bedding supplies

Hospitality Supplies Retailer: Serving Hotels, Hotel Management Companies & Assisted Living Facilities

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This eCommerce brand is a retailer of hospitality supplies, specifically targeting hotels, hotel management companies, and assisted living facilities. They offer a wide range of products, including mattress encasements, bedding supplies, hotel appliances, and maintenance supplies. The business operates with low overhead, as all products are drop shipped directly from the manufacturer. They have shown consistent growth year over year, with a solid supply chain and a 10 year warranty provided by the manufacturer. The company has opportunities for expansion, including adding new products and implementing effective marketing strategies.

OPERATIONS

The operations of this business largely involve managing the eCommerce website and coordinating with manufacturers for drop shipping products. With no need for inventory or warehouse employees, the business has low overhead costs. The average order value is $1,200, driving traffic and conversions on the website. There are opportunities for growth and expansion through adding new products and effectively marketing the existing product range.

The business operates with a drop shipping model, meaning products are shipped directly from the manufacturer to the customers. This eliminates the need for inventory and warehouse employees. The manufacturer provides a 10 year warranty and handles replacements and shipping issues. This ensures a smooth supply chain for the business’s operations.

MARKETING AND KEY METRICS

Marketing efforts for this business have not been consistent, leaving plenty of room for growth through various online marketing channels and call centers. Implementing a comprehensive online marketing program and utilizing the existing email database can generate instant revenue. There are also opportunities for international expansion through platforms like Amazon and eBay. Building the brand through trademark recognition and private label opportunities can also contribute to growth.

The business has opportunities for growth through various sales channels. By implementing effective online marketing strategies and utilizing call centers, the business can increase its customer base and drive sales. Expanding product lines and targeting high-volume SKUs can also contribute to growth. With the growing demand for hospitality supplies due to the reboot of the industry following COVID-19, the business is well-positioned for sales growth.

Key metrics for this business include average order value, website traffic, conversion rate, repeat customer rate, and customer acquisition cost. These metrics can provide insights into the financial performance and success of the marketing strategies employed.

The customer base of this business consists primarily of hotels, hotel management companies, and assisted living facilities. These customers require hospitality supplies for their operations and maintenance. The business has a steady repeat customer base of 20-25%, indicating customer satisfaction and loyalty. With the increasing focus on hygiene and cleanliness in the hospitality industry, the customer base is expected to expand as these businesses prioritize procurement of the necessary supplies.

BUSINESS MODEL & RESOURCES NEEDED

This business currently has 1 employee managing the operations and logistics. As the business grows and expands, there may be opportunities for additional hires in sales, marketing, and customer service roles.

THE INDUSTRY

The hospitality industry encompasses a wide range of businesses that provide services and products to customers in the travel and accommodation sector. This specific business operates in the hospitality supplies sector, catering to hotels, hotel management companies, and assisted living facilities. The industry is highly competitive, with players ranging from large hotel chains to small suppliers. Examples of competitors in this industry include ABC Hospitality Supplies, XYZ Hotel Solutions, and DEF Assisted Living Supplies.

OPPORTUNITIES TO SCALE

There are scale opportunities for this business, particularly through expanding the product range, implementing comprehensive marketing strategies, and exploring international markets. By adding new products, the business can attract a wider customer base and increase revenue. Effective online marketing programs and utilization of the existing email database can drive sales growth. Additionally, expanding into platforms like Amazon and eBay can tap into new markets and increase brand exposure.

Asking Price: $430,000
Gross Income: $868,377
Cash Flow: $141,836
Year Established: 2016
Employees: 1

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