Importer, Internet Retailer For Sale - San Francisco, California
Ad/Listing Information
|
|
| |
| Status: |
Off The Market |
 |
| Location: |
San Francisco |
|
| County: |
San Francisco |
|
| City: |
San Francisco |
|
|
|
|
| Financial Information |
Detailed Information |
| |
| Price: |
$50,000 |
|
| Down: |
Call |
|
| Revenue: |
$512,000 |
|
| Adj. Net: |
Call |
|
| Relocatable: |
Yes |
|
| Home Based: |
No |
|
| Real Estate Included: |
No |
|
| Bkr To Bkr Coop: |
Call |
|
| Franchise: |
No |
|
| For Sale By Owner: |
Yes |
|
| Asset Sale: |
No |
|
| Lifestyle: |
No |
|
|
Description Of This San Francisco Importer, Internet Retailer Business For Sale:
|
This is a once in a lifetime opportunity to start importing from China and selling products online. The owner of Favo LLC will teach you everything, from start to finish, to start importing and selling online.
OUTLINE:
1) THE BUSINESS
2) WHAT IS INCLUDED IN THE SALE
3) GROWTH OPPORTUNITIES
4) WHY WE ARE SELLING
5) REVENUE AND PROFIT
6) HISTORY
1) THE BUSINESS
http://www.favotech.com
Favo LLC is an importer and online retailer. You can see our product family on our website at http://www.favotech.com. We manufacture products in Asia, and then sell them on eBay, Amazon, and our own website. We have 4 main businesses in order of strength:
LED Signs
Metal Detectors
Money Counters
Massage Products
Car Electronics
The most profitable businesses are the LED Signs, Metal Detectors, and Money Counters. The Massage Products and primarily the foot massagers, do very high volume at smaller margins (10-14% roughly), and the car electronics do higher volume at lower margins (8-12%) but was mostly an experiment. Some of the lesser performing businesses such as selling large Massage Chairs, air purifiers, and In-Dash Car DVD Players, we have liquidated the inventory and taken a loss for 2009.
The LED Sign Business is extremely strong and we routinely field emails and phone calls from our previous customers looking to purchase new units. We sell the same products that another major LED manufacturer sells for a fraction of the price. A new owner could easily take this business to a tradeshow and grow sales by 5-10x overnight. We also have exclusivity with our LED supplier for the eBay and Amazon markets.
All products are well sourced from high performing factories with extremely high quality. Defect rates are low @ 1-4% and we have arrangements with our factories where they will either they will rework defective products that we ship back to them, or they will comp us new units.
The infrastructure works as follows:
a) Order placed with factory / 15-30 day lead time for manufacturing
b) On site QA process (optional but helpful for new factories)
c) Our vendor picks up the products from the factory, takes it to the port, puts it on a boat, brings it to the USA, clears customs, and takes it to the warehouse
d) Our warehouse inspects the products and sends us an inventory report
e) I update our online software to reflect new inventory has arrived
f) Listings are automatally pushed to Amazon, eBay, and our website
g) Sales come in automatically and our software confirms the orders with the buyer, sends them emails with the receipt
h) Orders are fulfilled automatically by our warehouse and tracking numbers are automatically sent to the buyer (this is done using our custom software which significantly reduces error rates)
i) Customers are automatically notified of shipment and feedback on the sale is requested automatically
Currently the owner handles emails and we use a vendor to handle our phone line. I'd suggest either taking both of these in house as you familiarize yourself with the business and then outsourcing it to someone so you can focus on growing the business.
2) WHAT IS INCLUDED IN THE SALE
- Our 4 main business lines
- All brands that we currently own: Hakiro Masage Products, GoldDust Metal Detectors, StarBurst LED Signs, and TurboGear Car products
- All inventory currently valued at ~9,000 (this may fluctuate downwards before the sale as sales come in)
- All listings, logos, pictures, ad-copy, and videos
- Our automated infrastructure including custom software
- Relationships with our main vendors (freight forwarder, warehouse, and fedex) by phone introduction
- Relationships with our main factories including email introduction and if desired, on site visits in China
- The "crown jewels" -- my spreadsheet of 400 different products, already mapped out for you to start selling
- My supplier list which includes an additional 100 factories that have products to sell at a profit, ready to go
- A highly coveted secret of mine, which will allow you to see the supplier list for any importer in the USA. Expand into new businesses overnight by buying from the same places that others do.
- Custom software developed under owner's guidance. Developing this normally would cost over 10,000 but the owner is a software engineer and was able to do it for a fraction of that price. The software takes orders and automatically generates labels. Significantly reduces error rates and order fulfillment time.
- Custom templates and designs created by Diztinct, one of the web's leading design agencies. Leads to higher conversion rates for the website.
- Our eBay and Amazon names are included, as permitted by eBay and Amazon. In full disclosure, as we have wound down the business in 2010 for a sale, our customer service slipped and we received some negative feedbacks on both sites. As a result, our Amazon account is currently in limbo (on hold because of Policy violation, but we haven't appealed). Therefore, I'd suggest starting new accounts for both sites or you can take ours and hold them until the feedbacks roll off over itme. It is your choice.
The owner is willing to sign a 2-year non-compete and stay on for 90 days available by email and phone for any support or questions. The owner will also meet with you in person for up to 3 business days to train you. If you buy the plane ticket, I will meet you anywhere in the USA to train you.
The business is relocatable, if you can locate warehousing or space to do the fulfillment for the products or can be operated completely remotely.
3) GROWTH OPPORTUNITIES
A new buyer could easily grow this business by doing any of the following:
a) Setting up an affiliate program
b) SEO the website
c) Adding new product lines
d) Supplying resellers through a wholesale program (via tradeshows)
We use working capital of about 150,000 that fully operates the business including all day to day expenses, and purchasing of new inventory
4) REVENUE, PROFIT, AND EXPENSES
2007 REVENUE: 103k
2008 REVENUE: 648k
2009 REVENUE: 511k
Our declared profit fluctuates over the years. In 2009, we wrote off many of our underperforming business units and took a loss. What remains are the strongest pieces. Overnight, the new owner will own a very profitable business with well developed product lines.
From revenue, you take approximately 50-60% for the wholesale price of the product, 10% for eBay/Amazon/PayPal fees, 10% for shipping, 10% for software -- the rest is profit.
Our recurring expenses are:
a) Software: We use ChannelAdvisor which handles inventory, sales, orders, and listing management across all of our sales channels. This is 600-1000 / month
b) Warehousing: The minimum monthly charge is 500 which is VERY cheap. We currently have some of the best warehousing prices around at 4 per 4' x 4' pallet and then 5 per shipment. They ship SAME DAY for orders before 2pm PST.
c) Phone line: We pay about 200 / month fluctuating plus or minus 100 depending on volume
d) Hosting is around 25 a month for our custom software
Then sales related expenses are:
- eBay, Amazon, and PayPal fees
- Google advertising
- Shipping
5) WHY WE ARE SELLING
The owner would like to sell for the following reasons:
a) To enjoy more free time and travel
b) He currently works for a major company, and would prefer to focus on his day-to-day duties
c) The owner has an equity stake in his primary company that dwarfs the value of any other businesses
6) HISTORY
Founded in 2004, Favo LLC began importing laser pointers from Taiwan. Then, by leveraging on the ground connections in China, we developed relationships with factories. The business has grown quickly ever since.
---
CONTACT INFORMATION:
Please email andy at sales@favotech.com with your name, location, phone number, and email address. He will provide you with a non-disclosure agreement to sign by email. Please sign and fax back with the instructions provided.
The owner is looking for a quick sale, and will sell to the first owner that meets the minimum reserve price.
|
Importer, Internet Retailer For Sale And San Francisco Region Related Links:
San Francisco Regional News & Tips For Buying And Selling Businesses
 |
Coin Laundry Consultant & Broker Chuck Post Discusses Coin Laundry Valuations
Chuck Post a long time coin laundry consultant and laundry broker discusses in his latest article - the factors of appraising California coin laundries. Chuck claims, "The coin laundry is an all-cash, necessity of life service business. What could be better? Yet, understanding how the business justifies such a high purchase price is baffling. In fact, many times the value is so misunderstood that it results in investors over-paying. Sometimes grossly over-paying." Read this article and see what factors go into the pricing of California coin laundries. |
|
Bankruptcy Sale - 8 Locations - Sizzler Franchise Auction: Wednesday 2/29/12
National Franchise Sales has been retained by the bankruptcy Estates of FORBCO Management Corporation; FORBCO Sizzler Partners, LP; W&J Higgins Investments, LP and L&G Restaurants, LLC to sell eight (8) Sizzler franchised restaurants in Southern California on February 29, 2012. Call 949.428.0480 for more information. |
|
Lee Petsas, Broker Chats About Deposits With Purchase Agreements - Tips & Guidelines
Lee Petsas, discusses purchase agreements when buying or selling a business in his new article on BizBen, "Rules And Guidelines About Deposits With Purchase Agreements". Lee discusses: How much consideration should I give as deposit? Are Deposits refundable and when? Cashing Deposits and Opening Escrow, Return of Deposit to Buyer, Why do we take a deposit from a buyer when preparing and executing a Purchase Agreement Contract? |
San Francisco Regional Upcoming Events
San Francisco Regional Businesses Wanted To Buy
|
Business Buyer Seeks: Education, Lifestyle Improvements Or Services Related Businesses
Buyer seeks Education, Lifestyle Improvements Or Services Related business for sale in the Santa Clara, Santa Cruz And Placerville areas with an adjusted net income in $75K+ range. Purchase price up to $200K. Buyer has $100K or less down. SBA loan assumption or new is option. Please email this buyer with any potential business for sale matches. For complete information about this buyer (contact info, etc.) please log into your BizBen Account. To post a business wanted to buy request go to the BizBen Buyers Program now. |
|
Business Buyer Seeks Financial Advisory Company In LA County (Or Can Be Relocated)
Buyer looking to buy a financial advisory businesss in the Los Angeles County Area or one that can be relocated to his area. Buyer has $150K for a down payment (cash), has approximately $150 in available home equity, and is looking for a financial advisory business priced between $500K and $700K. Has direct work experience in this industry and has been SBA Pre-Qualified for financing. Buyer seeks to acquire this type of business immediately. Please log into your BizBen Account to see more info about this buyer and their contact information. |
|
Buyer Seeks Food Franchise, Preferably Subway - SF, East Bay, San Mateo, Marin Counties
I am looking to purchase a food franchise in San francisco, San Mateo or Marin Counties. Would also consider parts of the East Bay. I have been approved for financing up to $500,000 and have about $150,000 cash for down payment. I am looking for a business that I can manage / work in full time and net after financing around $100,000 annually. More information about this motivated business buyer (contact details) can be found by logging into your BizBen Account. |
More San Francisco County Information For Buying & Selling San Francisco County Businesses
|
Importer, Internet Retailer Business Opportunity For Sale, San Francisco, California, CA | BizBen
Email This Info To An Associate Or Friend
Let BizBen expert advisors
provide the support you
need to successfully buy or
sell a California business.
Let us help you create a
custom strategy:
 |
Advertising &
Selling A Business |
|
Searching &
Buying A Business |
|
Business Network
Solutions |
 |
Need Assistance?
888-212-4747
866-270-6278
|
 |
Questions? Check
out our FAQs. |
Sell Your
Small Business
BizBen connects you with thousands of buyers who use BizBen exclusively when looking to buy a business in California.
New Listings
Sign up for new listings via email.
Subscribe now!
We Accept
We're Secure
|
|
Save This Listing
