17-year-old Pet Safety & Protection Company with 5 Trademarks, Multiple Patents, and 4 Shopify Stores
This 17-year-old company specializes in developing unique and proprietary pet safety and protection products with multiple patents. They sell their products through eCommerce channels across 4 Shopify websites and Amazon.com, with 27% repeat order rates. They have excellent customer demographics, and their typical customer is middle class to affluent, between the ages of 35 and 70, and shares a devotion to their pets. They have 4 separate eCommerce domains from which to market their products. The company could increase profits by introducing new products or expanding their successful affiliate programs. With low inventory risk and a highly competitive interest rate, our lending partners are willing to underwrite up to 90% of the purchase price.
OPERATIONS
The company’s proprietary pet safety and protection products include cat fence enclosure systems, fencing modification systems, freestanding fencing, portable containments, modular full enclosures, and over 500 pet safety accessories. Their SKUs have expanded to include cat rescue agencies and pet shelters, and they sell 56% gross margins in the US, Canada, and Europe. The company averages 14 shipments per day all year round, with sales evenly distributed throughout the year. The company has 6 employees and four new products are in the design phase.
They have low inventory risk with a drop-shipping business model. They have relationships with three factories in China and maintain inventory levels at their fulfillment center in the US.
MARKETING AND KEY METRICS
The company has excellent marketing efforts, primarily on social media such as Facebook, where they have 48K followers. They rely on word-of-mouth advertising from glowing customer reviews and have a large email database of over 14K subscribers. They used pay-per-click ads on Google and Bing to boost sales and run affiliate campaigns on their social media sites.
The company sells its products through eCommerce channels across 4 Shopify websites and Amazon.com. Amazon represents 6% of sales (with huge growth potential). The company has also been approved for sales on Walmart.
The company enjoys 27% repeat order rates, and their average customer lifetime value is $1,082. Their 56% gross margins in the US, Canada, and Europe are impressive, and Amazon represents 6% of sales (with huge growth potential).
Their typical customer is middle class to affluent, between the ages of 35 and 70, and shares a devotion to their pets. They have 27% repeat order rates, and their average customer lifetime value is $1,082. Their excellent customer demographics are likely to be loyal to their brand.
BUSINESS MODEL & RESOURCES NEEDED
The company has 6 full-time employees consisting of a general manager, SEO specialist, social media manager, and customer service representatives. Their operations are fulfilled through a third-party fulfillment center.
THE INDUSTRY
The pet care industry is valued at $55 billion and projected to hit $269 billion by 2025. The growing number of pet owners willing to spend on pet care products and services has sent the industry’s profits soaring. There are approximately 68 million American homes that have at least one pet. This company differentiates itself from the competition with its proprietary pet safety and protection products.
OPPORTUNITIES TO SCALE
The company can introduce new products, focus on b2b sales, expand its affiliate programs, increase ad spend on Amazon, Facebook, and Google, and place more listings on Amazon. They could also get major pet retailers such as Petco, PetSmart, and Chewy to carry their product.
Asking Price: $6,000,000
Gross Income: $3,391,130
Cash Flow: $1,441,302
Year Established: 2004
Employees: 6
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