South-Central Iron Door Retailer + Distributor
Healthy Inventory, Beautiful Showroom & 307% Sales Growth 2017 to 2019
The company is a retailer and distributor of imported iron doors and iron door hardware located in the South-Central region of the United States. The business has a beautiful showroom display catering to homeowners as well as an organized 15,000/sq. ft. warehouse to hold its inventory.
The owner is a successful, high-end home flipper who started the company after seeing a massive need for access to iron doors. The owner knew there had to be an easier way for regular consumers and home flippers to purchase high quality doors at affordable prices which led him on the path to start the business.
As of May 2020, the company has 270 double doors and 170 single doors in its inventory. The company’s healthy inventory and solvency has given them a competitive advantage during the COVID pandemic forcing some retail customers to rely solely on them as a supplier. A typical customer order ranges from $3,500 - $5,000 and the company charges customers per square foot on all door sales. Retail gross margins are 60% and wholesale margins range between 50% and 58%.
The company has a great relationship with their supplier and is one of the supplier's largest customers. The company is reimbursed from the manufacturer for any out of pocket costs or provided replacement parts/doors from the factory for any damaged supplies. A logistics company handles all ocean container shipping. The company usually orders 40ft containers that lowers their shipping cost to $100 per door as opposed to most competitors that are charged a partial cargo fee of $1,800 per door.
Purchase Considerations
- The company was founded in 2015 and its growth has exploded every year since. Sales have increased an impressive 309% from 2017 to 2019.
- Located conveniently near a major airport, the company benefits from being in one of the most populous counties in the United States.
- The company implements a flexible business model. The owner discovered how to provide quality iron doors to a diverse group of customers all while maintaining incredible margins. Customers range from homeowners, builders, and retailers throughout their immediate area and the surrounding Gulf Coast region.
- Access is the key to the company's success. By placing the interests of customers first, the company has made it possible for homeowners of all social classes to make a statement and install a piece of luxury to their home.
- Besides the location, another reason for the company’s fantastic organic growth lies in their incredible domain name which allows customers to find exactly what they are looking for when searching the web.
- Sales have increased 309% from 2017 to 2019.
- Momentum in sales shows in the twelve trailing months ending April 2020 totaling $2,058,776 compared to $1,814,140 in 2019.
- Sales growth has continued even during the COVID crises of Q1 2020.
- Q1 2019 sales were $574,690 compared to Q1 2020 at $819,326. That’s an increase of 42.5%
Negotiable