Luxury LED Vanity Mirrors with High Net Margins and High Return Rates
Website Closers presents an eCommerce retailer in the premium home décor space, offering commercial grade luxury lighted LED vanity mirrors for bathrooms. The company’s products are enjoyed in prestigious hotels, spas, and makeup studios throughout the US. The mirrors produce the perfect light color to reflect images in sunlight conditions, and they come with features such as anodized aluminum frame construction, 5-year warranty, and options for different LED colors and brightness levels.
OPERATIONS
The company sells primarily on their Shopify website and also operates on marketplaces like Amazon, Walmart, and eBay. They have a warehouse-oriented business model, stocking all products and handling shipping from their own warehouse. They have a strong focus on customer service and have improved their website, branding, and packaging since acquiring the business in 2018.
Products are sourced from a single vendor in Asia and are manufactured to the company’s design specifications. They have unique and branded packaging designs that provide protection during shipping. The company stocks all products in their warehouse and does not rely on drop shipping or fulfillment centers.
MARKETING AND KEY METRICS
The company has boosted paid media on Google, Bing, and Amazon and collects customer reviews to enhance their online presence. They also encourage customers to send photos of their mirrors in their homes, which are posted on their social media sites. These marketing efforts have been highly effective, resulting in an average of 15,000+ monthly website visits.
The company primarily sells through their Shopify website but has diversified to marketplaces like Amazon, Walmart, and eBay. They have seen success in the commercial reseller market and have opportunities to launch new products and focus on retaining and upselling existing commercial customers.
Key metrics for the business include a 35% repeat customer rate and an average order value of $820 on their website. They have 113 different core SKUs and have seen substantial growth in their commercial business, particularly with repeat contract sales from the contractor community.
The company has developed a strong following among customers who praise the quality of their products and fast and reliable customer service. They have a repeat customer rate of 35%, which includes both residential customers and commercial contractors.
BUSINESS MODEL & RESOURCES NEEDED
The company employs a full-time operations manager, one full-time customer service representative, and six full-time warehouse workers. The daily operations require a commitment between 2 and 30 hours per week.
THE INDUSTRY
The company operates in the premium home décor industry, specifically in the segment of luxury lighted LED vanity mirrors for bathrooms. The industry has seen growth as more people are looking to remodel their homes, and the company serves both residential customers and commercial contractors. Examples of other companies in this industry include Mirror Image and Lumina Lighting.
OPPORTUNITIES TO SCALE
Opportunities for scaling the business include launching new products, building a marketing program targeted at commercial resellers, and expanding into multi-channel sales. The company has already achieved significant growth since acquiring the business in 2018, with projected earnings of $815,000 for 2021.
Asking Price: $4,000,000
Gross Income: $4,316,505
Cash Flow: $817,399
Year Established: 2018
Employees: 8
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