ECommerce Firm for High Demand HVAC Products

State of the Art ECommerce Company providing high-demand environmental products with a long-standing excellent reputation in a growing industry. The company is a pioneer in the HVAC industry revolutionizing the commerce of HVAC products online and has built an Ecommerce platform that is unparalleled and is constantly growing year over year. Expanding into additional product lines and categories, growing their proprietary private label line, purchasing and selling name brand over-stock inventory online, one-of-a-kind network of referral business and or installation and services are the next steps in the company’s growth. 

The Company had exponential growth from 2019 to 2020 and grew at an astounding 52% year over year. Estimated sales in 2022 are $19,200,000 which are 22% higher from sales levels in 2021 with a large majority of this revenue coming from the increased marketing efforts.  Projected sales in 2023 are estimated at $23,625,000 with an EBITDA of $2,650,000.  Given the high demand for its services and products, the Company has been able to expand its operating margin in 2022 at a time when the ECommerce industry has experienced a great deal of margin pressure due to an increase in supply chain inflation from increased material and shipping costs in the industry.

The Company was founded over two decades ago and has developed a reputation within the Ecommerce Industry as an honest and forthright company that delivers value and expertise to its customers.  The Company attributes its impressive growth to the quality of its products and the skill and respectfulness of its employees, as well as the Company’s image as a clean, responsible, and moral company.   Adding to its following in the National market is the Company’s consistent spending on technological advancements and social media platforms over the last several years.

The Company sells home improvement environmental products that offer consistency and quality given the significant wear and tear of these products, particularly in certain regions of the country where homes are exposed to extreme weather conditions.  

The Company also has an excellent positioning to maximize its future growth potential through acquisition of similar companies in their related field. As global warming expands throughout the USA, this company will be at the forefront of adapting to changing residential needs. Having a company that makes it a point to stay ahead of the technology in the industry will be a major advantage of this Ecommerce company’s ability to stay ahead of the competition. It can also be the model for future growth through advancing the capability of its acquisition targets to also stay ahead of the competition.  

During the recent Covid period, this company has grown exponentially and while profit margins decreased due to shipping increased costs, they are now coming back down. They have ensured that their employees did not suffer through the pain other companies endured that forced reductions in staff and pay in order to survive. In fact, this company continues to ensure it stays ahead of the competition by investing in its employees and marketing and keeping ahead of the curve by investing in inventory that they know will be needed. They will continue to stay ahead of the competition by maintaining a strong staff of long term, dedicated employees.

Company & Market Highlights

• Started by Company founder in the 1990s and changed to a father-son duo E-commerce operation in the early 2,000’s and has experienced consistent growth and profitability ever since.
• The Brand is one of the most Generic and recognizable HVAC e-commerce domains online.
• Very established direct relationships with Manufactures domestically and internationally with multi-million-dollar lines of credit.
• Company is an industry pioneer and one of the first and only pure-play HVAC-e-tailers online
• Company and its founders have been featured in Entrepreneur magazine as well as INC magazine list of the fastest growing companies in America
• Company has an established management structure that can operate independently of the Company owners or in the alternative expand nationally through creating a national network.  
• Company operations are managed with experienced leaders and can take over if requested.
• The Company enjoys a high degree of visibility and customer awareness in its target market due to its consistent investment in marketing and outreach.      
• The Company does not have many pure play HVAC competitors who are significantly larger than they are and most of the competition in the market cannot offer the same pricing.
• The Company has begun its private label strategy and seeks to continue rolling out more products under its trademark brands
• Expanding through building or linking with a network of companies that can handle installations & service is key to expanding success. Each referral company becomes a potential acquisition target on which to build that national network. 
• Using the most technologically advanced sales techniques and software. Always expanding through additional marketing sources such as Amazon and Walmart. 

According to IBISWorld, the E-Commerce, and Online Auctions industry, which comprises companies that sell merchandise online, is growing rapidly as more time-strapped and cost-conscious consumers are enticed by the convenience of finding, comparing and purchasing products online easily and quickly. From big-box retailers to specific niche stores, consumers can purchase anything from clothing, precooked meals, bulk home goods and collectible antiques from their computer or smartphone. Driven by increased consumer spending and the rapidly growing number of total internet connections, revenue for the industry is expected to rise an annualized 16.1% over the five years to 2022, including an anticipated 7.1% increase in 2022, to reach $934.2 billion. Additionally, the industry experienced significant growth in 2020 as the COVID-19 (coronavirus) pandemic provided consumers with an outlet for socially distanced shopping.

The rapid and continuous rise of the internet has given industry companies the opportunity to reach hundreds of millions of customers without opening even a single store. Faster internet speeds and a surge in mobile device use have contributed to the mainstream adoption of internet shopping, which has contributed to stronger industry operating profit. Economies of scale have also helped large industry companies boost profit, as these companies are able to achieve better purchases and shipping rates. Finally, wage expense has been outpaced by revenue growth, as new technology has increased per-employee productivity, which has reduced the number of hires needed to keep up with rising demand.

Over the five years to 2027, the industry is expected to continue on its current course as internet traffic volume continues to grow and spending further shifts from traditional retailing to e-commerce. The greatest opportunity for growth will come from product categories that were traditionally dominated by brick-and-mortar shopping, including groceries, major appliance products and clothing. Over the next five years, revenue is estimated to increase at an annualized rate of 7.7%, reaching $1.4 trillion in 2027. As revenue continues to increase, the number of enterprises is also expected to rise. To effectively compete in this increasingly competitive market, companies will need to continue to differentiate themselves from competitors using targeted marketing campaigns, offering a wider range of products and implementing new technology.