Michael Simpson is a New Mexico-based father of seven and a National Guard veteran. Returning from a 2021 deployment, he sought a business to acquire, hoping to move on from his previous job. A listing from the Quiet Light brokerage caught his attention.
Discount Catholic Products had launched in 2003 and was for sale. The company’s mission appealed to Michael. Plus it was not reliant on Amazon or a single product or imports from China — all key requirements. He purchased the business.
Fast forward to 2025, and the retailer perseveres. Michael’s role has evolved to part-time oversight. A single employee, his sister-in-law, runs daily operations with help from his kids.
In our recent conversation, he and I discussed financing the acquisition, cash flow challenges, marketing tactics, and more. Our entire audio is embedded below. The transcript is condensed and edited for clarity.
Eric Bandholz: Who are you, and what do you do?
Michael Simpson: I own Discount Catholic Products, an online retailer of spiritual goods, such as prayer cards, decorative crosses, and church supplies. It launched in 2003, and my wife, Catie, and I bought it in 2021. We ran it together for a couple of years, but recently I accepted a job with the National Guard, where I’ve served for 22 years. We have seven kids who help with the business, as does my sister-in-law, our only employee.
I found the business through Quiet Light, a brokerage. I’d been on their email list for a year. I wanted something that wasn’t reliant on Amazon, with its own website, not tied to a single product or imported from China. I also wanted a product I could genuinely care about. This listing was the first that fit my criteria and budget.
I saved about $40,000 for a down payment from a deployment in Africa with the National Guard. After returning, during the pandemic, I didn’t want to go back to my old job.
To acquire the business, we injected our down payment and borrowed from the Small Business Administration, securing a 10-year loan at a 5.5% interest for the first five years. Plus the seller carried 5% of the purchase price on a 10-year loan. I also secured a line of credit early, which I highly recommend.
Four years in, we’ve paid about 25% of the debt.
Bandholz: Has the business met your expectations?
Simpson: There were definitely surprises. The business carried about $75,000 in inventory across thousands of SKUs. I negotiated that down to $65,000, but probably still overpaid by $15,000. A lot of it was stale items that sold maybe one unit a year or not at all.
I also underestimated working capital needs. I figured cash flow would be smooth with immediate revenue from customers and 30-day terms with U.S. suppliers. However, our cash quickly evaporated as we expanded and purchased more inventory.
I assumed only about 10% of products were drop-shipped, mostly larger or more expensive items. In reality, it was a lot more. That became a problem as the global supply chain fell apart during Covid. Products from Italy, China, and even the U.S. were delayed or unavailable, leading to backorders.
So early on we shifted to more in-house inventory. We now run our own warehouse from our base in Albuquerque, New Mexico. We sell and ship low-cost, low-margin, lightweight products. The pick-and-pack fees of a third-party fulfillment provider would wipe out profits.
Bandholz: Did the seller have employees?
Simpson: She ran it with a friend, who handled pick, pack, and ship, as well as customer service. She decided to sell when the friend couldn’t continue. I underestimated the amount of work involved. I assumed my wife and I could handle it easily.
But it turned out to be nearly full-time for both of us. My wife handled fulfillment, while I managed customer service, reordering, website updates, and finances. We hired an employee early on, but she moved away. The next hire didn’t work out. So for about two years, my wife was doing fulfillment a few times a week, and I was managing everything else.
Then we had our seventh baby about a year ago. With a newborn and several homeschooled kids, my wife couldn’t keep working in the business. So we hired her sister, and it has worked out well. She works part-time, from about 9:00 a.m. to 1:30 p.m. — enough time to handle fulfillment and customer service.
Bandholz: You’re now employed outside the business.
Simpson: Yes. I realized a few months ago I was borrowing from our line of credit to pay myself a modest salary, which made no sense. I’d been praying the business would improve, and soon, an unexpected opportunity came up — working with the National Guard on a local project. It pays double what I was paying myself and has regular hours, so I took it. Now I’m focused on reducing debt and stabilizing the business, which is being run day-to-day by our one employee.
We have a 30% contribution margin, but that wasn’t enough to cover fixed costs and my salary. Once I stepped back, the business became profitable again. Ironically, sales are now up even though I’m barely involved. A mastermind peer joked, “I think you found the problem!”
Now I’m focused on high-impact tasks such as ordering inventory and launching email campaigns. I’m training our employee to take on more responsibilities. My goal is to fully step out of daily operations and focus on long-term growth — working on the business, not in it.
Bandholz: How do sales break down between individuals and churches?
Simpson: About 80% of our sales come from individuals, with the rest from churches and schools. We have amazing customers.
One woman received a broken statue, so we shipped another. She ended up fixing the first one, sold it on eBay, and sent us the money. Another customer purchased a replacement necklace, then found the original and asked to pay for both. We’ve had dozens of stories like that — just honest, kind people.
Churches are great customers. They place large orders — $500 to $1,000 — but without the red tape of big organizations. Often, it’s parish secretaries or priests placing the order, and they tend to buy year after year.
Bandholz: What’s your marketing strategy?
Simpson: We’re primarily a demand capture business, not demand generation. Meta Ads haven’t been profitable — we’re lucky to break even. However, Google Shopping ads consistently deliver a return of 4.0 or higher. We also rely on organic search traffic. Social media has never been a big sales driver.
Email has been critical. The previous owner had a distinct tone, but we’ve since shifted to our own voice, which resonates well. Customers often respond warmly, and many older buyers even call to place their orders directly.
Bandholz: Where can folks buy your products and connect?
Simpson: Our site is DiscountCatholicProducts.com. I’m on X and LinkedIn.
