FOR SALE: 4Gauge.com - Private Label Pre-Workout Supplement Business
Here are the TOP 10 things you should know about this business...
- It sells its own brand of a unique private-label pre-workout supplement (i.e. sports nutrition supplement) called 4Gauge. It has unique packaging (with a unique bottle cap made in the USA) that looks like a shotgun shell. No other business sells this unique product!
- Over the past 12 months (August 2019 - July 2020), the business generated $562,714 in revenue and $127,321 in net profit, as you can see in the P&L and Financial Information section below. That's an average net profit of $10,610 per month.
- The business has a very solid 24.0% net profit margin. That means that for every dollar of revenue the site brings in, 24 cents make it to the bottom line and into the owner's pocket!
- The 4Gauge.com website has a very favorable and well-diversified traffic breakdown. The top 3 traffic sources are: 1) Paid Search (24.9%), 2) Referral/Affiliates (24.3%), 3) Direct/Repeat Customers (19.0%).
- The 4Gauge.com site has 45 #1 rankings in Google, which combine for 5,670 searches per month (per Ahrefs). It has a total of 313 Page 1 (i.e. top 10) Google rankings, which are searched for a combined 25,830 times per month.
- The store boasts an amazing 5.36% conversion rate (meaning over 5 out of every 100 visitors places an order).
- This is a single-product business... just 1 SKU in 1 flavor. It's as simple as it gets! Of course, the new owner could expand the product line by releasing complementary products that go hand-in-hand with the pre-workout supplement (i.e. proteins, post workout, intra workout, amino acids, fat burners, etc.). This is just one of several huge growth opportunities the new owner could pursue.
- Operating this business is incredibly easy! The owner and his team currently only spend 5-10 hours per week on the business. This is feasible because products are sent directly to the Contract Manufacturer (supplier) to two fulfillment centers (one in the USA and the other in the UK), which ship orders directly to customers.
The store's Average Order Value (AOV) is $70.63.
- The sale includes a 16,000+ person mailing list, with over 12,500 active subscribers.
Continue reading below for more information about this steady and upward-trending business.
The owner is selling 4Gauge.com and the 4Gauge brand because his business sells several other types of supplements (including several new releases) and wants to focus his team's efforts and resources on them.
- Niche: Pre-workout supplement (sports nutrition)
- Store Model: Retail eCommerce
- Inventory Model: Fulfillment Center
- Business/Website Age: ~3.5 years (started in Jan 2017)
- Avg. Monthly Revenue: $46,893/month
- Avg. Monthly Net Profit: $10,610/month
- Gross Profit Margin: 54.3%
- Net Profit Margin: 28.2% (after ALL expenses)
- Avg. Order Value (AOV): $70.63
- Conversion Rate: 5.36%
- Weekly Time Requirement: 5-10 hours/week
ASKING PRICE: $500,000
The seller's asking price for the 4Gauge business is $500,000, calculated as follows...
Trailing Twelve Months (TTM) Net Profit: $127,321
x 3.0 Multiplier: $381,963
Plus Cost Value of Inventory: $119,000
Rounded Down to: $500,000
P&L AND FINANCIAL INFORMATION
Here is the P&L Statement for the Trailing Twelve Months (TTM) of August 2019 through July 2020 (click on the image to see a full-size image in a new tab):
Note 1: Product Costs for the entire 12-month period ($165,575) were 31.4377% of net revenue ($526,676). This 31.4377% ratio was then applied to each month's net revenue to derive the 'Product Costs' figure for that month.
Note 2: 4Gauge is one of several supplement brands owned by Roar Ambition, which shares overhead expenses (such as website costs and subscriptions) among all of its brands and websites. Since the buyer will only be purchasing the 4Gauge brand and website, these expenses will no longer be shared with other sites. To be conservative, the P&L Statement above shows what these costs would have been for a stand-alone website (rather than the lower amounts that Roar Ambition actually allocated to 4Gauge).
Note 3: As mentioned in Note 2 above, 4Gauge is one of several brands owned by Roar Ambition. To garner some additional sales, the 4Gauge pre-workout supplement has also been listed and sold at the RoarAmbition.com website (and, in just the most recent 3-4 months, through Roar Ambition's Amazon.co.uk and eBay.co.uk accounts as well - though sales on these marketplaces have been minimal so far). Over the 12-month P&L period, 92.4% of orders have come through the 4Gauge.com website, 6.5% through the RoarAmbition.com site, 0.7% through Roar Ambition's Amazon.co.uk account, and 0.4% through Roar Ambition's eBay.co.uk account. To account for the fact that a combined 7.6% of orders have come through Roar Ambition's site and Amazon/eBay accounts, this 'Adjustment' line item removes 7.6% of the [revenue less relevant variable costs] so that the 'Net Profit' shown on the P&L reflects only the profit derived from the 4Gauge.com website, which the buyer will be acquiring. Upon completion of the sale, 4Gauge will be removed from the Roar Ambition website and from Roar Ambition's Amazon and eBay accounts. The buyer will of course be able to sell 4Gauge on Amazon, eBay and any other marketplaces desired (through new marketplace accounts).
The current owner will of course give the eventual buyer the opportunity to perform extensive due diligence and verify all of the income claims and other information presented in this listing. This will include doing a number of live "screen-share" web meetings to log in and view reports and transactions in the store admin panel, payment accounts, etc.
Following is a screenshot from the 4Gauge.com store admin panel that verifies the revenue figures in the P&L (Sales Total $524,737 - Refunded $4,358 + Shipping $40,437 = $560,816 Total, which is just 0.34% off from the revenue figure shown in the P&L above).
Finally, the Google Analytics report below shows a breakdown of sales by country. As you will see, 56.7% of revenue is in the USA. UK accounts for 27.4% of revenue, with Australia (2.8%) and Canada (2.4%) being a distant 3rd and 4th. The rest of the world makes up the remaining 10.7% of revenue. The fulfillment centers (one located in the USA and the other located in the UK) completely handle shipping and fulfillment worldwide.
ABOUT THE PRODUCTS & SUPPLIERS
First and foremost, it's important to know that the business has created its own brand of a pre-workout (sports nutrition) supplement. The brand is called 4Gauge. The pre-workout supplement is a 100% unique, custom product that the owner has formulated and created himself, complete with its own custom branding and packaging. 4Gauge cannot be found on other websites or in other stores.
The business is based on a single SKU (in just one flavor), making it about as simple of a business to run as possible. There are, of course, complementary products the buyer could add to the store to expand the product line and takes sales to the next level. These include proteins, post workout, intra workout, amino acids and fat burners, just to name a few. Releasing additional flavors of 4Gauge could also boost sales and the return customer rate.
4Gauge is manufactured by an FDA-approved laboratory (which is called a Contract Manufacturer, or CM, in the supplements market) located in the United States. The CM then ships a portion of the completed inventory to a Fulfillment Center also located in the USA (to fulfill USA and Canada orders) and ships the remainder of the inventory to another Fulfillment Center located in the United Kingdom (to fulfill orders to Europe and the rest of the world).
Ordering the product is very simple. The owner purchases bottles and caps (which are custom-made to look like a shotgun shell) from a manufacturer in the USA, which are shipped directly to the CM. The owner then submits a Purchase Order (PO) to the CM about 3 months in advance (this is the CM's lead time). Inventory needs are calculated in a spreadsheet by using recent sales volume as a projection for future sales, and then subtracting the current inventory on hand (at each of the two Fulfillment Centers).
MARKETING AND TRAFFIC
4Gauge has a very favorable, well-diversified traffic breakdown, as you can see in the following "Acquisition Overview" report from Google Analytics...
As you can see, 4Gauge isn't overly dependent on any one traffic source. The top 3 traffic sources are: 1) Paid Search (i.e. Google Ads) - 24.9% of total traffic; 2) Referral (i.e. affiliate links) - 24.3% of total traffic; and 3) Direct - 19.0% of total traffic.
The primary paid traffic platforms 4Gauge uses are Google Ads (78% of ad spend over the past year) and Facebook Ads (22% of ad spend). Both advertising accounts are of course included in the sale. Management of the paid ad campaigns is currently being outsourced for a monthly cost of around $300 (this expense is shown on the 'PPC Management' line item in the P&L).
4Gauge's #2 traffic source is links from affiliates. These are bloggers, site owners and other "influencers" in the sports nutrition industry who earn affiliate commissions by featuring and promoting 4Gauge and sending their readers/viewers to 4Gauge.com to place an order. The nice thing about affiliate traffic is that the business only pays a commission on the first order placed by the customer. When customers come back to re-order more 4Gauge at a later date, nothing needs to be paid to the affiliates.
The #3 traffic source is direct traffic. It's quite impressive that 19% of the site's total traffic is direct traffic (i.e. people who type the 4Gauge.com domain name directly into their web browser). This means that 19% of visitors know the site's domain name and navigate directly to the site, likely because they've a) placed an order in the past, b) visited the site before, or c) heard about the site (by name). It's quite uncommon for an eCommerce store to have such a high percentage of its overall traffic be from direct traffic. This is indicative of the fact that the site has a very strong brand reputation and name recognition.
Organic traffic is currently the #5 traffic source for 4Gauge, accounting for 11% of overall traffic. This is completely free traffic to the website due to its solid rankings in Google and other search engines (thanks in part to the hundreds of well-written articles on the site). The following table shows Google rankings data from Ahrefs.com as of the listing creation date:
|Rank in Google||# of Keyword Phrases||# of Monthly Searches|
|#2 - #5
|#6 - #10
|#11 - #15||151
|#16 - #20||108||9,760|
|#21 - #30||210||19,930|
|#31 - #50||529||54,600|
Click here to see the keyword data exported from Ahrefs.com that was used to generate the above table. The 2nd tab of the spreadsheet shows which keyword phrases people are searching for when they find the 4Gauge website (along with 4Gauge's current Google ranking & the estimated monthly search volume of each search phrase).
The following screenshot from Google Analytics shows organic traffic over the past 12 months...
This final screenshot from Google Analytics shows the traffic by country over the past 12 months...
As you can see, 56.2% of total traffic is from the USA. The UK is #2 and accounts for 27.6% of traffic, with Australia (2.8%) and Canada (2.4%) being a distant 3rd and 4th. These traffic figures coincide fairly closely with the country-by-country revenue breakdown shown in the P&L and Financial Information section above.
The owner and his team only spend 5-10 hours per week running the business. The entire order fulfillment process is completely automated, and the two fulfillment centers handle all order fulfillment (including returns, which are very minimal).
Following are a list of tasks the owner and his team currently perform (along with estimated time required for each task)...
- Prepare and send weekly newsletters (1.5 hours per week)
- Social media posts and management (3-4 hours per week)
- Customer service tickets/emails (1 hour per week - typically only 6-8 tickets per week)
- Affiliate management (2-3 hours per month)
- Monitoring stock and ordering inventory (2 hours per month)
- Analyze reports and performance metrics (1 hour per month)
As part of the sale, the current owner (and his team) will train the buyer on all aspects of running the business. This will include up to 40 hours of "live" training (via web meeting, webinar, Skype, phone, etc.) as well as 90 days of email support.
- Switch to a Lower-Cost Contract Manufacturer - 4Gauge just recently received a quote from a different contract manufacturer that would reduce the per-unit cost of 4Gauge by $1.77. Given the volume of sales over the past year (15,769 units), switching to this contract manufacturer would instantly add about $28,000 to the bottom line. That's an additional $2,300 of profit per month! (Note: Were he not selling this site/brand, the current owner would have already made this change. But he figured it was best to hold off making this change in contract manufacturers until discussing it with the new owner.)
- Sell 4Gauge on Amazon and Other Marketplaces - Most supplement companies do the vast majority of their sales on Amazon and other marketplaces, with their hundreds of millions of built-in customers ready to buy. As mentioned above, the owner just recently (3-4 months ago) listed 4Gauge for sale on Roar Ambition's Amazon.co.uk (UK) and eBay.co.uk (UK) accounts and made a few dozen sales without much effort at all. The new owner could easily start selling 4Gauge on multiple Amazon marketplaces (USA, Canada, UK, Germany, Australia, Japan, etc.), as well as other marketplaces like eBay, Jet.com, Rakuten and more.
- Add More Flavor Options - Taste is important to a lot of people. As of now, 4Gauge is only available in one flavor: fruit blast. Most other sports nutrition supplement companies offer several different fruity flavors (i.e. blue raspberry, strawberry lemonade, sour grape, green apple, orange, etc.). Adding a few additional flavors would no-doubt lead to more sales and re-orders.
- Add Complementary Products - The type of people who buy pre-workout supplements are the same type of people who buy all kinds of supplements. There are several highly complementary supplements that could easily be sold alongside (or in packages with) 4Gauge, including proteins, post-workout supplements, intra-workout supplements, amino acids, BCAAs, creatine and fat burners). 4Gauge has already built up its brand reputation and established a loyal customer base. It's time to take advantage of it by offering several complementary supplement products!
- Start Doing Influencer Marketing - This is the ideal niche/product line to use "influencer marketing" to generate additional traffic and sales. There are hundreds of "influencers" (people with tens/hundreds of thousands or even millions of followers) relevant to this market who you could pay a fixed fee to do a "shoutout" for the brand/products, which could generate massive amounts of sales and turn into long-term customers who place additional orders down the road.
INCLUDED WITH THE SALE
The sale includes all of the following...
- The 4Gauge.com domain name and website (including all textual and graphical content), as well as 4Gauge.co.uk
- The 4Gauge brand name
- All 4Gauge-related images, videos, artwork and marketing materials
- All inventory on hand as of the closing date (currently ~$119,000 at cost value)
- All social profile accounts, including Facebook (~12,750 followers) and Instagram (~920 followers)
- Mailing list (containing approximately 16,000 past customers, around 12,500 of which are deemed "active")
- 90 days of support to train you/your employee on how to run the business (including up to 40 hours of "live" support via phone or live webinar/screen share)
- Free lifetime membership to the Store Coach Academy (if you're not already a member)
You can make an offer for this highly profitable online business here. If the sellers accept your offer, we'll notify you immediately and update this page to let other interested parties know that an offer has been accepted and the sale is pending.
Once your offer is accepted, the official due diligence period will begin, during which time other interested parties may place a "back-up offer" in case the sale falls through for whatever reason. (Please note that if one of the back-up offers exceeds the original accepted offer, the seller is obligated to sell to the original buyer whose offer was already accepted. The seller can't back out of the accepted offer just because a higher offer was later made.)
During this due diligence period, we'll work closely with you and with the seller to help you complete due diligence. Among other things, this will include doing one or more live screen-share web conference meeting(s) so you can verify all financial information by reviewing the store admin panel, bank and merchant accounts, sales reports, Google Analytics traffic reports, supplier invoices, etc. We'll also send you the Asset Purchase Agreement (APA) for you to review. Once the APA is signed and the sale is completed, we will 1) update this page to let other interested parties know that the sale has been finalized and 2) remove this listing from the Store Coach Website Marketplace.
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Disclaimer: Store Coach, Inc. is acting as the broker of the sale of this website/business. The website/business owners are solely responsible for all figures, statements, claims and information provided on this page as well as all figures, statements, claims and information which may be provided to interested parties during the due diligence process. It is the responsibility of the eventual buyer to review and verify all figures, statements, claims and information provided by the website/business owners.