Concrete Carbon Parts (Concrete Carbon), is a California-based firm that designs and manufactures a variety o carbon fiber seatposts. The California L.L.C. founded the company. The owner has run the business from his home for the past one year. The company has sold individual seatsposts through the Internet to customers and the owner wants the company to go to the next level.
Concrete Carbon is a supplier of high-end carbon fibre seatposts. The shafts are made from custom-drawn carbon fibre and the head unit is CNC machined from 6000 series aluminum. Josh has developed a unique design for posts after extensive torture testing. Concrete Carbon can offer high-end seats for road and mountain bikes that are light and comfortable thanks to carbon fiber’s natural ability to disperse vibrations. They are also completely safe. Concrete Carbon has yet not experienced a failure of a seatpost.
Concrete Carbon’s competitive edge is based on its product, it is able to offer a range of posts to properly fit each individual rider. The range of posts are based on rider weight. There is no manufacturer that offers custom fitting. This is very important as it affects the ride, safety margin, weight, and other factors. The post can be tuned to the rider’s weight, ensuring that the rider is safe and comfortable. The post has so much flex that it can be described as a type of suspension.
Concrete Carbon will utilize an outsourcing model to produce. Concrete Carbon can then concentrate on what is most important, serving the customer. Production will be outsourced by two industry leaders. Josh will supply the subcontractors with the design details. The parts will be made to order by them. The subcontractors were chosen in part on Josh’s networking contacts established with them prior to Concrete Carbon. They were also selected for their ability to scale up production as needed.
Concrete Carbon sells seatposts only to individuals. Concrete Carbon will need to start selling seatposts to new customers in order for it to grow. Concrete Carbon has decided to start selling to distributors. With 343,009 customers potential, the annual growth rate of individual customers is 10%. The growth rate for distributors is 4% with 14 potential customers. While the growth rate of distributors is not that high the sheer volume that distributors will sell and buy relative to the individuals makes the potential market very exciting.
Concrete Carbon will employ two somewhat distinct marketing strategies to reach its perspective customer segments. The first strategy uses the website to raise awareness of Concrete Carbon’s parts to individual consumers. The website has been in operation for a year. Continuous improvements will be made to it. Concrete Carbon will be present at various trade shows in the industry to build sales relationships with distributors. The best place to make new connections with potential distributors is the trade show. Concrete Carbon will be able to invest trust in many relationships because business relationships are built on trust.
The first year’s sales will be $119,000 and then rise to $332,000 the second year. Concrete Carbon Parts will see a steady increase in profitability and gross margins over the next three-years.
1.1 Keys to Success
- Products designed with precision.
- Follow up on all promises made to vendors and customers.
- Strict financial controls.
It is Concrete Carbon Parts’ mission to create the finest quality carbon seatposts on the market. All of our products will benefit from lightweight, comfort, safety and lightness.
- To become the world’s leading manufacturer of carbon seatpost bicycles.
- Concrete Carbon should increase sales in order make it a sustainable enterprise.
- You can significantly increase your sales by entering a new market segment.