ecommerce office supplies, long-term for govts; $2m net (45% margin)

  • Found: Mon Sep 20 14:04:30 2021
  • Updated: Mon Sep 20 14:04:30 2021 (GMT)
  • Source: Bizquest
Price

8,000,000$

Type: On sale
Sale method: Classified
Sale status: Open

Contact seller
Financials (verified)

Revenue per month: 490,833$
Profit per month: 166,667$

Traffic

Uniques per month: —
Views per month: —

Summary

Year founded: 2012

Description

since 2012, gorilla stationers, llc (“gorilla stationers”) has been a reliable, customer-driven, single source provider of office supplies and services for governments and businesses. gorilla drop ships its 150,000 products primarily to local, state and federal governments under a long-term government gsa contract. customers can place a single order; get a single delivery and a single invoice. products range from paper clips to promo items, business machines, janitorial supplies, ppe products, promotional items and document services including printing, signs, and banners. with a globally outsourced team and infrastructure, no media advertising, as well as inventory drop-shipped from suppliers, this keeps overhead low, creating both lower prices for customers and higher net income margins of 45%.

company highlights:
+45% net margins with seller’s discretionary earnings of $2 million ltm.

+sales up 5x since company team was moved globally in 2019-2020.

+in 2020, received a gsa contract, which is a long-term governmentwide contract with commercial firms providing federal, state and local government buyers access to commercial supplies and services. 80% of revenue is from these government contracts.

+overall market growth in janitorial, government office supplies and home office supplies.

+much lower operating costs in the industry. lower labor costs with staff overseas.

+working capital light. very little inventory since most orders are drop shipped from suppliers direct to customer. little receivables.

+competitors traditionally stock products and have dead inventory. competitors have higher cost structures with big u.s. based staff, inventory carrying costs and warehouse and labor costs for the inventory.

+ efficiency: utilizing contract drivers (uber/ lift) for 24/7 seven day a week pickup and deliveries that others just cannot perform.

+28 shipping facilities stationed nationwide to fulfill their promise of next-day delivery.

+netsuite erp system - the premium business management tool.

+easy for owners to operate remotely. only a virtual office in long beach, ca to do business with la county, one of the biggest customers.

+growth opportunities: open physical offices in the largest city / county markets in the country to enable “local business” preference as government agencies give priority to small, local businesses first before sourcing beyond. also, open satellite offices to increase reach from 10 million to 40+ million in population.