Firearms Parts & Accessories – 26% Net Profit Margins – $200 AOV – Full Manufacturing Facility

Asking Price:
$575,000
Sales:
$905,007
Multiplier:
2.4x
Earnings:
$237,802
Year Established:
2021

This eCommerce brand is a full manufacturing facility producing custom-made slides and reselling parts for Glock handguns, arguably the industry’s most popular firearms. Sales are made primarily on a newly launched Amazon storefront and via the company website, accounting for 70% and 30%, respectively. Additional revenue is derived from eBay, where the brand boasts a 98.5% positive rating. Across 25 brands and a broad catalog of SKUs, the business achieves a $200 Average Order Value and an excellent Repeat Purchase Rate, resulting in a $1,200 Customer Lifetime Value. Due to the owner’s desire to retire, the company is listed at a highly attractive multiple and includes considerable inventory worth $200,000, presenting a rare acquisition opportunity.

During a typical week, operations look as follows. CNC machine parts are selected from bar stock, after which they are deburred, passivated, and sandblasted. Parts are Cerakote finished, inspected, and packaged. All online stores’ inventory is updated based on output, and customer emails are answered. Orders are dispatched daily, and any reselling inventory is replenished.

Finally, invoices are paid. One contractor built the website and handles graphic design for new listings when necessary. There is enormous room to scale this business through straightforward methods. Aside from organic Instagram content, virtually no digital marketing has been performed. This demonstrates the appeal of the product range but also presents an enormous opportunity for a buyer to immediately boost sales through aggressive social media campaigns, refined email efforts, and PPC on Google and Amazon, to name just a few growth avenues. Moreover, a new owner should consider purchasing an additional CNC machine to reduce COGS and double production.

From there, boosting sales on Amazon and the website is low-hanging fruit. Attending trade shows has proven highly lucrative for many brands in this niche and is an enticing prospect. Finally, introducing new products by obtaining FFL to sell slides on the frames and to resell firearms from distributors would appeal to a broader audience, increase LTV, and facilitate upselling and a higher AOV.

Glock handguns have solidified their place in American gun culture, and their popularity fuels the demand for aftermarket parts. eCommerce platforms are hotspots for enthusiasts seeking personalized components, ensuring a constant market. As the firearm industry evolves, the demand for Glock accessories persists. Subsequently, under capable management, this business is poised for continued profitability and growth and is anticipated to deliver a swift return on investment.

 

Listing ID: SF237

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