Website Closers® presents a general gunsmithing, modification, OEM firearms sales, and Cerakote services company that also manufactures a proprietary handgun, full auto parts for Glocks, and converts AR15 lowers from semi-automatic to fully automatic.
Key Valuation Points
This business holds a prominent position in the industry owing to a combination of factors that serve as key valuation points.
At the heart of its success lies a trademarked proprietary brand that sets it apart and instills recognition and trust within the market. The brand’s identity is bolstered by a renowned best-selling proprietary handgun, which offers a unique and differentiated product in a highly competitive landscape. This range of four base models and select fire options for Glock pistols gives the company a distinct competitive edge, securing its place as an authority in the vertical.
With a track record spanning over 12 years, the business is well-established and has cemented itself as a stable and reputable player in the niche. Its longevity is a testament to product and service reliability and a commitment to quality, building further trust with past and prospective customers.
One standout valuation point is the impressive average order value of $4,000. This high-ticket value demonstrates the ability to generate substantial revenues from each customer interaction.
Furthermore, consistent year-over-year growth, despite volatile economic conditions, highlights a robust demand for the products. This resilience in the market indicates management’s ability to adapt to changing circumstances and the consistent appeal of the offerings to a broad audience.
The brand’s unique manufacturing processes and exclusive production of various guns and parts ensure the quality and integrity of its products. All items are made to order, reflecting the company’s commitment to customization and individualized solutions, further strengthening its appeal and boosting customer loyalty.
Marketing, Sales, & Customer Base
Marketing encompasses various strategies, including partnerships with YouTube influencers, sponsorships for competitive shooters, and creating organic content on Instagram. While these efforts are relatively modest in scale, they consistently draw in approximately 20,000 monthly visitors to the website.
Around 90% of revenue is generated through the eCommerce platform, with the remaining 10% coming from wholesale orders. Notably, this wholesale arm has the potential for considerable growth that could be fully realized with the addition of more staff to accommodate order demand.
The typical customer has a deep appreciation for the handcrafted nature of the products. They make three purchases on average, highlighting their satisfaction and brand loyalty.
Inventory, Fulfillment, & Operations
Usually, the company dispatches between three and five orders daily from its 2,000-square-foot warehouse. However, due to the custom nature of the business, the volume of shipments can vary significantly.
Management aims to maintain approximately $60,000 of inventory in completed firearms and an additional $140,000 of parts. Orders are placed monthly on Net 15 and 30 payment terms, providing an efficient financial structure.
The owner works full time, undertaking numerous tasks, including CNC machinist, senior gun builder, sales, customer service, and website design.
Two full-time employees work as a gun builder and a customer service representative.
Presently, there is a notable shift in consumer purchasing preferences, transitioning from polymer frame guns to hammer-fired pistols, such as the brand’s flagship product. As an increasing number of customers embrace this shift, combined with the business’s strategic pricing and feature-rich product lineup, the growth potential is boundless for a prospective buyer with the necessary resources. The only current constraint on sales growth is the owner’s liquidity.
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