Executive Overview (summary)
This is a Shopify-based premium golf-simulator retailer selling turnkey simulator packages, enclosures, launch monitors, projectors and accessories. The business is positioned as a premium, brand-forward retailer with private-label/enclosure capabilities and authorized-dealer relationships, selling high-ticket items (AOV ≈ $2,529) and operating with a supplier/fulfilment model (no warehousing required). Public product pages show multiple packaged simulators, enclosures and accessories, and product reviews are visible on product pages.
Headline financials (seller-provided):
Annual revenue: $534,916
Annual profit (net): $99,184 (≈ 19% net margin)
Monthly average revenue: $44,576; monthly average profit: $8,265.
AOV: $2,529.
Email list: ~1,829.
(Full month-by-month table below — supplied figures used.)
Website Performance & Commerce Metrics — Findings & Implications
What we looked at: site product structure, product pages, category/collection structure, visible reviews and social presence (sampled). For precise performance metrics (page speed, GA sessions, conversion rate, traffic sources) we must obtain the store’s Google Analytics and Shopify admin access.
Product offering & SKU footprint
The store sells full simulator packages (multiple SGPro packages), enclosures (SIG10, SIG12, SGPro enclosures), launch monitors and accessory ranges (mats, screens, projectors, putting greens) across several collections — visually and structurally this is a true category e-commerce play (packages + accessories).
Estimated SKU breadth (public sample): during our review we found 15–25 distinct product pages by sampling collections and product URLs; given category depth, a conservative estimate is ~30–70 SKUs (packages + accessories + replacement parts). Recommendation: confirm exact SKU count and whether product pages map 1:1 to SKUs (some product pages may offer many options / variants).
Website speed & technical quality
We did not run a PageSpeed/Lighthouse test in this review. The Shopify front end appears standard (image-heavy product pages). Typical next steps: run PageSpeed Insights / GTmetrix to capture CLS/FCP/LCP and mobile scores and implement image compression, lazy-load, and theme JS/CSS bundling if required. (This will materially affect mobile conversions for the high-ticket shopper.)
Conversion & AOV implications
AOV = $2,529. Using seller revenue, implied number of orders =
534,916 / 2,529 ≈ 212 orders/year(~17.6 orders/month). Given annual profit margin 19%, net profit per order ≈ $480.5 ($2,529 * 0.19). This is a key metric for CAC planning. (Calculations from supplied figures.)Note — data inconsistency / red flag: the listing shows 1,858 customers and 188 orders (these two figures are inconsistent with revenue & AOV). Either the “orders” number is misstated, or the AOV / customer counts are not synchronous. Ask seller to reconcile: (Shopify orders export, Shopify customers export, order-level CSV).
Brand & customer sentiment
Product pages show customer reviews (~15 reviews on some product pages) and there are social footprints (Instagram) and forum/reddit mentions (mixed but generally positive buyer feedback in niche communities). This supports the claim of “trusted seller” in niche communities, but sample size is small — a deeper reputation audit is required.
Marketing channels observed (public): organic search (site collections + product pages), Instagram presence, and forum mentions. Seller asserts Google Ads & Meta Ads are active (we recommend ad account access to verify spend & ROAS).
Financials:
The 12 months add to the stated annual revenue and profit (we verified totals match the seller figures).
Top-3 months (Oct 2024, Jan 2025, Nov 2024) = ~50% of annual revenue and ~66% of annual profit — this indicates high revenue & profit concentration in a few months and suggests one or a few large transactions drive results. This concentration materially increases execution and continuity risk (if those large orders were one-offs or B2B/commercial projects).
Volatility: revenue ranges from $8.9k (Jun) to $115k (Oct) month; profit swings from -$1.3k to $30.7k — big swings signal either seasonality, contract timing, or ad/campaign-driven spikes.
Negative profit month (June): requires explanation (returns, large refunds, heavy ad spend, supplier pricing or shipping cost spike). Ask seller for invoice/backorder/return details for June.
Marketing (Paid & Organic) — Assessment & Opportunities
What’s public / claimed
Seller says acquisition channels include Google Ads, SEO, Meta Ads and that there’s organic product content in place. Public site has product pages and collections that are good SEO anchors for “home golf simulator” keywords.
Opportunities (high lverage)
SEO / content: long-form guides (“How to build a home golf simulator”), buyer’s guides, comparison pages (SkyTrak vs Rapsodo vs ProTee), and local commercial targeting. This is a durable channel for high-intent buyers.
Paid search scaling: Because AOV is high, paid search can be scaled if CAC < profit per order (~$480). Use financing (BNPL) and multi-keyword bidding for demo/installation queries.
Influencer / channel partnerships: YouTube/influencers that demo indoor golf setups can drive expensive but targeted leads (high intent).
Upsells & attachments: Financing, installation services, extended warranties, and accessory bundles can increase LTV and conversion.
Immediate metrics to request (to validate paid channel health):
Google Ads & Meta Ads accounts (last 12 months): spend, impressions, clicks, conversions, CPA and ROAS.
Top 20 ad creatives & landing pages (are they optimized for simulator packages?).
Organic traffic & keyword rankings (GA4 / Search Console access).
Operational Efficiency & Fulfillment
Model (seller claim + site evidence)
Supplier fulfillment / drop-ship + private-label enclosure manufacturing partnership (US) — this lowers inventory carrying cost but creates reliance on suppliers and longer lead times. Product pages reference US-made enclosures and packaged solutions.
Operational strengths
Low overhead (owner reports 10–15 hrs/week).
Turnkey product pages and packaged SKUs simplify purchasing decisions for buyers.
Operational risks / questions
Supplier SLAs & lead times: high-ticket products require reliable lead times, damage/return policies, and clear warranty terms. Confirm supplier contracts & remedy processes.
Installation & shipping complexity: simulators are large/heavy. Who coordinates freight, damage claims, and returns? Confirm shipping carriers, insurance, and RMA rates.
Customer support processes: how are post-purchase issues handled (returns, warranty claims, spare parts)? Product pages suggest active post-sale support from store owner/community — confirm staffing SOPs and ticketing.
Customer Data & Relationships
Public data: email list ≈ 1,829 (seller), customer count 1,858 (seller — see red flag), orders reported 188 (seller — inconsistent with revenue/AOV).
Implied orders (from revenue & AOV): ~212 orders/year (~17.6 orders/month).
Net profit per order: ≈ $480.5. (Important ceiling for CAC unless you can meaningfully increase LTV.)
Customer concentration & LTV
The large spikes suggest a small number of high-value buyers or periodic commercial installs. Request top-10 customers (revenue) and order history to assess concentration.
Email list size vs purchases suggests a marketing/opportunity gap: many subscribers but relatively few purchases — excellent upside if the list is real and properly segmented.
Actions to prove value: request Shopify customer export, top 20 orders, RFM analysis, and purchase frequency matrix from seller.
Legal & Compliance Due Diligence (Must-request items)
Authorized dealer agreements & proof of authorization for brands sold.
Private-label / manufacturing agreement (terms, MOQ, exclusivity, IP ownership for “SGPro” or any private label).
Product liability insurance and policy limits. High-ticket, physical goods require appropriate coverage.
Warranties & returns policy (published and actual practice) and any recorded claims/charges.
Vendor contracts (pricing, lead times, penalties).
Tax & business registration (EIN/W-9, recent tax returns, sales tax filings).
Payment processor statements (Stripe/PayPal/merchant acquirer) for chargebacks/refunds.
Privacy policy / GDPR / CCPA compliance if servicing US & international buyers.
Any pending disputes or claims (supplier, customer, IP).
Valuation/Multiples Commentary & Price Risk
Seller multiple (as provided): Profit multiple 1.1x, Revenue multiple 0.2x.
A 1.1x SDE multiple is low relative to market comparables for stable e-commerce (2–4x typical), but low multiples can be justified by: (a) volatility & concentration risk, (b) short operating history (2 years), (c) unclear data consistency, and (d) reliance on a few big orders.
Because ~50% of revenue and ~66% of profit come from three months, buyers should demand either a lower upfront price, an escrow/holdback for returns, or an earn-out tied to trailing 6–12 month revenue/profit targets to mitigate seller risk. (We can draft earn-out structures if you want.)
Major Challenges & Red Flags (Summary)
Revenue & order concentration — top 3 months ≈ 50% of revenue, 66% of profit. Verify whether those months were commercial projects or repeat holiday spikes.
Data inconsistencies — reported 1,858 customers / 188 orders vs AOV & revenue imply mismatch. Must reconcile Shopify exports.
Profit volatility — several low months and at least one negative profit month (June). Need explanation (returns, ad overspend, refunds).
Supplier & fulfillment dependence — private-label/manufacturing and authorized dealer relationships must be confirmed in writing.
Small review footprint — positive but small sample of public reviews; brand trust must be proven for high-ticket purchases.
Recommendations (Actionable Next Steps)
Immediate (before LOI or within LOI contingency): request & review
Shopify admin access (read-only) + orders CSV (12–24 months).
Google Analytics (GA4) & Search Console access.
Merchant processor statements (Stripe/PayPal) last 12 months.
Ad accounts (Google Ads & Meta) + last 12 months performance.
Supplier/manufacturer contracts, authorized dealer letters, and private label agreements.
Top 20 orders (invoice & fulfillment docs), returns & RMA log, warranty claims.
Copies of any NDAs, IP/trademark registrations, and insurance policies.
Deal structure suggestions (to mitigate observed risks)
Proceed to an LOI with a conditional data room. Given volatility and concentration, prefer earn-out or escrow/holdback structure: e.g., base multiple around 1.0–1.2x SDE with performance earn-out unlocking additional consideration up to market multiple if revenue/profit hold for 6–12 months.
Include representations & warranties for revenue accuracy, order history, and supplier agreements with indemnity for undisclosed liabilities.
30 / 60 / 90 day growth plan (buyer playbook — quick wins)
30 days: obtain GA/Shopify, reconcile order-level data, install merchant financing (Affirm/Klarna) to increase conversions, implement an abandoned-cart + high-AOV email flows.
60 days: ramp targeted Google Search campaigns for buyers (“golf simulator package”) with conversion tracking & targeted landing pages; test financing offers and A/B product page improvements (images, video demos).
90 days: launch a content & YouTube/influencer push (installation videos, walkthroughs), introduce installation & white-glove upsell, expand B2B/commercial targeting (clubs, training centers).
Technical quick wins: compress images, lazy load, defer non-critical JS, and optimize product pages for mobile to reduce friction for high-ticket buyers.
Due Diligence Checklist (Documents To Request From Seller):
Shopify orders export, customers export, product catalog & variants export.
GA4 property access & Search Console.
Merchant statements (Stripe/PayPal/processor).
Vendor/supplier contracts and authorized dealer proof.
Private-label/manufacturer agreement and IP ownership docs.
Warranty/return logs and last 12 months RMA records.
Ad accounts (Google/Meta) + creatives & landing pages.
Tax returns / P&L / balance sheet for last 2 years.
Proof of insurance & incorporation documents.
Explanation for months with outlier results (Oct, Jan, Jun negative profit).
Conclusion — Buy, Pass, or Investigate?
Recommendation: Proceed to a formal data-room review / LOI with contingencies.
Rationale: the business is a real niche e-commerce play with attractive AOV and clear scale levers (SEO, ads, influencer deals, upsells). The low asking multiples could present a good opportunity — BUT the valuation must reflect the high volatility, concentration risk, and data inconsistencies. We recommend an LOI that (a) secures exclusive due diligence access, (b) uses a conservative upfront valuation, and (c) layers earn-outs/holdbacks tied to verified revenue/profit targets.
Quick Numbers Summary (Actionable Metrics)
Implied orders/year (from revenue/AOV): ≈ 212 orders.
Average orders/month (implied): ≈ 17.6 orders.
Net profit per order (AOV * 19%): ≈ $480.5.
Top-3 months share of revenue: ~50%.
Top-3 months share of profit: ~66%.
(We used the monthly figures you provided to compute the above; request Shopify exports to validate order counts and per-order profitability.)
Final notes (Transparency & Next steps):
All statements above are based on public information we reviewed and the seller-provided financials you shared. To move from indicative to definitive assessment we must receive the items in the Due Diligence checklist (Shopify, GA4, merchant statements, supplier contracts, ad accounts).
Key question to ask the seller (must-ask right away): Why are you selling? Please provide the exact explanation in writing and supply corroborating documents (time constraints alone are common, but verify).
