Explosive Growth in 2021: Established Ecommerce Retailer of Lower Receivers, Jigs, and Gun Parts Kits
This eCommerce retailer specializes in the sale of lower receivers, jigs, and gun parts kits. With over 8 years of experience, the company has become a leader in the niche field of do-it-yourself firearms finishing and customization. They offer customizable gun parts and kits, catering to gun enthusiasts who want to build their own personalized firearms. The business has experienced significant growth, with sales increasing 10 times in 2020 compared to the previous year. They have a strong online presence, with a website that attracts over 321,000 monthly visitors.
OPERATIONS
The company operates solely through its website, selling a wide range of gun parts and accessories. They have an average order value of $280 and carry over 113 stockkeeping units (SKUs). The business stocks inventory worth $1-3 million, depending on the season, and operates from a 4,000 square foot warehouse. They ship over 500 products daily, with customer service receiving up to 300 contacts per day.
The company maintains relationships with suppliers for inventory sourcing and ensures a smooth supply chain. They handle warehousing and shipping operations from their 4,000 square foot warehouse.
MARKETING AND KEY METRICS
The company implements a successful digital marketing strategy, including SEO, email marketing, and social media engagement. They have a blog on their website and send out 2 marketing emails per month. They also leverage their YouTube channel to reach a wider audience and engage with gun builders’ groups. The brand has built a strong following on Instagram, with over 10,000 followers and has collected 116,000+ email addresses.
The company’s sales primarily come from their website, which has seen a 551% increase in sales in 2021 compared to the same period last year. To further grow their sales, the business could consider expanding into retail firearms stores or introducing new products and accessories. They could also explore partnerships with other gun-related businesses to expand their reach and customer base.
The business has generated over $14 million in revenue in 2020, and sales are projected to more than double by the end of 2021. The average customer age range is 25-50, with a predominantly male customer base. The company holds a design patent for some of its compatible inserts and is the market leader in Precursor Pistol Receivers.
The company’s customer base consists of gun enthusiasts, primarily males aged 25-50. They have built a loyal following with over 10,000 Instagram followers and 116,000+ email addresses. The business has received positive reviews for both their products and customer service.
BUSINESS MODEL & RESOURCES NEEDED
The company has a dedicated team in place to manage day-to-day operations. They have a full-time office manager, production manager, and warehouse manager. Additionally, they employ two part-time customer service representatives, three to five part-time warehouse workers, and four part-time assembly line workers.
THE INDUSTRY
The firearms industry has experienced significant growth in recent years, with increasing sales of firearms and handguns. This company targets a specific niche market of gun enthusiasts who want to build their own firearms. The sale of 80% lower receivers, which are unfinished gun firing components, does not require background checks or government fees. The industry has seen a rise in the number of first-time gun buyers, and this business has positioned itself as a trusted provider of customizable gun parts and kits.
OPPORTUNITIES TO SCALE
There are significant opportunities for scaling this business. By expanding their product offerings, including parts for AR-15 rifles and other accessories like red dot sights and holsters, the company could double its revenues. Introduction of new receiver designs, once approved, could further increase revenues. The business could also explore international markets and consider franchising opportunities.
Asking Price: $32,100,000
Gross Income: $25,458,265
Cash Flow: $6,437,667
Year Established: 2013
Employees: 7
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