Blue Tees Golf is an eCommerce store that sold on Flippa in October of 2019 after just 14 days being live on the marketplace. What made this business so captivating? Why was an acquisition entrepreneur ready to swoop this up with such urgency? Well, there is never one simple answer to these questions. It really comes down to a mix of benefits that stood out within the listing and throughout the due diligence process.
The Company Stats
- This eCommerce store had been around for just over 1 year.
- They were generating a net profit north of $9,400 / month
- Monthly revenue was a touch above $48,000 / month
- Traffic was seeing 37k+ page views and 21k+ unique visits / month
- 75% of traffic was being driven through social channels
- Roughly 25% of revenue is driven through Klaviyo
- 1.5% Return Rate
- 57% Profit Margin on Amazon Account
- 300+ custom photos / graphics and 40+ custom videos
The Flippa Listing Stats
- Listed on October 10th, 2019
- 189 Watchers
- 8,082 Views
- 15 Discussions (3 highly engaged)
- Reserve Price: $185,000
- Buy It Now Price: $160,000
- Sold on October 24th, 2019
Why Was This Company In Such Demand?
It essentially just comes down to the fact that it is a legitimately great business.
Founded by an avid golfer, the entrepreneur who began this business saw that there was a space online for high quality golf accessories sold at great prices. He spent time building a brand that had a stunning website with extraordinary imagery and high quality, custom videos that could be used for merchandising and marketing. They had over 300 photos and over 40 videos in total.
In addition to the products being high quality and merchandised well, they were actually shipping in-house opposed to drop-shipping from another country. Beyond giving them access to exceptional customer service and fast turnaround, this allowed the company to ship their product with high end, custom designed packaging, adding to the overall experience of the brand. This is a point that can easily be neglected as it does cut into margins, but it also creates return customers and helps worth of mouth marketing.
The company focussed on products that sold. Their first well received item was a Golf Laser Rangefinder. Something a bit more unique and niche that had a high capability for targeted ad spend opposed to more broad categories like golf balls or golf bags.
The second products that began to take off were their wedge sets and a putting mirror. Again, something a bit more niche than what the casual golfer is looking for, something extremely targetable and with limited competition.
What Made The Flippa Listing Sell So Quickly?
A number of things helped this site sell, but of course it all starts with having a great business that is priced accordingly.
While this company was doing fantastic sales, at only a year old, it is hard to value things too high as there isn’t a lot of proof in the success. This seller was happy to make the deal for a 1.4x annual profit multiple which felt fair to the buyer, leaving both with a sweet taste in their mouth after shaking hands, transferring assets and going their separate ways.
Secondly, the seller did a stellar job with the listing, providing in depth insight about the business, how they generate revenue, and how the operations work. While every potential buyer certainly has their own questions that they’ll want to ask, providing as much basic information as possible right up front will help people get excited to start that conversation.
And of course, finally, conversation is what counts. The seller was incredibly responsive, having in depth conversations with several prospective buyers, even setting up Skype calls or otherwise. Being attentive to the listing is as important as anything else as a potential buyer is only interested in working with a responsive individual. As we sometimes say, doing a business deal is a bit like getting married. Communication is key.
If you’re looking to find success on Flippa and make a great deal for the business that you’ve built, it’s important to put time into building something fantastic, price it right, be sure to create a great listing, and be communicative.
How Should You Price Your Business?
Have a chat with our little buddy, the Valuation Bot, to find out what your business is worth based on years of data that we’ve collected here at Flippa.