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$75,000 USD

LTHR Supply

lthrsupply.com

Appears in Fashion and apparel , Connecticut, United States, Established businesses, Medium Business, Businesses using Shipstation for Sale, Inventory, Highly Profitable businesses, Business and Franchises under $100,000

General description

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

Like many retailers, orders fluctuate around holidays. Our products tend to sell most during October-December and again during the summer months. The average profits and orders are true averages. However with advertising you'd be able to have considerably higher sales during the time periods outside those 2 most active ones explained above.

Average profit/month

$1,800 USD

Average overall profit margin

84%

Average number of sales/month

10

Value of inventory

$15,000 USD

Average Monthly revenue

$1,178.76 USD

Average Monthly traffic

900 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

Details have been explained above but please ask if you have any questions.

Expense item

Cost

Shopify plan

$79.00/month

Domain

$1.00/month

Inventory

Details have been explained above but please ask if you have any questions.

Located in Hartford, Connecticut

Willing to ship inventory

Willing to transfer relationships with suppliers

What’s included in the sale

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

Social Media

Facebook

instagram

Instagram

lthrsupply

Social media followers

4,600 people

Q & A

Do you work with any employees, freelancers, or contractors?

We have freelancers who are ready to help with visuals, marketing collateral, website, graphic, product and packaging design. They are not on retainer so you can choose to use them as you need or not at all.

We have an arrangement with the factory (which would transfer to you) where they will take your designs and convert them into the appropriate designs needed for production. This is a very costly process and will save you a lot of money.

Why should someone buy this store?

Someone should buy this store because this is an excellent line of products that customers are very interested in buying, and with some effort and investment in advertising it could generate very large revenues.

The watch industry is inundated with $200 watches that are all clones of each other. This company has produced a product in that price category that is truly unique. This fact is extremely unusual in this market and with investment in marketing/advertising, you would be positioned to capture a large market share.

Also, if you have interest in the fashion or watch market, this is your chance to skip all the hard work of designing and sourcing watches and buy a turnkey watch company.

How can the future owner improve the business?

The only improvement this company could really use would be investment in advertising. As mentioned above, we have put virtually no money into advertising up to this point but still have seen significant growth over the years. With advertising you could improve the business’s revenues significantly.

The description will shed more light on the what could be done for the business.

What work have you put into the store?

We have put a lot of work into the store. The current design is the third iteration of our website which we’ve fine tuned over the years to convert best with the audience that typically busy our product. We have brand strategy and visual design backgrounds and have built a scalable, responsive and robust ecommerce experience. We have also optimized it to function on mobile because 60% of our sales are through mobile.

The description will shed more light on the work we’ve done

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

5 hours

$75,000 USD

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