Updated Feb 27, 2024:
I was shopping today for tools and accessories, and I noticed that Walmart still is not stocking ToughBuilt in the stores, but carries many SKUs online. The Mutual Ace Hardware near me is only stocking the utility knife/scraper in-store, but the rural Ace Hardware in Zion, Illinois, near the Wisconsin border, has a significant soft goods selection (~40 product SKUs). I was surprised to see two sellers on eBay with many listings of ToughBuilt products, and each one has dozens to hundreds of units for sale from ToughBuilt. They are all in new condition. They sell for reasonable market prices. It made me wonder where they get their merchandise from. Are they a reseller community that is being stocked with merchandise? Are they grey market or black market? Do they take an order and buy from somewhere else and hope for a reseller markup? Today, I asked them. Did a 'contact seller' message. One seller responded the next day and told us their products came from the manufacturer, they have inventory in stock, and that manufacturer warranties would be honored. This is interesting because it means ToughBuilt is lining up resellers for their products in the eCommerce space outside normal channels. This should grow revenues and distribution, helping them achieve scale (albeit at small scale). It is interesting how challenging it can be for an innovative, hard and soft goods designer and manufacturer to grow their distribution channel, and how no stone can remain unturned to reach potential customers. Of course, the largest channels, like Lowe's and Amazon, will require the most care but it will take global distribution, both in-store and on-line, to achieve the kind of revenue required to achieve minimum profitable scale.
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Stock Market BLOGJeffrey CohenPresident and Investment Advisor Representative Archives
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