{"id":9557,"date":"2021-12-18T05:40:04","date_gmt":"2021-12-17T19:40:04","guid":{"rendered":"https:\/\/flippa.com\/blog\/?p=9557"},"modified":"2021-12-18T05:40:06","modified_gmt":"2021-12-17T19:40:06","slug":"featured-listing-eedas-atelier-beauty","status":"publish","type":"post","link":"https:\/\/flippa.com\/blog\/featured-listing-eedas-atelier-beauty\/","title":{"rendered":"Featured Listing: Eedas Atelier Beauty"},"content":{"rendered":"\n

About the business<\/h2>\n\n\n\n
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View the listing on Flippa<\/a><\/div>\n<\/div>\n\n\n\n

Tell us a little about yourself. What\u2019s your background? How did you start the business?<\/strong><\/p>\n\n\n\n

When I started this business in 2015, I was a practising makeup artist. The majority of the available cosmetic brands, at the time, offered premium-priced products that were relatively expensive for the average makeup artist. It was hard enough that artists were struggling to earn a decent living by offering makeup as a service but the high priced products and tools made things even more difficult. There were not many individually-owned brands and it was a huge gap in the market.<\/p>\n\n\n\n

I must admit that I had no prior business knowledge when I started, I just knew that I had identified a problem and I was eager to fix it. So I did some research, found high-quality suppliers, sold my first car and launched the business with 100 sets of makeup brushes. Sales did pretty well with zero marketing budget but my inexperience caught up with me as I had messed up my pricing and I could not account for any ROI. Before I knew it, the business had failed and I was devastated.<\/p>\n\n\n\n

I took a break from the business, which gave me enough time to plan and prepare. In this time, I met my partner, who became a co-founder and brought in his vast knowledge of financial management that has helped the business thus far. We restarted the business again in 2019 with 12 colours of cosmetic glitters costing less than $500. We have generated over $150,000 in revenue ever since and expanded our product line with $68,000 worth of inventory available. Considering the affordability of our products, it is such a big deal that we have come this far.<\/p>\n\n\n\n

As an eCommerce business<\/a>, where are your products made?<\/strong><\/p>\n\n\n\n

Most of our products are sourced in bulk from different suppliers in China, packaging sourced in both China and the US and they are currently assembled in Los Angeles CA. Only one of our products is sourced and produced in the US because we developed the formulation for this product in-house.<\/p>\n\n\n\n

What can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)<\/strong><\/p>\n\n\n\n

Considering the low prices of our products, which is the idea behind the brand, we have more volume in sales than high cost. Our average AOV is approximately $43, max CLV is approximately $240 with an average of $80 CAC is approximately $20. Hence, the ratio of average CLV to CAC is 4:1 and can get as high as 12:1.<\/p>\n\n\n\n

How have you marketed the product and where are your customers originating from?<\/strong><\/p>\n\n\n\n

We use various marketing strategies to acquire new customers and retain existing customers, including Facebook ads, Email\/SMS marketing, influencer marketing (unpaid), affiliate marketing (available to everyone), and content marketing. Over 90% of our customers are based in the United States and Canada, although we’ve had a few orders from Australia, France and the UK. The person who will buy the store can scale more with: better SEO, influencer marketing (paid), other types of social media ads, especially Snapchat ads, TikTok ads, and youtube ads. There is also room for expansion to other parts of the world, as the products are relatively lightweight and easy to ship via USPS.<\/p>\n\n\n\n

Is the asset on your listing owner-operated, how much time does it take to run the business, who else is needed on the team, and what is automated?<\/strong><\/p>\n\n\n\n

This business is currently owner-operated. We have different personnel working on different things, so work varies per person. As the business owner, you would need approximately 30 – 60 minutes a day to check up on the business performance and see how work is going, which is about a maximum of 5 hours per week.<\/p>\n\n\n\n

We have a customer service\/social media manager whose job is to answer all our client’s emails (shipping updates, returns, loss of parcel) and social media inquiries and posts. Our cofounder works as the marketing manager\/business analyst managing all our ad campaigns and improving business performance. Another person is responsible for order fulfilment.<\/p>\n\n\n\n

So if you decide to buy this business, you will do well with a small team of 4-5<\/p>\n\n\n\n