Hello, Is it possible to get further info on the ig and shopify store? Thanks
Please PM me the handle and site and what’s your highest offer at the moment?
very instered, can you please pm store link please, i also have a couple of more questions that i will pm you after
Replied to everyone via PM!!!
Ig name and shopify website please
I am sorry, but this is not accurate. I have to post my opinion to help potential buyers. I have been in business for 10+ years and my husband has owned multi-million dollar businesses and projects. We deal with valuation daily. There is not 1 store on this planet, online or brick and mortar that is going to get a 20-25x valuation on sales. That is absolutely unheard of. If that was the case, I could open a shopify store (which I own 72 shopify stores) and sell 1 item for $100. Then list my store for $2,000 on the exchange. That is not how it works. For a store to be worth anything it needs several things going for it:
sales need to be constant for months on end with no gaps and the website needs to be currently active.
…A) I see too many people selling shopify stores saying: amazing store, made so much money. site isn’t active but I will bring back online for the right price.
…1) if the site did so well I assure you no business person with any brains would allow the site to go offline to begin with. It just isn’t logical
…B) Sales need to be consistent for at least 6 months and not just consistent but showing growth
…C) No gaps in sales or times when the website wasn’t paid for on time
The items your selling need to be readily available still
Your advertising expense through Facebook Ads and any other paid advertising program need to be a reasonable number per month compared to profits… NOT SALES. A reasonable number would be less than 33% of your net profit after all expenses for the month.
your sales mean nothing. Your profit is what makes an online fly by night shopify store worth money.
Anyone can make a shopify store, import products with a free shopify app, and start drop shipping a niche… run ads on facebook and get $4000 in sales. I could do that in a day on a brand new store. But creating a lasting store with growth, profit, low advertising costs and strong lasting products is what makes a store valuable
If you meet these requirements a 3x-4x valuation is common. Sometimes, depending on the size of the store and its projected growth, you can get a 5x valuation, but those are million dollar per month stores.
Basing your price off of what you see in the shopify exchange is absurd. Those prices are not realistic and have not and never will sell for that. Most are used to advertise. Not to actually sell their page.
These are fly by night businesses. If it was a corporate business your buying that owns an online store and has a brand and name recognition that is a different ball game. I see too many people with big dreams get sucked into these stores and loose their lives savings when they could have done it themselves for a fraction of the price and turn a profit.
Sell your shopify stores, I encourage it, but be realistic about the price. For $35,000 I can buy a brick and mortar store in the midwest doing $100k-150k a year in sales and has a 10 year track record.
@swapd this person obviously hasn’t read my thread and hasn’t bothered to PM me any questions. Literally everything they have said has been completely inaccurate so can this comment be removed?
Im regards to your points I’m going to address them individually and prove just how wrong you are. As far as I’m concerned that comment only acted as an ego exercise for you to slide in how your Husband (not you) owns multi million dollar businesses.
1.) The store has been running for 2.5 years with consisting sales volume and absolutely 0 gaps.
items are readily available. If you bothered to PM me I could tell you just how readily available they are and you don’t even have to hold any inventory.
I HAVE ZERO ADVERTISING Expenses. All it would have taken was to read the thread! All traffic is organic from Google search or through my Instagram page which has 760k followers and will be included in the sale!
the net profit like I keep saying time and time again is 2k per month! Can you read? Seriously.
Do you care to retract any of what you said? Do you have any shame bashing somebody’s business without knowing any facts and potentially turning off a buyer without even being accurate?!
In regards to valuation and brand identity my store is in eccense a brand! If you had asked me for more info you could have seen that the business has brand loyalty (10% repeat customers) and also huge recognition! The valuation is only 1.5× yearly profit which is insanely cheap!
Quite frankly I don’t care what you can get out in the Midwest. Nothing provides more freedom that online working and did I mention I only work about 5 minutes a day!???
Tell me you can do that with a store out in the Midwest and please get down of your high horse
I don’t think A) you read my post completely or B) understood it. I was stating general facts on valuation of shopify stores. I won’t go into a rant on why my opinion should or shouldn’t be considered. The only thing that was stated in those general facts on valuation was your profit. I do not need to ask you for information i can see it. Im a member that can see your link without asking. I have already explored your page and your website and dug a little deeper into it. If you would like me to post specific findings I can. The general post was knocking your valuation as well as giving all potential shopify entrepreneurs insight in general. Nothing more. I do read. I stated many times your profit was claimed at $2000 per month. Not once did i say or claim otherwise. What i did say, is a shopify business making 2000 per month is not valued by yearly profit. It is too volatile and fast paced unlike a brick and mortar store (of which we own over 100 and have never even stepped foot in or had to manage so yes i can say we can do that with a brick and mortar store lmfao)
Shopify stores are valued off profit on a monthly basis x’s a certain number. Typically as i said above 3-6x on average. Since i do this for a living and deal with people who feel their “baby” is worth more than fort knox, i am used to crushing their bubble.
Your company as it stands is valued in my opinion at:
Instagram: $3000-$4000 (if the insights are validated)
Store: $2000 x6 (if you can show your 2.5 years of good sales): $12,000
Total of my opinion: $15,000-$16,000
And here is why:
When dealing with a shopify business owner, if the store was doing good, and only costing you 5 minutes a day (thanks orbelo) then you wouldn’t be selling it unless you needed the money. There is absolutely no reason in the world you would sell passive income. That is the dumbest thing any business person can do.
the store is more work than its worth
you need the money now for something important
there is some hidden reason you want/need to sell
which makes this and most shopify store offerings more of a merchant cash buyout.
Meaning I, the buyer, am giving you a certain amount of months worth of projected profit, again, usually 3-6x sometimes 8x, to buy you out and take over the store.
This gives you cash up front that you would otherwise not have and buys you out. Leaving the buyer to recoup the cost in said months and then make a profit.
There is not 1 investor or buyout firm that is going to wait 18 months to turn a profit on a shopify store. That is just not how it works.
I wish you all the luck in the world.
No because it didn’t break any rules. @Justme23 is entitled to her opinion just as you are. In fact, it seems you addressed everything substantially and I don’t think this will hurt your topic at all.
I will throw my two cents in. Yes, there are certain written and unwritten rules when it comes to evaluations. However, being in this business long enough taught me that buyer demand will trump any rules. If someone really wants/needs a particular niche/website/anything, they will pay through the nose. We can laugh and point at users all we want (I do it too), but I’ve seen some crazy transactions in my lifetime to where I know everything is possible. I’ve literally had a client wanting to pay 1,000,000 USD for an Instagram account all because “I really need it” and “money doesn’t really matter”.
In conclusion, we all need to find a balance between reality and going for the stars with these evaluations
Here’s where I would completely disagree with you. I have had the business trading for over 2 years and have financials supporting all that so it’s mot as volatile as you suggest. Also you didn’t mention once that I said 2k profit and even devoted an entire bullet point to stating how I would be spending so much on ads (when I’m spending nothing).
Let’s just agree to disagree and let the process continue, Ive had multiple offers on and off swapd for considerably more that what you’ve stated let’s put it that way.
We can agree to disagree but you need to learn context of conversations. Not once did i say you run ads. Not once. I was listing how a shopify store is valued. If you sell your shopify store for more than 16-20k ill take back everything i said. There is a sucker born everyday thats willing to spend more than they should on something that isnt worth what they paid for it. Any reputable businessman or woman would due their due diligence on this one. Especially when you cant read context in a simple paragraph
Let me know how it goes.
Ok then. Put this into context. Why would you even bring it up if I stated I had no advertising costs? And when I basically needed this conversation why have another dig for no reason but to lift your own ego. Your wrong, face it and move on. You say a stickers born every day but so far I’ve had multiple offers way above what you’ve stated, not just one. They can’t all be wrong, ever considered the possibility you are wrong?
Again, maybe your not understanding the point of my comment. Which is fine. I wish you the best of luck with your store and your instagram.
For anyone making an offer, do your homework. Whether its this shop or any other.
Points to take into consideration:
this company does not own the name desirewear it is a generic clothing term that they capitalized on with good seo search results.
The instagram account loses 11k-15k followers per month and it continues to go down.
Over 35%-40% of the followers are deemed fake on numerous instagram auditor sites
The instagram accounts average likes and comments are low compared to other accounts of the same size
with the amount of people and traffic that should be going to this store based on SEO and the instagram following the conversion rate of sales is very low.
Numerous companies under the desire brand with very similar names to this one have folded and have horrible reviews on trust pilot and other review sites.
This is just a sample of my due diligence I did for a long time to try and justify your valuation. I gave you the benefit of the doubt while i waited for more info. When i didnt find the justification i posted my OPINION. You didnt like it. You responded and here we are. I do not have a high horse to sit on. I am humble and thankful for everything i have. In life there are going to be things you dont agree with. I appreciate and respect the fact that you dont agree. We have agreed to disagree. Lets leave it at that. For the last time, good luck with your store
I couldn’t resist