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Website Profiles
Listed September 26, 2017
Category E-Commerce
Status Fully Developed Website
Visitors 1,000 (daily)
Page Views 0 (daily)
Income $25,000.00 per month
Expenses $0.00 per month
Asking Price $10,000.00
URL http://www.hobbyexpress.com

Hobby Business Opportunity Summary

 

Hobby Express is a company that enjoys a 50 year legacy in the high end hobby business.  This catalog company, originally known as Hobby Lobby International, Inc. created outstanding customer relationships and long lasting loyalty with innovative products, great people and market leadership in electric power systems for radio control products.  Over time, given its dedicated people and reputation for great technical support, the company built a wholesale distribution business representing leading European suppliers in the North American market.  In that window of time, the company created a number of proprietary brands that were sold through that dealer network.  The trademarked slogan “The Best Stuff” adorned 56 annual catalogs, it was featured online and in proprietary product packaging.  The vision “Share the Fun” connected with independent hobby shops, their customers and ours.  While battling through the recession, our focus on the wholesale business was minimized, but the company created very strong national brand awareness and a positive reputation over this extended effort.  

The most powerful brands created in that time and still sold today are the portfolio and corner stone of the essential franchise, which includes the successor to the “Hobby Lobby” brand, the Hobby Express name.    

The best summary of the situation leading to the Hobby Lobby Store, Inc. acquisition of the Hobby Lobby International, Inc. brand name and related intellectual property assets was told by the enclosed/attached white paper published on 4/8/2014 and 4/14/2014 in the New York Times.  Terms and conditions of that agreement require strict confidentiality of all historic financial data and accordingly, the company changed its name to Hobby Express USA, Inc.  Together with Hobby Lobby Stores (press release 12/9/13) marketing efforts successfully directed customers to the right company with minimum market confusion over a planned transition period.  Hobby Express USA, Inc. operations were terminated on 12/31/2013 and remaining assets liquidated or sold to Hobby Express LLC.  This included inventory, product designs, supplier relationships, e-mail and address lists, equipment, intellectual property and brand names purchased by Hobby Express, LLC which began operations on 1/1/2014.  

Consumer communications and advertising campaigns were executed to direct existing and new customers to the new web site and the company began to focus on its next transition.  The first objective was to exit the warehouse facility and logistics business to gain new technologies and move to pure activity based costing.  The second objective was to wind down and exit the local retail direct sales business.  Both transitions were successful.

The successful transition to the Hobby Express brand name is a case study by itself.  Since these major migrations were executed, the continuing, web only sales volume has been progressing on a slow and steady increase.  After purchase of a new and relevant URL, we executed on the plan to manually manage the migration of a significant body of “link back” references and partner connections to the new web site.  The company URL www.HobbyExpress.com has significant organic traffic and has maintained that traffic after the brand transition.  The Google traffic summary data is provided.

A deserving highlight of the differentiation strategies for the company has been to insure quality and a continuing competitive advantage by returning production of all Telemaster products and the Miss 2 Kit production to the USA.  

All company operating business systems are virtual, hosted and cloud based technologies (www.agiliron.com, www.quickbooksonline.com, www.shipstation.com, www.searchfit.com and www.myemma.com) with appropriate redundancy and back up.  Hobby Express contracted with one of the leading third party logistics companies in Nashville, AIM Solutions to provide product warehousing in Nashville with order pick, package and shipping services.  The AIM organization also has warehouse facilities in Nevada offering  geographic expansion potential.  Hobby Express has developed successful, functional drop shipping solutions with key partners.  Business processes are fully integrated with consumer facing web resources and nicely streamlined order management systems,  The low cost operation is in functioning place -- it’s stable, agile and available for acquisition.

For the purpose of minimizing the cost of moving and receiving inventory at AIM solutions, the company worked hard to  sell through its inventory, while the SKU count was simultaneously dramatically reduced to the level of 2,150 active SKUs.    The closure of the hobby store also prompted a reduction of available SKUs, as products stocked primarily to serve local store customers had also been available on the web site.  This represented unnecessary overhead in the transition.

Hobby Express has interacted with, served and supported several hundred thousand modelers, schools, hobby shops and resellers with telesales and technical support, a massive web site, direct mail and active social media marketing.  The physical mailing list is aged, but it has value.  The email list features over 110,000 opt in consumers - a current and very active asset.  The YouTube video database is a massive and valuable library.  A dedicated social media following exists.





 

Web Asset or Related Intellectual Property

Performance Highlights

Asset Leverage Opportunity

Value Proposition

www.hobbyexpress.com

Blog

Social Media Assets:

Forum members: 2,248

YouTube Subscribers: 4,609

YouTube Views: 5,126,997

Facebook Likes: 8,513   

Twitter Followers: 3,833

A significant investment and effort was required to transition target customers from www,hobby-lobby.com to a new brand name and URL.  Google statistics are attached.  A very consistent performance nearly 70,000 sessions a month of nearly 50,000 unique visitors is impressive.

The average transaction the value on web sales site is roughly $115.

The shopping cart has been in place and stable for over seven years, featuring a great depth of detail photography, product statistics & reviews with integrated video.

Over 2,100 SKUs representing a wide range of products, parts and brands that  are currently on this site in organized categories. 1-3 months of continued support of this cart would available via an experienced consultant.

The service provider offers a Technically flexible, hosted cart service. Building out this web site reflects years of considerable effort.  It’s easy to contribute new products and content.  An investment to construction a web site of a similar scale would not be guaranteed to duplicate the performance of this site.  

VALUE: $260,000

E-mail List

The company maintains a consistent contact with a large opt-in list of over 65,000, carefully curated contacts who have all opened and engaged with our email campaigns.

In today’s online environment, it would be extremely difficult, if not impossible to build a documented, opt-in e-mail list of highly targeted buyers.

The bench mark valuations of e-mail lists move within a narrow range from $.70 per name to $3.50 per name.

VALUE: $130,000

“The Best Stuff” Trademark:

A protected registration that is current and transferrable

A flexible statement that is applicable to any product

VALUE: $5,000


 

Proprietary Brands

Brand Name

Product Type and Description

Unique Asset or Value Proposition

Estimated Value of Brand Attributed to Sale Price

TELEMASTER

A well established family of laser cut balsa and engineered wood structures available in a variety of popular size options from the Micro Telemaster at 34.5 inches wing span, to the Mini Telemaster at 45’ wing span, the Version 2 (V2) 40 and Deluxe kit are each at 73” followed by the 60 size Telemaster Senior at 91.5” then the big daddy, the’12’ Telemaster radio control aircraft platform.  The 60 size Senior Telemaster Plus ARF has a 94” wingspan.  A variety of similar size ARF versions exist.

The most prestigious brand name for laser cut, high quality model airplane kits made in America.  A Telemaster RC airplane comes in a wide variety of sizes as both a kit and Almost Ready to Fly (ARF) aircraft.  While every design is completely reengineered and updated in the last few years, the platform is by far the most widely recognized and established brand in the category.  

The proprietary design is a popular training and excellent, heavy lifting, slow flying platform.

This popular platform for home hobby aircraft builders is also widely used by school systems, engineering programs and various authorities for surveillance, rescue operations, agriculture survey and other “drone” type applications.  Military contractors, NASA and other organizations use the Telemaster.

Gas and electric powered versions are stable platforms, with an entire online community of experienced builders who constantly innovating.

The combination of its brand strength, its history, ongoing market demand, the recently optimized and reengineered design (and variety) of a well established product delivers a unique value.  Registered trade marks are included.

To recreate this product is a Herculean task, and creative line extensions are easy to imagine, from accessories (like pontoons or drop box) to new and specific use or performance oriented parts.  It could include big cameras and almost any variety of sensor packages.

VALUE: $200,000

Pilot-1

A well established family of rarely modeled classic era aircraft.  Primarily presented in Almost Ready to Fly (ARF) versions, this is a sophisticated, scale version of vintage, commercially produced aircraft and race planes from the golden age of flight.

There are a wide variety of Pilot 1 products currently in production.  

There is also a nice library of sibling products which we have temporarily suspended production.  In each case, the engineering is excellent and the vendors are in place so that the line can easily go back into full production at any time.

The designs of each of these popular aircraft are exquisite, accurate and all of them will deliver an outstanding build experience and an amazing flight.  Every member of this line is previously developed, successfully produced and tested.   This is a long tail product and the cost to duplicate this offering today would be very high.

Two new products are in the development pipeline.

These products are proven and tested with a very loyal following in the market.  It was decided during the period of heavy lifting of business transition, that this typically high cube product should be allowed to sell down.  There is currently a production order pending to restock major sellers in this line, which has almost no direct competition in the segment.

VALUE: $100,000

eRC

A complete line of brushless motors, servos and speed controllers that can be sold through hobby dealers and consumer directly, as parts and accessories for all types of model projects.  

Components are all priced at the middle of the market,  with performance meeting top of the market expectations.  

These elements of electric powered flight compliment a wide range of RC airplane models.

Speed Controllers:
This was the first brand of Rapid Drive speed controllers, an innovation that delivered performance to multi-rotor and high respond brand platforms.

Servos:
Metal gear, high quality products covering most size ranges.

Motors:
Brushless, efficient electric motors. Additional stock immediately available for delivery from supplier warehouse.

 

This is the core element of a strong foundation in “parts” branding upon which little more is required to build.  Starting with a solid look, a smartly constructed brand of essential parts, at the right price point, is key.  These are high margin products, easy and safe to ship.  Quality has always been the focus and the price point target is at the mid range,

The company enjoyed strong sales of eRC brand product through its Hobby Shop retail network.  This high contact, face to face sale helped us to build a consumer following, but during the recession, our strategy changed to favor our own direct retail sales at more attractive margins.   This line of parts can form the cornerstone of an “Intel Inside” strategy with drones (or any offering).


VALUE: $40,000

PowerWing

An effective and wide range of lithium-poly batteries, all tested & smartly packaged.

Hard Case style for cars

Soft pack for aircraft of all types

Established supplier, tested and proven models.  In the online world, having a brand of batteries not immediately available on every web site helps preserve margins.  

Higher volume orders from supplier will deliver improved margin.


VALUE: $10,000

Miss 2 laser cut kit

A recently reengineered and updated, laser cut balsa kit airplane which was recently launched.

Made in the USA, it’s a very unique craft with very well documented instructions.  This aircraft builds well and has a long tail in the market.  

Classic hobby aircraft that appeals to all modelers

VALUE: $5,000

Investment in these proprietary brands has been significant over the years in terms of real product development costs, effective packaging and testing: the market penetration that followed is demonstrable and can be leveraged.  These brands are established, supported by significant historic and a modest current investments in print advertising, with strong product reviews, online content found in various 3rd party media, and products featured on the major industry forums.  Photography, specifications and performance details are both accurate and well presented on the company web site, which dominates organic search results.  These are all great products used by enthusiasts and seen in the market.

Brands under exclusive distribution

Brand Name

Product Type and Description

Unique Asset or Value Proposition

AXI - a well established brand distributed by Hobby Express for decades

The most prestigious brand name for brushless electric motors, recognized as the best product in the segment.  

Produced by Model Motors, this is a long term partner which has been an active distribution offer for a decade.

Often used by high end commercial builders by specification, the product covers every motor type.

Aeronaut - a well established brand distributed by Hobby Express for decades

Competitively priced, high end - fixed blade, multi-blade and folding propellers, highly machined

From injection molding to carbon fiber materials, these are precision products with a devoted consumer following.

 

Hard Assets

INVENTORY

Summary of Related Assets

Estimated Value

Inventory for resale

Audited by AIM twice, each SK valued at average acquisition cost

This number changes constantly.  All inventory sold at book cost, plus 10%

 





The information contained in this listing has been provided by the seller and has not been verified by WebsiteBroker. We make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness - including, but not limited to, ownership of any website or domain listed here. You and your advisors should conduct a careful, independent investigation of the website to determine to your satisfaction the suitability of the website for your needs.

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