Revenue per month: 2,471,031$
Profit per month: 441,483$
Uniques per month:
Views per month:
Year founded: 1996
Website Closers® presents a global eCommerce powerhouse in the sale of Knives and Blades of every type, size, make and model. This Website is the go-to place online for the largest selection of knives available on the market – over 27,000 SKUS are stocked and available, with more always in the pipeline.
The company has invested heavily in video and image creation for each piece it sells, resulting in a high conversion rate and large following on its YouTube channel. Many videos on their channel have hundreds of thousands of views, making this website not just a one-stop shop for all things knives, but also the best place to become informed and to see each piece in high definition video before making a decision to buy.
This investment in product imagery has created a building block of success resulting in soaring sales that have continued right through the pandemic. Even though most knife retailers had difficulty keeping up with sales during COVID, this business did not. They were well stocked throughout and continue to ramp up inventory to ensure they are always able to meet demand. This places them in a special place to be able to grow quickly, even beyond where it is today.
At the moment, the business relies entirely on its eCommerce Website for sales, leaving immediate and tremendous opportunities to scale the business, from adding in-house designed, proprietary private label blades, to expanding sales channels into Amazon, Walmart, etc. to further development of an SEM program even beyond the powerful SEO this company already has in place. The placement of the company on page 1 of google in virtually every major keyword associated with this category allows the company to keep advertising costs down. In fact, in the last twelve months, there has been zero spend on advertising, which is unheard of in this space. The demographic makeup of this organic traffic alone is highly valuable in the right hands.
This company has been in business for 25 years, and has become a sought after retailer in this space. In the last twelve months through June, they have achieved $5.3M in earnings, and this number is planned to continue to grow throughout the year. Ownership sees a minimum of $6M in earnings for the full year 2021, and given the current growth rate, this number could easily exceed $6.5M depending on how the holiday season turns out.
The market for knives and survivalist gear has been growing tremendously in the past few years, and so has the online market for custom knives, making this an invaluable opportunity. This brand has carved out a corner of this market by appealing to the industry’s top demographics of men between the ages 30 through 55. Many of them are quick to become repeat customers, returning to the sites frequently to purchase a new knife every 2-5 months. This is a popular niche field, from soldiers to outdoorsmen to average citizens concerned about their personal security, men have been carrying pocket knives for centuries.
Their current SKUs carry an average order value of $145 and the brand has a 30% repeat customer rate across their 11 market sectors, where their products have no trouble finding receptive audiences. The company stocks all of its products. Today, the company has 27,000+ active SKUs, and sales are so strong that the company averages between 500 and 1,100 shipments per day from their 10,000 square foot warehouse. The company now has $4 million in inventory to keep up with demand.
Another factor in their success and rapid growth has been the strong team that the current owner has in place. The company employs 35 workers, including six managers. Many of these employees have been with the company for the past decade and include top level professionals in their field. The company’s custom knife buyers have years of experience in this industry and solid long-term relationships with custom knife vendors around the world. Likewise, their creative department includes a creative director, email marketing designer, professional photographer, two videographers and a full-time social media director. This high value team has played a crucial role in helping the company develop its excellent global reputation for incomparably durable and high value products while building a loyal customer base and convincing those first-time buyers to return for more. Not surprisingly, the company now handles thousands of customer service inquiries a day.
After 25 years of iteration and evolution, this eCommerce business checks every box that an acquisitive company is looking for in an acquisition. They’re a market leader, have a massive following and repeat order rate, they continue to grow YOY and they have a multitude of scale opportunities readily available in the hands of new ownership. While the current owner is retiring after many long years running this business, his staff already runs daily operations and will be of immediate assistance to a new owner so that the transition is seamless and continuity can be achieved on day 1 of closing.
This eCommerce Website Represented by:
Tech, Internet & eCommerce Business Brokers
Listing ID: WC2388