All prices in USD
  • Avg. revenue /month
    $2,941
  • Avg. sessions /month4,805
  • Avg. profit /month
    $1,000

Business Story

Why this business was started

My son and I love hot sauce and spicy foods, and saw an opportunity to turn our hobby into a business. We started Doc Hotties in 2017, and we have established ourselves as a customer-friendly retailer of sauces that can't be found in brick and mortar stores.

The global hot sauce market is anticipated to grow from $2.71 billion in 2021 to $4.38 billion in 2028, and now is a perfect opportunity to jump into this growing market as an established hot sauce retailer, with a sizeable customer file. There is a considerable opportunity for growth and acquisition of market share.

The reason of selling this business

We own a marketing and consulting agency, as well as several other retail businesses, and we just don’t have the time to dedicate to growing this business that it deserves. We’ve established a solid brand and following over the last several years, including a successful subscription box business, but we don't have the time to really grow to the $1M/year in sales that it could easily be.

What's involved in running this business

On a day-to-day basis it involves fulfilling orders, monitoring inventory, ordering from wholesalers and directly from makers, maintaining packaging supplies, and engaging with customers on social media, chat, etc. We’ve reached the point where hot sauce makers reach out to us to carry their sauces, so we no longer have to search for new products. We do like to taste test most sauces before adding them to the catalog, and give honest reviews, but this is optional. Other than that, developing content for the site (product and lifestyle photos, blogs, product descriptions) and social media content would be the main tasks.

This business was founded: over 5 years ago
Time to run this business: approximately 3 hours per week

Traffic and Performance

  • Avg. revenue /month
    $2,941
    Verified
  • Avg. sessions /month4,805Verified
  • Avg. profit /month
    $1,000
  • Profit Margin30%
  • Avg. sales /month98
Other details about profit: Profit could be greatly increased by ordering larger volumes of sauces, and benefiting from pallet ships, which would lower shipping costs. Typically the COGS is 40% to 50% before other related costs like shipping. In 2021 we had the following total costs (full Excel document available): Shipping costs: $6,356.28 (shipping is actually a source of revenue since we collected $9,227.89) Payment fees: $763.33 PayPal fees: $243.95 App fees: $324 Domain: $14 COGS: $11,559
Total revenue
  • $191,191
  • Revenue data comes directly from Shopify and cannot be edited by the seller
    Total traffic
  • 312,386Visits
  • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $79
      /month
    • Domain
      $14
      /year
    • Mailchimp, review apps
      $100
      /month
    • Google Ads
      $150
      /month
    • Packaging supplies, and miscellaneous
      $100
      /month

    Sale Includes

    • Physical inventory

      Not Included
    • Logo and branding assets

      A variety of logo files, lifestyle images, and t-shirt designs, that can be transferred via Google Drive.
    • Personal support after sale

      We will provide initial training and walk-through of the business, as well as transfer industry contact information, access to wholesale accounts, etc. We can be available for support and consult for two months after the purchase, for up to 20 hours total. Further support can be negotiated if necessary.
    • Domain

    • Product photos

      We have a quite a number of our own copyrighted product photos and lifestyle images. These can be transferred via Google Drive.
    • Social media

      Total followers1,336subscribers
    • Suppliers

      We have relationships with a number of wholesalers, as well as numerous direct relationships with hot sauce and spicy food makers who are often not available via wholesale outlets. We will not only provide these contacts and access to the accounts, but will help to make introductions.
    • Mailing List

      6,295subscribers

    Seller‘s Advice

    How to grow this business

    There are a ton of opportunities to grow this business. One would be better leveraging social media and content marketing by adding more videos, interviews with sauce creators, tasting and review videos, and adding recipes to the site. There is also a huge opportunity to add wholesale sales to leverage volume and repeat business, and particularly adding dropshipping. Right now we’re not aware of any wholesalers in the industry who have dropshipping capabilities for the smaller retailers. Another opportunity for growth would be adding other spicy food products, including jerky, spicy snacks, salsas, rubs, powders, and spicy foods like hot honey, hot maple syrup, etc. There is also room to expand hot sauce related apparel and print-on-demand products.

    Skills to have

    A basic understanding of ecommerce, and familiarity with Shopify. An interest in spicy foods, hot sauce, or the food industry would be a help, but would not be necessary. A basic understanding of social media marketing, Photoshop of similar graphics tools, photography or videography, and writing skills, are recommended.

    RB
    Roy B.Current store owner

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