SellerForce® presents a truly remarkable market veteran of the tools and machinery market that has, over the century since their brand was founded, built their SKU count up to a breathtaking 20,000. The company comes from humble beginnings, having been founded in 1918 by an immigrant fleeing the conflicts in Europe. He ran his business from the kitchen table, and, day after day, brought his tools with him to the New York jewelry district, determined to carve out an honest living for the benefit of himself and his family.
This company yields steady and reliable profits even during economic downturns. Mostly running itself, the work week is minimal, requiring only about 2-4 hours a day. There is almost no overhead, minimal inventory, no shrinkage or theft problems, and no labor problems. Most profits come from exclusive products that have huge markups.
The founder’s hard work paid off and led to this budding brand growing into a sensation within its industry. In the first 50 years, the company hit $3.5 million in sales, built up over 1 million in inventory, and reached the number of SKUs they now comfortably sit at today. They even managed the valuable feat of international expansion, with branches in Canada and Israel, affiliates in England, Spain, and France, and 3 dozen employees in their New York-based office.
The company’s current leadership, a third-generation owner, made the decision to change up the business model roughly 30 years ago. He did this by moving the catalog online, optimizing the size of the team, and reducing inventory to the most profitable and exclusive products. This move proved to be incredibly successful as it gave the company a much broader customer base and leaner, more efficient operations overall. Some of the benefits now enjoyed include minimal overhead or operating costs, minimal inventory, no labor union or labor concerns, zero theft or shrinkage, and no bad debts.
The current owner also has a very comfortable workload, as they have no commute and require a mere 2 to 4 hours of work every day to manage the business. Despite how light their daily operations are, the owner sees a substantial reliable income that they can either keep as is or use to scale the brand, depending on their own preferences. As the company emphasizes the sale of exclusive proprietary products, the buyer can look forward to continuing high-profit margins, low competition, and fantastic results overall.
The company operates mostly off a DTC model, though it does make 10% of sales from an Amazon storefront. The customer satisfaction rate has yet to slow down or decline over the years and still sits at a comfortable 95% to this day. In fact, the lifetime value of certain customers is well over 30 years, which serves as a testament to the sheer quality of their products: especially when one considers some of the customers that they serve. It’s also worth noting that they have had little need for a marketing campaign, with all sales being generated through either organic or repeat customers.
The customer base is rather diverse as it ranges from private individuals and small companies to Fortune 500 companies to government agencies. The company’s products are useful for many different types of businesses or hobbyists. Sales are primarily in the US and Canada, but the company sells worldwide to all continents except Antarctica. Sales to Mexico are generally shipped to Texas border towns.
This acquisition is a great success story waiting for the right buyer to come along and carry on the century-old legacy.
Contact SellerForce today if you think that might be you.
Listing ID: SF183