17-Year Pet Containment Business with 250 SKUs, 38% Net Margins, and 27% Repeat Order Rate
A 17-year-old company operating in the pet care industry, specializing in pet containment. They offer a range of outdoor fencing systems to keep pets safe and secure. With three brands and multiple patents, they have a portfolio of over 250 SKUs. The company has a strong online presence and utilizes social media to raise brand awareness. With a focus on customer satisfaction, they have a high repeat order rate of 27%. The company has experienced steady growth and has opportunities for expansion through B2B sales, wholesale programs, and partnerships with specialty pet retailers.
OPERATIONS
The company operates primarily through e-commerce platforms and sells their products on four Shopify websites. They also have listings on Amazon, representing 6% of sales. With a strong R&D system, they are constantly developing new products to meet customer demand. The company maintains a 10,000 square foot building stocked with inventory valued between $240,000 and $400,000. They handle an average of 14 shipments per day.
The company manages its supply chain and logistics internally and maintains a 10,000 square foot building for inventory storage. They stock between $240,000 and $400,000 worth of inventory. Sales are conducted on their e-commerce platforms, primarily through Shopify websites. They also have listings on Amazon, representing 6% of sales.
MARKETING AND KEY METRICS
The company’s marketing strategy includes word of mouth, testimonials, and customer photos. They have a large email database for email marketing, utilize PPC ads on Google and Bing, and have an SEO program with a blog. They also have a strong presence on social media platforms and run affiliate marketing campaigns. There are opportunities for further expansion through blogger and influencer partnerships and increased ad spend on Amazon, Facebook, and Google.
The company primarily sells through their Shopify websites and has started expanding to Amazon, representing 6% of sales. There are opportunities for growth through B2B sales, establishing a wholesale program, and partnering with specialty pet retailers. They are approved for sales on Walmart but have not yet utilized the platform. The company is continuously expanding its product line and expects to launch four new products in the spring of 2022.
Key metrics for the company include a net margin of 38%, a repeat order rate of 27%, and an average order value of $1,481. They have 56% gross margins across the US, Canada, and parts of Europe. The company has a customer lifetime value of $1,082 and a customer base primarily composed of middle-class to affluent pet owners aged 35 to 70.
The company’s customer base primarily consists of pet owners aged 35 to 70 who are middle-class to affluent. They have a high repeat order rate of 27% and a customer lifetime value of $1,082. The company has received positive reviews and testimonials from satisfied customers, as well as endorsements from cat rescue agencies and pet shelters.
BUSINESS MODEL & RESOURCES NEEDED
The company has a team of 7 employees managing various aspects of the business, including customer service, marketing, operations, and R&D.
THE INDUSTRY
The pet care industry is a lucrative market worth $250 billion. With an estimated 54% of US households having at least one pet, there is a large consumer base for pet-related products. The company’s focus on pet containment aligns with the growing demand for pet safety and security. They have established themselves as a leader in the industry with their unique and innovative fencing systems. The industry is projected to experience strong growth in profitability, with retail sales of pet products and services surpassing $107 billion in 2020.
OPPORTUNITIES TO SCALE
The company has opportunities for scale through B2B sales, wholesale programs, partnerships with specialty pet retailers, and further expansion on Amazon, Facebook, and Google. They also have the potential to increase their presence on Walmart. Additionally, the company has a strong R&D system, allowing them to develop and launch new products to upsell to their existing customer base.
Asking Price: $6,300,000
Gross Income: $3,305,116
Cash Flow: $1,359,429
Year Established: 2004
Employees: 7
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