Previous store

$84,546 USD

Private listing #255195

Appears in Construction and industrial , Canada, Ontario, Established stores, Large Business, Business and Franchises under $100,000, Businesses using Shipstation for Sale, Private listings

General description

Operational Details:

Ownership - Sole Proprietor registered and operated in Ontario, Canada. The Business officially opened in November of 2013.

Location - Production, Warehousing, Shipping & Receiving, and Office were located in our rented space at 142 Waterloo Street, Waterloo (Ontario). We are not currently producing, since our moving out of this location as of June 2018.

This location served us very well, providing approximately 450 square feet to get started, then we quickly expanded into the neighbouring unit to operate in approx. 900 square feet for the next 4+ years. Eventually our need to ship and receive multiple pallets per day created a dilemma - we needed to expand in order to manage the growth, which required outside investment or financing. (Please see details in the 'Our Story' section below).

Staff - At our peak, we had only 1 customer service employee working remotely (from home) approximately 2 hours per day. We also had only 1 production and shipping employee approximately 15 hours per week. As the owner, with both employees in place, I could pursue the PMRA labels, selling on other platforms, updates graphics and web content, and expand our sales volume to serving local farmers as well; amidst minor management responsibilities to carry the basis of our operations 5 days per week (Mon-Fri).

Product Details:

We operated in a GMP standard environment, with a simple packaging line suited for stand-up pouches (228g to 1kg) and stitched paper bags (2.5kg). The product was originally and steadily sold under the Feeds Act under Canadian legislation. We then also acquired two federally registered insecticide licenses under the PMRA (the sector of Health Canada who regulates sales of pesticide products). One license was for an end-user product to be sold domestically, and the second license was for selling business to business, under a commercial license.

By the end, we had a plastic-free production line, meaning that all our packaging material was sourced from compostable or paper-based materials. Our manufacturing process ensured that all raw product contact points are food grade stainless steel, and that each product was made safely without contamination of moisture or foreign particles.

Marketing Strategies Employed:

I built the brand of Diatomaceous Earth Canada to be a reliable and safe supplier of primarily food grade diatomaceous earth, to Canadians nation-wide with excellent prices and service. We used our high ranking website [REDACTED] also redirecting a number of other related domains including ([REDACTED] [REDACTED] and [REDACTED] as the main channel to attract direct customers and retail/wholesale leads.

We have maintained a positive search engine ranking for 4+ years now, including being ranked first for the phrases 'diatomaceous earth Canada' and 'food grade diatomaceous earth'. Our marketing strategy has primarily functioned on keeping a good quality website with effective content, to maintain a positive and reliable presence online. This has helped us also retain many recurring buyers, both end-user and retail/wholesale customers.

We also used a Google Adwords Campaign until Sept. 2017, and had our products listed on [REDACTED] where we have many excellent reviews, and a first page rank. We also listed our product on [REDACTED] and for a short-time on Facebook.

Amazon - [REDACTED]

Our Social Media Accounts include an outstanding Facebook and Twitter presence. We also have a first page showing Google Plus Account, which sadly needs a boost of positive feedback after a rough month with many late or missing shipments in 2018 (March), we were not able to persuade the customers of their already published feedback.

We also used an affiliate program which never yielded more than a few sales from each person who shared our website and product with their personal Facebook friends list.
In summary, we drove all sales and leads from our website traffic. The opportunity was always enough to keep busy with that volume. Any capable candidate in terms of both logistics and cost structure will have the ability to sell beyond our records. We often had to turn away international bulk orders, local bulk orders, and high volume retail orders, especially within the last 2 years of operating.

Financials and traffic

Any prospective buyer should consider if their cost structure is more effective than ours. Larger companies who can logistically handle higher production batches will be most successful in the future.

Average profit/month

$2,603 USD

Average overall profit margin

33%

Average number of sales/month

250

Recent revenue

$310,285.00 USD

Recent traffic

179,850 Sessions

Revenue and traffic data from this graph is calculated by Exchange and can not be edited by the seller. Average profit, profit margin and number of sales are provided by the seller. Learn how Exchange calculated this data.

Business Expenses

Our employees worked at minimum wage +10% and our rental cost for the unit we operated in was approximately 800 CAD monthly.

Expense item

Cost

Shopify plan

$60.00/month

Subscriptions (ie. Mailchimp, apps)

$60.00/month

Advertising (ie. Adwords, Facebook ads, etc.)

$85.00/month

Domain

$1.00/month

What’s included in the sale

  • Physical inventory
  • Logo and branding assets
  • Social media accounts
  • Personal support after sale
  • Domain
  • Product photos

Social Media

Mailing list

11,300 subscribers

Social media followers

550 people

Q & A

Why should someone buy this store?

Whether or not to finance further growth became a final decision for me to make as the owner (JP Gagliano) at the end of 2017 Summer, as the business reached it sales peak. I decided to decline investment and financing any further growth of DE Canada.

Why? As a cereal entrepreneur, this is my second successful business in 8 years to offer for sale. My career path takes me into pioneering another project already, which will be officially launching Sept. 2018. My career depends on my creativity, and my ability to develop this business expired when it came down to simply more financing to keep up with the growth and product demand... Hence, it is now listed here on Exchange to seek a new owner.

After I decided not to finance the growth of the business, we scaled the sales down from Sept. 2017 to June 2018 by reducing product size options (discontinued the 2.5kg and bulk ordering). As the sales and product volume scaled down, I could manage to suspend sales, close the warehouse location, and move the equipment safely into temporary storage.

Upon viewing, the recent sales volumes will reflect this trend. Some sharing of the business going up for sale has been shared outside of Exchange, so please understand that we are aiming to see the ownership in new hands by Sept. 15th 2018. The traffic and demand for food grade diatomaceous earth in Canada is still growing annually (see Google trends graphic).

How can the future owner improve the business?

I'm excited that DE Canada is my first offer to post in the Exchange Community, and more importantly the Diatomaceous Earth Community at large. The offer is priced to sell, knowing we never reached nearly it's potential. Please see the other assets listed, which include our GMP quality equipment, as well as PMRA insecticide label copies, suitable for end-user and commercial level sales (b2b) as a pesticide product (in addition to the feeds act product).

The ideal candidate to acquire, absorb, or simply continue the DiatomaceousEarth.ca presence and brand, is someone who can handle the logistical work load, specifically shipping several pallets of packaged product daily, and essentially packaging a food grade powder on a GMP light-manufacturing line.

Food Grade Diatomaceous Earth is a proven market with many niches, and the growing need for non-food grade DE products is also increasing as the legal Cannabis industry begins to bloom. We are open to offers from small business professionals who would seek to continue our brand, to large scale international mines and suppliers who may take DiatomaceousEarth.ca in an entirely new direction.

We are especially looking for offers from candidates who are already established in the Diatomaceous Earth industry in North America (from retail to industrial). This is an opportunity to distinctly take an authority position in the Canadian market.

Please be prepared that my responses by phone and email may take 24 hours to return, and I am happy to have prepared discussions and negotiate conditional offers. Serious buyers only.

What work have you put into the store?

Diatomaceous Earth Canada (DiatomaceousEarth.ca) was launched in late 2013, offering 228g and 454g packages, sold only online and within Canada. Steadily the niche allowed us to scale our product sales volume up to +80k (CAD) annually. It was exciting growth to ride as our sales took off to a great start, however, we were always in a position where new customers, sales, and growth were turned away.

Scaling the business from scratch, without taking more than a small 'angel investment' for renovating an office and purchasing equipment, the business grew from making a few small orders per day of a "2-Pound Special" to peaking in July 2017 with moving 2+ tons of product per month, satisfying customer demands nation-wide, ranging from single 400g and 2.5kg units, up to 20 cases of packaged product, or bulk orders of 1/2 metric ton.

How many hours does it take to run this business per week?

40 hours

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