Introduction
As a firefighter seeking new challenges, Ken Eyjolfson successfully acquired Mr. Liquidator, a Vancouver-based mattress warehouse retailer. In this interview, he reveals why buying retail business made strategic sense after exiting his Soccer Shots franchise. Discover how he transformed this $1.9 million revenue business with 25% net margins while maintaining his firefighting career.
Founder Success Story QnA
What was it that led you to want to buy a business?
I became a firefighter at 22. After years in the fire service, I realized it’s all seniority-based with no merit promotions. I knew a guy who started Soccer Shots in Orange County so I thought owning a business would be rewarding. When we weren’t at the fire hall working shifts, we built that franchise from scratch.
How did the Soccer Shots business end?
Our director of operations wanted to buy it, and my partner was ready to exit. Then COVID hit. We sold it during the first two months of lockdown for three and a half times earnings. She could see where she could add value immediately and knew our operational mistakes.
What made the mattress retailer stand out after your four-year search?
Coming from a service business with 5,000 kids, I knew I wanted something easy to operate. Mr. Liquidator sells mattresses and bedding from one retail location with 35,000 Facebook followers and 700 five-star Google reviews. It had a stable manager with 8 years experience selling mattresses and a laborer who worked in the warehouse.
Describe the business model and why it works
We operate from a warehouse keeping lease costs low. Mattresses stay in plastic bags on the floor creating urgency. We hold $70,000-$100,000 in Serta and Beauty Rest inventory so customers drive home same day. No comfort guarantee means we can be 60-70% cheaper than competitors. People come in after shopping at big retailers seeing the same mattress for $3,500 elsewhere selling for $1,500 here.
How much revenue does the business do and what are margins?
In 2024, business sold $1.9 million worth of mattresses – about 2,500 units. When we bought it, adjusted numbers showed just south of $500,000 in SDE. Operating expenses are around $40,000 monthly including $8,000 for marketing. That gives us just under 25% net margins.
How did you structure the deal and finance it?
We paid $815,000 plus $50,000 for inventory totaling $865,000. Financing was 75% from BDC (Canada’s entrepreneurial bank), 12% seller note at 5% interest over 5 years, leaving 13.5% out of pocket – less than $100,000 each for me and my partner. We got the first six months interest-only to ease cash flow.
Ken Eyjolfson Business Stats
Ken transformed this Vancouver-based mattress warehouse into a cash-flowing business with exceptional metrics. His acquisition demonstrates how niche retail models can thrive with proper positioning. Below are key financial and operational benchmarks.
- Yearly revenue: $1.9 million
- Monthly revenue: $158,333
- SDE (Seller’s Discretionary Earnings): $500,000
- Net profit margin: 25%
- Operating expenses: $40,000 monthly
| Business Metric | Value |
|---|---|
| Annual Revenue | $1,900,000 |
| Acquisition Price | $865,000 |
| Revenue Multiple | 0.45x |
| Employee Count | 4 full-time |
Ken Eyjolfson Method
Ken’s systematic approach focuses on operational simplicity and customer experience. His methods transform commodity retail into a differentiated experience with multiple revenue streams. Here’s his core methodology:
- Position as instant-gratification destination with mattresses in plastic bags on warehouse floor
- Maintain deep inventory ($70k-$100k) avoiding fulfillment delays
- Eliminate comfort guarantee to reduce risk and improve margins
- Leverage exclusive wholesale agreements with Serta/Beauty Rest
- Convert unhappy customers from previous ownership into promoters
- Build multi-channel sales through Facebook marketing and wholesale hotel contracts
Ken Eyjolfson Tools
Hiring a dedicated digital marketer was crucial for scaling Mr. Liquidator’s online presence. Ken’s tool strategy focuses on reinforcing credibility while driving local traffic through proven channels:
- Facebook Ads: Primary channel leveraging 35,000 existing followers with hyperlocal targeting
- Google My Business: Maintaining 700+ five-star reviews for local SEO dominance
- Inventory Management System: Replaced previous paper-based tracking for accuracy
- CRM Tools: For customer follow-up on service issues and repeat sales
Key Notes
Ken’s journey reveals counterintuitive truths about retail acquisition. These insights separate successful buyers from tire-kickers:
- Avoid rolling personal expenses through business – clean financials increase sale value
- Key employee risk can be managed through bonuses, respect and cross-training
- Manufacturing relationships matter but retailers control the mattress industry in Canada
- Online mattress disruption is plateauing – Canadians prefer tactile shopping experiences
- Seller financing (12%) was critical for closing this non-SBA Canadian acquisition
Get Started in Just 5 Steps
Follow Ken’s proven path to acquire your own retail business without starting from scratch. These steps leverage existing assets while minimizing risk:
- Build banking relationships early with pre-approvals before making offers
- Focus on service-light businesses with minimal staff dependencies
- Verify supplier relationships directly with manufacturers before closing
- Keep financials ultra-clean with zero personal expense leakage
- Allocate 15%+ of acquisition cost for immediate operational improvements
Conclusion
Ken Eyjolfson proves that buying retail business wisely can create outsized returns with manageable risk. His Mr. Liquidator acquisition leveraged existing brand equity, inventory systems, and customer reviews to accelerate growth immediately post-purchase. For operators willing to replace worn-out systems while preserving core strengths, retail acquisitions offer a compelling path to ownership without startup uncertainty.