Agricultural and Construction Equipment Brand: Hydraulic Solutions for Multichannel Ecommerce
This family-owned business has turned a traditional Brick & Mortar centric business into a flourishing eCommerce brand. With nearly 800 white labeled, fully branded SKUs that do exceptionally well at an average order value of $155, all from ISO 9001 Certified Manufacturers, this company has enjoyed phenomenal 70% year over year growth while cultivating a loyal customer base that ranges from farmers and ranchers to heavy equipment operators.
OPERATIONS
The company creates value for customers by offering a channel skip via online sales, keeping prices lower than OEM and providing superior quality, customer service and warranties. Their loyal repeat customer base is rising fast and now represents 17% of overall sales.
Components are sourced from a mix of suppliers in the U.S. and several other countries, including China, Bulgaria, and Italy. They have accrued a huge email database of 12,300+ addresses, in addition to receiving 26,200+ monthly visits on their website. Sales are brisk, and orders are placed twice a week to domestic suppliers.
MARKETING AND KEY METRICS
The company currently sells via 3 online platforms including their D2C Website (50%), Amazon (43%) and eBay (7%). The company routinely receives plenty of 5 Star Reviews from its consumer base, Amazon Best Seller and Choice Badges and carries a 99% positive lifetime seller rating on Amazon.
The company averages 125 shipments a day from their warehouse plus 89 more per day that are Fulfilled by Amazon. They keep about $20,000+ worth of inventory at Amazon’s facilities. They have a huge email database of 12,300+ addresses, in addition to receiving 26,200+ monthly visits on their website. The vast majority of their web traffic is generated organically, mainly through SEO and keyword research.
This company’s customer base mostly consists of farmers, owners of construction companies, or ranchers who use their machines on weekends. The business has earned a growing number of B2B sales as well, particularly to other resellers and smaller equipment manufacturers. The typical customer is between the ages of 30-55.
BUSINESS MODEL & RESOURCES NEEDED
The current owner is responsible for managing the brand’s overall strategic vision, handling finances, and overseeing employees. Their workers include a chief operating officer, an eCommerce marketing manager, an account manager, an eCommerce marketing associate, a purchasing and operations coordinator, a warehouse manager, two shipping associates, one full-time and three part-time warehouse associates, a production supervisor, and three full-time, one part-time, production associate.
THE INDUSTRY
The Hydraulics Equipment Market is a highly profitable one, providing equipment for two major industries: agriculture and construction. This company was formed in 2016 to sell hydraulic equipment online – specifically, hydraulic quick couplers, valves, and specialized hydraulic kits used in agriculture as well as the construction industry. Among their many SKUs, their hydraulic multiplier is made specifically for this brand, which also manufacturers its electronic control switches and valve harnesses in house.
OPPORTUNITIES TO SCALE
The brand has excellent opportunities to scale, including by expanding the model kits they offer to include all major brands, implementing paid advertising campaigns, launching social media and email marketing campaigns, and exploring options for wholesale distribution to more original equipment manufacturers. With years of experience building up its customer base, this brand offers a buyer some incredible options for increasing sales and profitability.
Asking Price: $20,000,000
Gross Income: $8,526,301
Cash Flow: $3,133,246
Year Established: 2016
Employees: 12
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