Achieving profitability as a high cost product and distribution model
Posted: Thu Feb 06, 2025 9:17 am
We quickly found out that it’s also very hard to compete. The same reasons why it’s easy to get started are the reasons why there’s no barriers to entry. We pivoted several times and landed on what we do now, which is primarily power equipment generators. We do a lot of other products, but generators make up a big chunk of what we do.
With generators or with heavy equipment in general, the manufacturers are a lot less willing to do dropshipping. We happen to have a warehouse that our father was not using at the time, so we were able to move into that and take advantage of that resource that a lot of other companies didn’t have. At the time there was a lot less competition because you had to have a place to store the equipment, you had to have machinery to move it. You had to get shipping rates that would be sufficient to croatia telegram screening compete with a lot of the bigger guys. We pivoted to that and it worked out better than air purifiers.
Felix: You mentioned the low barrier of entry. What is your background? How did you get into this business opportunity?
Eugene: I started this business with my brother Mike. Before we did FactoryPure, we had another ecommerce company where we sold electronics, We learned a lot about ecommerce in general in the first business, so we decided to stick with what we knew. When we started FactoryPure, it was a lot easier to scale because there was Shopify and several companies similar that allowed you to create a scalable website yourself that does all the backend analytics and administration, which we didn’t have with the first business.
With generators or with heavy equipment in general, the manufacturers are a lot less willing to do dropshipping. We happen to have a warehouse that our father was not using at the time, so we were able to move into that and take advantage of that resource that a lot of other companies didn’t have. At the time there was a lot less competition because you had to have a place to store the equipment, you had to have machinery to move it. You had to get shipping rates that would be sufficient to croatia telegram screening compete with a lot of the bigger guys. We pivoted to that and it worked out better than air purifiers.
Felix: You mentioned the low barrier of entry. What is your background? How did you get into this business opportunity?
Eugene: I started this business with my brother Mike. Before we did FactoryPure, we had another ecommerce company where we sold electronics, We learned a lot about ecommerce in general in the first business, so we decided to stick with what we knew. When we started FactoryPure, it was a lot easier to scale because there was Shopify and several companies similar that allowed you to create a scalable website yourself that does all the backend analytics and administration, which we didn’t have with the first business.