED
The business consists of 13 dedicated team members who run daily operations. The owner himself works only 8 to 10 hours per week to liaise with his team. The employees ensure operations run like clockwork, while the business owner strategizes vision and growth.
THE INDUSTRY
The heat transfer market is thriving and gradually replacing the traditional screen printing industry. Heat Transfers are highly preferred due to economic advantages. This business provides custom prints that can be created and applied to almost anything, from tablecloths to T-shirts. The popularity of the heat transfer market is mainly driven by the fact that designs can be bought separately and only printed when an order comes in.
OPPORTUNITIES TO SCALE
Growing exponentially in eCommerce and wholesale, potential options for scaling are as follows: expansion of wholesale reach to encompass other niches, continued and focused expansion of the eCommerce business domestically and internationally, and utilization of a design agency for multiple print-on-demand e-commerce businesses.
Asking Price: $700,000
Gross Income: $594,811
Cash Flow: $156,353
Year Established: 2020
Employees: 13
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