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How This Sneeze Guard Business Earns 66% Margins
Oct 11, 2024
Discover the intriguing world of a sneeze guard manufacturing company with striking 66% margins. The hosts delve into the business's unique niche, addressing its high revenue potential amid low sales. E-commerce dynamics and the impact of COVID-19 are explored, alongside the challenges of operating in expensive California real estate. They also discuss future growth fueled by proprietary software and the significance of SBA loans for potential buyers. Will this quirky venture be a gold mine or just an oddity?
31:28
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Quick takeaways
- The sneeze guard business is displaying impressive profitability with a 66% margin despite the challenges of operating in a high-cost California market.
- A strong online sales component and proprietary software indicate significant growth potential, although low sales volume raises concerns about resource utilization.
Deep dives
Overview of Sneeze Guard Business
A California business specializing in sneeze guards is for sale, which gained prominence during the COVID-19 pandemic due to heightened health standards. These sneeze guards, primarily designed to protect food from respiratory droplets, comprise the company’s main product line, making up 90% of its revenue. The business boasts a high margin with a gross revenue of $750,000 and an EBITDA of $500,000, indicating a 66% profit margin. The company also has a strong reputation and customer base across all 50 states, leveraging both online sales and a certification from the National Science Foundation to enhance its credibility.
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