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SOLD! ‘Q4 2018

Children’s Monthly Subscription Toy Box Positioned to go Boom!
Huntington Beach, CA – (Orange County)
Seller Financing Available!
Zip Code: 92648

  • Asking Price: $195,000
  • Cash Flow: $90,000
  • Gross Revenue: $304,000
  • FF&E: N/A
  • Inventory: $21,000
  • Established: 2016


Business Description

Capitalizing on the booming and profitable subscription “box” trend in e-commerce, this Company is all about enabling busy parents the opportunity to spend more playtime with their children and less time in chaotic toy stores – if one can even be found anymore! It’s true – more than 15 percent of online shoppers have tried or are using subscription services presently.

Company ships custom-printed boxes within three business days with standard subscriptions shipping out between the 20th and 23rd of each month. Contents of the box configured for boys and girls are a mix of four to six items that may include collectible and action figures toy cars, dolls, games, stuffed animals and alike that are known for having a value greater than the subscription cost thanks to Sellers suppliers that allow for better-than-average profit margins.

All infrastructure, from the development of the Website, payment processing, product supply, shipping protocol, and even the boxes are established, functional and set up for continued success.

NDA is required for confidential Confidential Information Memorandum (CIM) crafted by ProNova Partners.

Detailed Information

  • Inventory: Included in asking price
  • Employees: 1
  • Facilities: 1,400 square feet of commercial space (primarily warehouse area) in a small strip business center. Can be moved anywhere.
  • Competition: Plentiful, but it’s a growing market with plenty of submarkets. Companies that provide consistently good service, a positive experience, and good value are predicted by experts to do well.
  • Growth & Expansion: Expand offerings beyond the standard Boy or Girl model to attract parents who have children of different sexes and expand to fun STEM or educational products.
  • Financing: If the price and deal structure are right.
  • Support & Training: 2 Weeks and 40 hours per week.
  • Reason for Selling: Seller has launched another business that demands great attention.

Toy & Hobby Industry – Overview

Toy and Hobby Industry reports that the global toy market generates about $90 billion in annual revenue, according to the NPD Group.

The US is the world’s largest toy market, accounting for nearly 30% of total sales. Areas of growth include China and India, where rising disposable income is driving increased demand. The US toy and hobby store industry includes about 8,100 stores with combined annual revenue of about $19 billion. These figures do not include web-based toy-centric businesses.

Consumer spending is a key driver of demand for toy and hobby stores. In addition, population growth among young children (under 12) drives demand for toy stores, and population growth among women 35 and older drives demand hobby stores. Small companies can compete effectively by offering specialized products, providing superior customer service, or serving a local market. The US industry is highly concentrated: the top 50 retail companies generate about 85% of revenue.

Brick-and-mortar toy stores are losing market share to online toy retailers, including

Inventory assortment depends on store size and product specialization. Large toy stores offer between 8,000 and 24,000 stock-keeping units (SKUs), while a specialty toy store may only carry 500. Inaccurate forecasting is a frequent problem and most retailers rely on end-of-season sales to clear merchandise.

Toy and hobby stores buy products from manufacturers, importers, or distributors. Both retailers may offer unique private label products, which generate higher margins. Toy stores may depend greatly on major toy manufacturers due to the popularity of branded products like Barbie and Hot Wheels.

Imports are a high percentage of toy and hobby products, and retailers may place orders up to six months in advance but major toy retailers may place positional orders over a year in advance. Retailers attend trade shows (like the American International Toy Fair for toy stores) or craft fairs to help decide on merchandise.

Contact info

Pronova Partners

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