The business we are selling is called, Door Deals. Door Deals is a print advertising business, which specializes in door hanging advertising. Our product is 7 inches by 27 inches and has 22 available spots for advertising - 11 on the front of the hanger and 11 on the back. Each spot for advertising is primarily used to advertise a coupon. We sell each spot from a range of $350 to $275 depending on the terms of the contract. We distribute the hanger to zones of 10,000 houses over 2 months. Clients advertising on the hanger pay for the spot each month.
Breaking this down to dollars and cents - If you were to open a zone and sell each spot at an average of $300, the revenue produced from the hanger will be $6,600 per month. We then will create your art, build your hanger, print, print, and ship your hanger for $3,500 for every 10,000 hangers. Meaning, you will collect $6,600 on month one and pay $3,500 and bring home $3,100. You second month you will net the entire $6,600 because the printing shipping, etc has already been paid for. Distribution typically costs $500 per month. At the end of a 2 month cycle your profit (based on this scenario) will be $8,700 per zone. As you can see, one zone is not necessarily great, but once you have opened 2-3 zones, your profit becomes more attractive.
We are selling a license agreement to be a Door Deals dealer. Since opening our doors 4 years ago we have grown to 20 markets because our model is very simple and straight forward. If you are interested, let me know and I'll get you the NDA, materials, sample hangers, set up a phone call, and we can dig in a little deeper. Email for details.