Expanding Professional Salon Equipment Brand: 80% Shopify, 20% Amazon Sales Channels
B2B eCommerce Brand of Specialty Salon Equipment is an innovative online business that sells high-quality salon equipment directly to professional hair and beauty salons across the United States. With over 5 years of operation and a 43% annual growth rate, this company offers a wide range of branded SKUs and has a customer base of over 15,000. They have the opportunity to expand their product offerings and enhance their marketing strategies to solidify their position as a national salon equipment leader.
OPERATIONS
The company operates effectively with minimal time investment, requiring only 5-10 hours per week from the owner. They focus on placing orders with suppliers, coordinating logistics, and responding to customer service tickets. The business is highly automated and has contractors to handle customer service and web development. With a strong cash flow and consistent growth, this company is well-positioned for further expansion.
The company focuses on providing specialty salon equipment such as hair dryers, hair straighteners, styling chairs, and nail care equipment. There is also an opportunity to expand into consumable items such as styling products, hair care products, shears, razors, and cleaning solutions. The company coordinates logistics and works with suppliers to ensure efficient supply and delivery of products to its customers.
MARKETING AND KEY METRICS
The company utilizes various digital marketing strategies to generate leads and drive sales. Their primary lead generation tools include social media and email marketing, with a significant following on Facebook, Instagram, and Pinterest. They also utilize PPC ads on Google and Facebook to expand their customer base. Increasing investment in digital marketing campaigns and channel diversification could further boost the company’s growth.
The company currently sells through its Shopify site and Amazon, with Shopify representing 80% of sales and Amazon representing 20%. One potential growth opportunity is to expand onto other sales channels, such as Walmart.com and international Amazon storefronts. Increasing promotion of the digital storefronts through PPC ads and SEO optimization could also drive sales growth. Additionally, targeting new salons and expanding product offerings can lead to increased sales and customer retention.
Key metrics for this company include annual growth rate, customer base, average order value, seller rating, and website traffic. The company has shown a 43% annual growth rate and has expanded its customer base from 10,000 to over 15,000. With an average order value of $700 and a strong seller rating on Amazon, the company demonstrates its trustworthiness to customers. The website receives an average of 20,000+ monthly visits, indicating a solid line of traffic.
The company’s customer base consists of professional hair and beauty salons across the United States. They have expanded their customer base from 10,000 to over 15,000 in the past year alone, indicating a strong demand for their specialty salon equipment. The company also has the opportunity to offer wholesale options to larger distributors, further expanding their customer base.
BUSINESS MODEL & RESOURCES NEEDED
The company has no full-time employees but employs contractors to handle customer service and web development. This allows the owner to spend minimal time operating the business, with a focus on placing orders with suppliers and responding to customer service tickets. The highly automated nature of the business reduces the need for extensive human resources.
THE INDUSTRY
The salon industry is a vibrant and fast-growing industry, offering a range of services and products to meet the needs of customers. This company operates in the specialized niche of providing salon equipment to professional hair and beauty salons. The industry is characterized by constant innovation, evolving trends, and a focus on delivering high-quality services and products to customers. Examples of other companies in this industry include salon equipment manufacturers, beauty product distributors, and hair care brands.
OPPORTUNITIES TO SCALE
This online business has significant scale opportunities. They can expand their product offerings to include more consumable items and maintenance/care products. Diversifying sales channels and expanding into international markets can also drive growth. Additionally, the company can focus on further optimizing their digital marketing strategies to attract new customers and increase conversions. An example of scale opportunity is adding new SKUs to their existing customer base and expanding into international markets by leveraging Amazon’s platforms in Canada, the European Union, Mexico, and Australia.
Asking Price: $5,200,000
Gross Income: $3,225,205
Cash Flow: $1,026,986
Year Established: 2016
Employees: 1
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