Dive into the world of a $10M dropshipping sauna and cold plunge business! The hosts debate if wellness trends are here to stay or losing steam. Learn about the challenges of selling high-ticket items, especially in an evolving market. They share insights on customer psychology for big purchases and the complexities of managing dropshipping risks. Expect laughs as they discuss everything from market dynamics to competitive fitness cultures, making for an entertaining and insightful listen!
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insights INSIGHT
High-Ticket Dropshipping Dynamics
High-ticket dropshipping allows higher customer acquisition costs due to longer consideration cycles.
Customers won't impulse buy saunas; marketing requires patience and education.
volunteer_activism ADVICE
Educate Buyers for Big Purchases
For products over $150, expect considered purchases needing education and retargeting.
Use multi-touch marketing like emails and education to boost conversion on high-price items.
volunteer_activism ADVICE
Use Phone Sales for Custom Products
Operate a phone line for custom, high-ticket e-commerce products to handle detailed buyer questions.
Phone conversations increase conversion rates and address fit, setup, and customization concerns.
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This week, the Acquanon crew dives into a $10M revenue sauna and cold plunge e-commerce business — but is the heat already fading on this high-ticket trend?
Sponsors: 💸 This episode is sponsored by Capital Pad — the go-to marketplace for connecting acquisition entrepreneurs with investors. Whether you're buying a business or want to back someone who is, Capital Pad streamlines the entire process. Check them out at https://www.capitalpad.com
🧠 Powered by Acquisition Lab — founded by Harvard MBA Walker Deibel, the Lab helps aspiring business buyers navigate search, diligence, and acquisition with expert support and community. Head to https://www.acquisitionlab.com
In this episode, Michael, Heather, and Bill analyze a dropshipping business doing $10M in revenue with $1M in EBITDA, focused on premium home saunas and cold plunges. With growing consumer interest in wellness and longevity, the panel debates whether this high-ticket e-commerce model has staying power or if it's already on the downslope of a health fad. They also explore dropshipping risk, marketing moats, and the nuances of buyer psychology when purchases top $5,000. Plus, the team reflects on tariffs, moats, and even Peloton culture in a classic Acquanon blend of laughs and insight.
Key Highlights:
A breakdown of a $10M sauna/cold plunge e-commerce brand asking 5x EBITDA
Challenges and risks of dropshipping large, high-ticket items
Whether this wellness niche is a lasting trend or already peaked
Insights on customer acquisition for $5K+ products
Could AI play a role in considered purchases?
Why SBA lenders might think twice about funding this deal
Romanticizing capitalism, one sauna sale at a time
Acquisitions Anonymous - #1 for business buying, selling and operating