Distressed Listing / 14 Year Old DJ Equip. Biz / Highest Customer Rated Co. in Vertical

  • REVENUE

    $3,005,701

  • INCOME

    $182,199

  • MULTIPLE

    N/A

Asking Price: Accepting Offers + Inventory

Reading Time: 2 minutes

Launched in 2010, this DJ equipment company has the highest customer-rated company in its vertical, with a 4.9/5 rating across 7,000+ reviews. In 2021, InternetDJ.com called it “The #1 Place to Buy a DJ Controller.”. While the business utilizes platforms like Amazon and eBay, it acquires 90% of customers directly through its site where it delivers 5-star experiences resulting in deep customer relationships, word of mouth, and higher margins. As a result, they have a highly engaged email list of 59,000 subscribers.

The company is considered a model dealer and key account by leading vendors, accomplished by creating win-win relationships. The current catalog consists of 900 SKUs. 81.89% of sales come from DJ equipment, 10.4% from cases and accessories, 6.11% from live sound and 1.6% from studio equipment. Expansion into areas of lighting, photo booth, and limited live sound options would allow expansion into leading brands and an opportunity for immediate growth.

Despite this strong foundation, the business has experienced a prolonged slide in revenues from December 2022 until now. This started when Google introduced the Performance Max Adwords algorithm, which hurt the company’s strategy of granular control to its deep catalog of products. This algorithm update was compounded with prolonged product shortages, customer impatience with preordering, and an overall downturn in consumer electronics spending.

New ownership will find that this is a business with a solid foundation, especially in its reputation, but needs a new approach to driving traffic to deep catalogue items. Possible approaches to driving this traffic would be to expand on SEO efforts, explore social media marketing, and implement marketing automation. There is also opportunity to capitalize on the strong reputation and create digital products to teach DJs how to monetize their hobbies.

Because of these recent headwinds, this business is priced extraordinarily low in order to give a new owner plenty of runway for upside and investment. There is an operating team in place to smooth any transition and allow new ownership to immediately focus on growth initiatives.

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Meet Your Advisor

Pat Yates

Pat is a seasoned entrepreneur with a focus on e-commerce.  In 2014 he struck a deal with Robert Herjavec on the Emmy Award winning show “Shark Tank”.  Pat grew a single slipper kiosk business into a multi-million dollar e-commerce focused business.  During that time Pat has done licensing deals with DreamWorks, NCAA, NFL and Disney.  In 2015 he struck up a relationship with Mark the founder of Quiet Light and continued eventually leading him to becoming an advisor.

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