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Online Raffle Company Offering High End Luxury Items For Sale

London, UK
Asking Price:
Under £50K
Turnover:
£200K - £500K
Net Profit:
£50K - £100K

Introduction
This is an online raffle company offering ‘high end’ and luxury items. The business has been built over the last 13 months with no expense spared in its construction; coupled with meticulously planned and thought-out systems, this business is truly a step above its rival’s and would present any buyer with an incredible and unique opportunity to make profit from day 1 of ownership.

Having just gone through an explosive launch process this business is presented for sale to this highly lucrative and extremely popular market, poised for a new owner to step in and start trading immediately. This is not an opportunity to be missed.


Website:
All raffles are run through the company’s website. The website has been designed and built to give it a premium look and feel, informative and easy to navigate it presents the brand perfectly, and the prizes on offer. Strategically placed CTA’s and easy to understand instructions for the user. Separate pages showcase products and previous winners, FAQ’s and dedicated My Account section.

It features a Prove Source pop up which shows users in real-time what other products people are buying. It has ‘Trusted Site’ accreditation for user peace of mind, email sign up options which are automatically linked to mailchimp to create marketing lists.

Showcase featured, new and products on sale. Countdown timers, guaranteed draw literature

Separated categories to organise prizes of a particular genre.

Full back-end access to include multiple unique features have been added to the website, to include: random number picker, manual number picker, product cross-sells and upsells, complete autonomy of discount codes and site credit. The site is currently set up to automatically allocate accounts £10 of website credit when they spend over £100 in any time period, which is great for client retention and loyalty in a growing market.

Shopping cart and check out linked to merchant account and payment provider through a market leader that is capable of tokenisation (stores users card details for returning customers).

A particular feature is the integration of PayPal, only just launched by one other competitor and is a real-world advantage over other raffle companies.

There is also a subscription service built into the website, although not yet utilised this can be launched by the new owner – a very lucrative service not currently on offer by competitors.

Built on a WordPress platform it gives the new owner the autonomy to make any changes if desired.

The website has been tested at 10,000 visitors and is sound with no pressure at all.

Domain name (and owned similar names) and email addresses are also included.


Draw Machine
Included within the sale is a state-of-the-art random ball machine, unique to this business this machine is capable of running draws with up to 99,999 entries! The majority of other competitors use Google random number generator which is always a cause for controversy with their followers and players, others use less practical less favoured ball machines.

The five separate chambers give a clear and fair winner every time, this guarantees authenticity to the user and ensures trust in the brand.


Legal
At the beginning of the build stage, we instructed PromoVeritas; they are world class leaders in ensuring that prize promotions are run legally and fully compliant and work with global brands such as Barclays, Nestle, Adidas, Amazon and many more.

They have built a set of Terms and Conditions and a Privacy Policy for the company that are on the website. Before launch PromoVeritas carried out a full assessment of the website and associated systems to ensure we are fully compliant with all laws, legislation and Advertising Standards Authority.

This is an essential part of the company that has been carried out to the highest standards possible to protect the future of this business.

Further guidance and information can be passed to the new owner.


Marketing
Social media driven is the only source of marketing utilized thus far. At time of writing our Instagram page has 8547 followers and Facebook 732.

Both pages are active and posted on daily.

Instagram has been our focus of growth over the past 12 months or so and we have actively built the page following to target a demographic that expressed an interest in entering competition/raffle companies.

The Facebook page has had little promotion, but the followers are growing organically.

Linked to the Facebook page is a messenger bot with nearly 2000 contacts. Messenger bots have an insane open and click through rate.

Mailchimp has also been integrated to automatically capture marketing lists, currently circa 1300 contact details who have specified are happy to be contacted with details of new competitions.


Finances
Website (cost to us) £10,802.95

Draw machine (cost to us) £8468.00

Legal set up & compliance (cost to us) £6612.00

Instagram page (estimated) £25,000.00

TOTAL: £50,882.95


Opportunity
This business is ready to be grown by a new owner from the very beginning. Expected mark up across all prizes as an average percentage is no lower than 35%, other companies run on circa 40-45% so this leaves room for adjustment depending on whether competitive odds are desired or more profit margin potential. Typically different value prizes would have a different margin applied. From in depth research over the last 12 months we will supply the new buyer with a table of price brackets of the value of the prize with the corresponding percentage to apply. This business launched its first raffles on 6th march 2021 with an overall margin of 35% based on RRP (including cash), total prizes launched have a value of £15,140. However, its important to note that it is possible to source prizes for below RRP, as is the opportunity to enter into a 'raffle contract' with suppliers and split profit to reduce risk. This is something that we have not yet seen competitors do and for confidentiality this can be discussed further with the new buyer.

The company has launched and currently has prizes live on the website – tickets are selling every day. The directors are exploring the idea of a sale due to a change in both personal and business circumstances since the start of the company build but have nevertheless carried through to launch to fully test and prove its worth.


Next Step
Offers in the region of £50,000 are being invited. Ongoing handover support is available for a negotiated period of time after the sale. All original web developers and partners utilized during the build can be introduced if required by the buyer.

For more information, please contact us by using the form below.

Business Operation

Trading hours:

24/7

Years established:
1

Other Information

Furniture / Fixtures value:
£10,000
Home based:
This business can be run from home.
Relocatable:
This business can be relocated.

Contact Seller

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