Successful Internet Based Retailer of Dolls House Furniture For Sale

Business description

Successful Internet based Retailer of
Dolls house Furniture and Miniature products

This successful and growing business was founded by the vendor in 2003. In 2006 the operation was re-branded and has since established a very significant online presence with a reputation for the quality of its products, flexibility of service and reliability.

The business operates from a beautiful village location on the Norfolk, Suffolk border. The business could easily be relocated, although the vendors would consider selling the freehold of their property to a potential new owner. The operation has established itself as a reliable independent online and mail order retailer of dolls house accessories and miniatures. Initially started from a hobbyist’s point of view. The business has grown to supply a product range of over 6,500 separate items to customers in the U.K. and internationally.

The business is supported by exemplary relations with key suppliers and this commitment to supply chain relationships has underpinned the business’s abilities in product quality, speed and flexibility of supply, and business growth.

The custom designed database driven website stands out for its design and streamlined approach to processing orders and payments. This in turn allows the owners of the business to meet the demands of customers in a timely and effective manner with ease. Not only is the website very easy to use for customers, the company invested in quality search engine optimisation which has proved very successful for the business. Advertising is predominately with Google “Adwords”, with a small budget on Bing together with a product feed to Google.
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The business supplies quality products from Europe and the U.S.A. together with cheaper ranges produced in China. Alongside the huge product range they have built-up, the business has also developed their own brand products, which show an even greater profit margin, and great potential for the future benefit of the business.

Equipment:

Being very much a modern e-commerce company, the operation is run from desktop computers. The business uses the SAGE protx payment processing system, which has recently been re-branded as SAGE pay. The business can also accommodate payments via Paypal and Streamline. The stock is held on racking, which takes up approximately 500 sq ft of storage space.

Customer Service:

The vendor takes great pride in the company’s reputation for superb customer service. Although the web provides a very user friendly sales experience, the vendor will go that extra mile to achieve customer satisfaction, taking customer orders and enquires over the phone when required. The business offers a 28 day returns policy with a money back and free exchange guarantee. There is free shipping for orders within the UK over £35 in value, with a minimal shipping fee for smaller orders.

The website is completely secure and utilises the very latest technologies to ensure customers information and details are safe and transactions secure and speedy.

Key Strengths:

The business has a superb cash-flow with orders only placed when funds are available. Stock is all paid for and all accounts paid on time taking advantage of settlement discounts. There is a wide ranging customer base, who have shown strong loyalty once they have been acquired. The current marketing is bringing in 20-30 new registered users per month, which should easily continue. With the time and expense already completed to achieve over 9000 registered users, and over half of these supplying their e-mail address which can be utilised for on-going marketing, the business is very well placed for growing turnover and profits without high levels of investment or overheads.

Financial Information:

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

The business has shown month on month, year on year growth since inception. With a margin of around 50%, and recent turn-over circa £145,000 per annum. The company has continued to re-invest profits in further stock, which currently stands at approximately £46,000.

The assets of the business including the costs of acquisition of the customers on the database, and the investment in the website and support software are valued at approximately £30,000.

Property information

Location:

Currently located at the vendor’s residence. The business is operated from a widened garage storage area to the side of the building and a small office area within. The residence is a very well presented 3 / 4 bedroom cottage. There is a large area of land, and a recently added conservatory. Located in a small idyllic village on the Norfolk / Suffolk borders. The vendors would consider selling the freehold with the business, ( Current market price to be advised, if requested). The potential new owner could enjoy the entire lifestyle business package.

Other information

Expansion potential:

With around 20% of the customers based overseas, the business can actively market internationally to capitalise on this huge potential. There is also potential to supply to other distributors and retailers both domestically and internationally. The vendors previously had a “shop-front” on eBay. While this was profitable, the owners felt they could service the added responsibilities this brought.

Competition / Market:

Originally the business advertised in hobby magazines and specialist media. The business has cut back on this, and focused on internet optimisation and direct advertising such as Google Ad-words. The operation is also fortunate enough to have built a large detailed database of customers to whom they can market directly and very cost effectively. The company also takes the opportunity to send promotional leaflets with all orders dispatched.

Support & training:

The vendor will provide all necessary training and all relevant contacts to allow continuity of trading.

Reasons for selling:

The business has grown rapidly from a small lifestyle business, to an operation that takes more time than the current husband and wife team would like to offer. They would like to hand-over the business to an owner who can further develop the company, and devote a new level of energy to take things to the next level.

Trading hours:

The website takes orders 24 hours per day, 7 days per week.

The vendor and her husband work flexibly, devoting around 5 hours per day, Monday to Friday, to maintain the business administration and operations.