We started LTHR Supply a little over 3 years ago. We had a background in product design and leather working, and wanted to combine those skills to develop a live of original watches.
Our original inspiration was the fact that many people read their time in a digital format (left to right) on their phones. We wanted to combine the way people read time in digital format with analogue watches. We invented a method of using discs instead of hands, which enabled customer to read the time from left to right.
We paired our original design with luxury materials like stainless steel, full grain leather and swiss movements. We wanted to introduce this watch at an affordable price. Instead of using sourcing partners and wholesalers, we developed the relationships directly with the manufacturers of the components and assembled the final watches in our partner facility in China. The end result is a watch retailing at $228 that has good profit margins but feels like a much more expensive product.
This is our 3rd iteration of this store. In addition to having product design and leatherworking background, the founders are brand strategists and visual designers. The current design is a scalable, responsive and very effective ecommerce website.
The sale will include the Shopify store, the connected Amazon store, $15,000 worth of sellable product (combination of watches and aftermarket watch straps), ownership of the T1 and T3 watch models, custom shipping boxes, introductions to the turn-key manufacturers, introductions to our international and domestic retailers, documentation on the business (around importing the goods, design, sales process, etc), the domain, Instagram and Facebook accounts, and up to 8 hours of transition consulting (on the phone/skype, or in person anywhere in CT or Boston or NYC). We can provide on-going help with website maintenance and updates if needed through a contracted design company for a significant discount.
Business Model: We currently hold inventory and ship ourselves. We have purposefully not outsourced yet so we would have additional revenues to reinvest into the company. There is enough flexibility with pricing and profits to outsource fulfillment. We can help with this if needed. It is good to note that we’ve developed a highly efficient system of sourcing and fulfilling that reduces time spent on this step (compared to most companies) and includes custom designed boxes and a packing process. This information will be included with the sale.
Up to this point we have done almost no paid advertising. Our success can be attributed to several things: our incredibly unique design, the fact we can sell such a good and well design product for the low price, and the inherently viral nature of our design. The extremely small amount of advertising we have done (under $200 total in our entire 3 year history) did show really great returns. With an advertising budget you could rapidly scale this company to a much larger size. Included in our documentation and consulting call will be information about the marketing efforts that have been successful and how you could replicate them.
Our expenses are limited to the website (which includes the hosting fees), yearly domain renewal, and $10 for gmail accounts. Our current cost to acquire a customer is $8. During the limited advertising we’ve done, we were able to increase customer acquisition by 25% while only increasing our acquisition cost to $9/customer.
We do have loyal customers who have purchased several watches and watch straps. We also receive emails every day from customers who are interested in color options that we have sold out of. Their contact information will be provided with the sale.
We are selling the business because we are moving into a different sector with a brand new company. This company is using a lot of our time. The products are amazing and customers passionate, and we would like to sell to someone who can put the time to continue to grow this brand.
Financials and traffic
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