Granite Countertop Ecommerce Business with 85% Repeat Customer Rate
This is an online B2B eCommerce business that has been involved in hundreds of projects throughout the United States in the multi-family housing and hospitality building sectors. They provide various kinds of countertops, tub decks, and shower seats and sinks, components that play a major role in the look, aesthetics, and overall appeal of new multi-family units and hotels. The company has an outstanding 85% repeat customer rate, which is primarily due to their impressive quality of work and excellent customer service.
OPERATIONS
This online business holds no inventory, and all its services are online. Once a contract is signed, the company designs, procures material, delivers it to the site, and installs it. The average contract value lasts 18 months, and the business has a sales contract value of around $380,000, on average. The company operates with two branded websites, one that focuses on their stone countertops and one that provides a closer look at their collection of 10 different types of quartz colors.
This online business holds no inventory; all their facilities and services are online. Once a contract is signed, the company designs, procures material like granite, marble and quartz, delivers it to the site in any corner of the country, and installs it on site. Using regional warehousing, the company could improve delivery times and reduce freight expense, which could help in scaling the business.
MARKETING AND KEY METRICS
The company’s primary source of new clients is through word-of-mouth referrals from their satisfied customers and has never developed a complete digital marketing strategy. The company has an underutilized Facebook page, and exploring social media channels such as Instagram, Pinterest, TikTok, and YouTube with educational and informative blog posts on their websites could help expand their customer base. The company already has an email database of 200 subscribers and could start using that for regular email marketing.
This company remains well-positioned for national expansion. They have established relationships with general contractors and developers, primarily in Colorado. The long-term value of each customer is much higher than the cost of the initial contract due to the company’s excellent quality and customer service. A digital marketing campaign can support their expansion plans, running PPC ads on Google and an educational blog on their website, contributing towards expanding their customer base.
The company’s key metric is its high 85% repeat customer rate, which comes from providing excellent quality of work and customer service. The average contract value lasts 18 months, and the business has a sales contract value of around $380,000, on average.
The company has become a preferred supplier of stone countertops, tub decks, and shower seats and sinks to hundreds of general contractors and developers nationwide; these two industries form the largest customer base for the business.
BUSINESS MODEL & RESOURCES NEEDED
This is a full-time business, one that employs five full-time workers, including an estimator, production manager, pre-installation manager, and two field installation managers. Eight subcontractors are also used.
THE INDUSTRY
This business operates in the construction sector, specifically within the multi-family housing and hospitality building industries. New vacation and tourism sites have boosted the hotel construction industry, and there is an exceedingly high demand for new multi-family developments. Counter-tops have gained considerable popularity in both residential and commercial properties, and the global countertop market is now valued at $89 billion and projected to reach $110 billion by 2027. This business provides stone countertops, tub decks, and shower seats and sinks for these properties.
OPPORTUNITIES TO SCALE
This business has been involved in more than 100 different projects across the US for unique residential and commercial purposes. The company has gained an impressive reputation and, with very few employees and no inventory to manage, can be scaled quickly by expanding beyond word-of-mouth referrals through digital marketing. Additionally, the company could open up retail locations, and supplant them with additional inventory management and warehousing capabilities, improving services and delivery times.
Asking Price: $3,499,999
Gross Income: $6,112,419
Cash Flow: $878,344
Year Established: 2008
Employees: 5
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