Website Closers® presents a Vehicle Accessories company that has built up a thriving B2B base within the rapidly expanding trucking industry. With trucks federally mandated to keep their cargo space secure, this brand has found a highly receptive market for its specialized equipment designed to secure cargo being transported by trucks.
Having enjoyed a rapid increase in profits in the past year and with a rising 25% Repeat Customer Rate, the company is doing exceptionally well in this niche vertical, selling both to trucking companies, individual truck owners, self-employed truck drivers, and retailers that stock products specifically for the trucking industry. With an Average Order Value of $1,000 and 17 SKUs, the company could experience phenomenal growth by adding to its current catalog, making new products available for upsells and cross sells, and expanding into technologically innovative products that competitors are not offering.
One reason this is such a fast-growing business is that the truck industry is such a vital part of the U.S. economy, with 80% of U.S. commodities now relying on trucks for delivery of common goods and products that consumers buy regularly, helping the trucking industry to earn $875 billion in revenue in 2021.
Just as truck operators need to move on packed highways and during adverse weather conditions, cargo safety has become a major issue for them, and this business was able to accurately recognize the growing need for specialized parts that help trucking companies meet federal safety guidelines. That includes the requirements of the Federal Motor Carrier Safety Administration, which mandates the use of proper cargo securement to prevent damage to items the truck is carrying and to promote the truck’s safety on the road.
This is a growing trend across the industry and one this company wisely capitalized on. As the trucking industry shifts into high gear to meet those federal rules, this company has enormous potential to scale rapidly by increasing the range of its products to literally sell everything related to trucking and cargo safety, including a long list of parts and accessories built for trucks and trailers.
There are additional ways for the company to scale since the foundation is there for both increased brand recognition and skyrocketing new revenue.
The company operates entirely online through its Shopify website, sourcing its products directly from manufacturers in the U.S. and other countries. All products are sold under their brand name and have the company name printed on them.
Their products are specifically designed to help trucks maintain federally mandated safety rules, ranging from flatbed tarps to chain binders, ratchet straps, coil racks, and thick blankets for load protection and cover. The company owns all tools used to manufacture them.
A key aspect of the company’s appeal has been their competitive pricing and the attention given to customer service. They provide high-quality products at a good price, and with a fast delivery, giving them a strong enough reputation within this industry that they now benefit from word-of-mouth referrals from one trucking business to another.
Customers have also started to recognize their brand name on certain products, leading them to seek out the company’s website for their own needs. They now serve a wide range of customers within the larger trucking industry, including over-the-road trucking, long-haul trucking, local businesses and self-employed truck drivers, and shops that cater to the needs of this large industry.
Sales have increased sharply since inception.
The company stocks 100% of its products, shipping them from its 1,500- square-foot warehouse. Inventory is usually well stocked for a six-month supply to keep up with orders, although during busy sales periods, the company typically orders extra inventory.
The current ownership now works around 30 hours per week on the business, with an employee on board to handle packaging and shipping. A second employee could be brought on to monitor and process new orders, which would reduce the owner’s weekly workload significantly.
The company has strong relations with its suppliers, giving this brand the ability to maintain a reliable inventory of products their customers are looking for, and they have a clear edge over competitors because it eagerly fills smaller orders for customers that are hard to find through rival businesses that primarily focus on fulfilling large orders.
Digital marketing represents one of this company’s strongest scale opportunities outside of launching new products.
The company has primarily relied on PPC ads on Facebook, Instagram, and Google to drive sales, and it has worked very effectively for them, recently increasing their Repeat Customer rate from 10% to 25%.
This marketing campaign has given the brand an average of 6,000+ unique monthly visitors, or about 2,000+ a month.
There are ways this company could boost its organic traffic and enjoy much higher revenue in the future. One would be to fully optimize their website through an SEO program that uses popular keywords to get them higher rankings in search engines. That could also include launching a blog on the website to attract new visitors.
A social media marketing campaign and an email marketing campaign would both effectively drive sales higher as the company began launching new products, giving them the ability to highlight each new SKU to their existing customer base.
This is a small business with fantastic potential. The company has established a loyal customer base with just 17 SKUs and has built up strong brand recognition and a reputation for quality products within the trucking industry while demonstrating a great deal of insight by marketing products specifically designed to meet cargo safety rules.
With plenty of solid opportunities to scale this business, this is a leader in its niche space just waiting for the right investor.
