Spectacular 7-Year Chicken Coop Accessories Brand with TTM Growth Over 20% in 2021
This eCommerce brand specializes in selling chicken coops, equipment, and accessories for backyard chickens. With 7 years of experience in the industry, the company has seen strong, consistent growth and continues to thrive. They cater to a high-growth niche of individuals and families interested in backyard chickens for various purposes such as egg production, composting, and pets. The company manufactures its own chicken coops, which are highly sought after for their quality and design. They also offer a range of other products like chicken accessories and automatic coop door openers.
OPERATIONS
The company operates primarily through its Shopify website, where most of its sales take place. They have also expanded to Etsy to market additional products. The company has a high average order value of $1,200, and they focus on providing exemplary customer service. They have a large email database of subscribers and a growing repeat customer rate. The company ships products from their 5,000-square-foot warehouse and maintains high inventory levels during peak seasons. With a highly automated system, the current owner spends less than 10 hours per week running the business.
The company benefits from having its main product, chicken coops, manufactured directly for them under their own designs. They maintain a 5,000-square-foot warehouse where they store inventory and ship products. The company ensures careful packaging and expedited shipping to prioritize customer satisfaction.
MARKETING AND KEY METRICS
The company utilizes several marketing strategies to reach its target audience. They run PPC ads to increase visibility during customers’ research process for chicken coops. Their social media platforms, including Instagram and Facebook, help generate organic traffic. The company also upsells third-party automatic chicken doors at checkout to generate additional revenue. They have a blog on their website and utilize email marketing campaigns to keep customers engaged.
The company has experienced strong growth in its direct-to-consumer (DTC) website sales, with consistent year-over-year growth. They have diversified their sales channels to include platforms like Etsy. There are opportunities for further growth by expanding to B2B sales, targeting wholesalers and retailers. Additionally, selling products on platforms like Amazon and Walmart and implementing new digital marketing tactics can drive sales even higher.
The key metrics for this business include strong year-over-year growth, a high average order value, a large email database, a growing repeat customer rate, and a high number of unique monthly visitors to the website.
The company’s average customers are individuals or families who have recently invested in backyard chickens. They are looking for high-quality coops that offer protection for their chickens and meet their specific needs. The customer base is steadily growing, and the company has a large email database and a growing number of repeat customers.
BUSINESS MODEL & RESOURCES NEEDED
The current owner of the business spends less than 10 hours per week running the operations. With automated systems in place, there is potential to scale the business without significantly increasing the need for human resources.
THE INDUSTRY
The company operates in the backyard chickens industry, which has seen significant growth in recent years, especially during the pandemic. More individuals and families are embracing the idea of raising backyard chickens for various reasons such as self-sufficiency, environmental sustainability, and pet companionship. This industry is not limited to rural areas and has a market value of $322.55 billion in 2021, projected to reach $422 billion by 2025. The global poultry sector, with chicken as the main breeding area, represents more than 90% of the poultry sector.
OPPORTUNITIES TO SCALE
The business has various opportunities for scaling. They can expand into B2B sales, reaching out to wholesalers and retailers in the industry. The company can also explore new sales platforms like Amazon and Walmart to reach a broader customer base. Implementing affiliate marketing and email marketing campaigns can further drive sales. Additionally, introducing new product lines and expanding their current offerings can provide upsell opportunities and increase revenue.
Asking Price: $2,550,000
Gross Income: $2,504,647
Cash Flow: $634,850
Year Established: 2015
Employees: 1
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