StrobeProps is an eCommerce store that has found instant and incredible success by selling a relatively unique product – prop money! After discovering a need in the space, the owner found a fantastic printing partner and went to work. He is now averaging over $9,000 / month in profit, but is willing to sell the business so that he can finance a new venture.
Tell us a little about yourself. What’s your background and how did you come to start this business?
My name is Momin, I’m 23 years old, and graduated with a degree in data analysis earlier this year. I came across this business because I had several friends in the entertainment industry, from music, to theater, to magic, to film. I noticed that when they were using fake money in their productions, everyone’s eyes got raised and they gained interest. I did some research and realized that there was not a lot of competition in the marketplace and that I can make some real money selling fake money. I went about getting a business license, bought a domain name, started a Shopify store, and found a good vendor. The business took off faster and made more money than I ever could have expected. Here I am, a year and a half later, ready to move on to the next thing.
Does your supplier have minimum orders? What about price breaks if the new owner wants to purchase in bulk?
My vendor’s minimum order is about 100 stacks, but of course, as the volume increases, he expressed that he is ready to work on the price. My margins are already so good, and his price is very reasonable as it is.
While I live near the printer and handle order fulfillment myself, my vendor has also expressed the ability to role out a drop-shipping model if the new owner prefers to go in that direction.
You mention selling to production studios: Do you have a few customers that make up the bulk of your sales? What is your return customer rate?
No, I have over 3,000 different clients. I don’t have any one or two customers that make a bulk of my orders. For every 3 customers, one will come back. This isn’t the typical product where a customer would need to return, as ordering once should be enough for their needs even if they’re long term. While I have had some customers who order a bulk amount, most of the orders are for small theater groups or individuals shooting student films or needing props for a costume.
Can you list a few opportunities for a potential new owner to continue growing the business?
The biggest opportunity for growth would be integration. I know that you can post these on sites like: wish, bonanza, amazon, eBay, Etsy, Storenvy, etc. That way you can reach more people.
You can also work on advertising. Personally, I have never paid for marketing or advertising, I think that’s the beauty of my business that my only costs are my vendor and shipping, but that might want to be something you look into.