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.