SellerForce® presents an SBA Pre-Qualified Brick & Mortar business that has been operating in the antique furniture industry for over 20 years. Based out of New Orleans, LA, they have developed a strong local following, and have even grown to the point of being featured in industry publications such as Southern Living Magazine.
Their products are obtained from a supplier in the Netherlands and are sourced from regions all over Europe, including France, England, Belgium, Italy, and Greece. They also offer new home furnishings are purchased online from suppliers in China and Egypt, which provides their customers with authentic pieces from all over the world to decorate their homes with.
The antiques from Europe and Egypt are selected specifically for the brand, making their products all the more valuable, and items such as chandeliers, lanterns, and mirrors from Egypt are exclusive to them.
Their status as a wholesale supplier to the public also means that there is minimal competition to contend with, and no direct competition for their custom furniture offerings in the city of New Orleans. They are able to achieve substantial gross margins through their strong DTC revenue rate of 75%, with the rest of their sales being wholesale.
The company has built up an Average Order Value of $1,000 thanks to the quality of their pieces, with the price of each SKU being about 300% markup of the purchase price. They enjoy 54% average gross profit margins, and 42% average net profit margins, and see little seasonality through the year, as furniture sees a demand year-round. Their customers also tend to come away highly satisfied with their purchases, as the brand boasts a less than 1% order return rate.
The current owner’s tasks consist primarily of managing imports, sales, orders, and employees. Outside of the owner, the company has two sales/marketing employees, as well as three warehouse employees, who are responsible for loading, unloading, cleaning, repairs, and furniture building.
Though the company’s brick-and-mortar storefront has proven successful over the past 23 years, the buyer could rapidly scale in both size and profits by expanding to the digital sphere and establishing an eCommerce store. Online marketplaces like Wayfair, eBay, Facebook Shops, Overstock, YouTube and
more would make their products accessible to consumers outside of the New Orleans area, broadening their reach and reputation in a way that they haven’t seen before.
They could also launch their own independent website, giving potential customers a better idea of the brand and giving them a one-stop shop to buy from. The buyer could then advertise these new digital platforms to local and national customers alike through expanded social media campaigns and Facebook Marketplace.
They could also increase eCommerce opportunities through replenishable home furnishings from Egypt and China-based suppliers, making these new channels easier to maintain and supply for. They can continue to grow their local store throughout this by leveraging a consignment-based inventory model for local suppliers, as well.
This seasoned acquisition is a tried-and-true name of their area, and with an ambitious buyer, they can skyrocket and share their wonderful products with the entire nation.
Contact SellerForce today for more information from our brokers.
Listing ID: SF199