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Hi there,
yesterday I've been discussing with a friend about selling and delivering wooden pellets to be used with stoves.
I'm currently in the north of Italy, and in the recent years this bio-fuel has been literally exploding, with over 2mln stoves currently active and Italy consuming over 40% of the volume consumed in Europe.
What attracts me is :
* high revenue per sale (selling per pallet/truck)
* healthy margin that justifies big PPC spending (to later scale the sales process)
* low competition (it's a business with low-barrier : all you need is a way to deliver the pellets and somewhere to store them : they have no expiry date, so even investing a few grands in buying a whole trailer in cash, means that I could be able to make the money back by simply selling wholesale at a lower cost)
* recurring business : a normal household would consume about 1 pallet per 30 up to 45 days, so during the whole season I'd be able to make a few sales per single customer
What scares me :
* logistics : it takes some effort to deliver these pallets, I'm no logistics mastr, I'd go the outsourcing route, but there's not many options around and frankly I'd like to take care of the first delivery
* import from a extra EU country : it's a smaller concern, that can be easily taken care off
* competition : while the level is pretty low, there's already a few competitors, at least on a regional scale
I still haven't looked into possible sales channels beside PPC, classifieds, flyers and bandit signs (I guess it's enough to get started and try out 😀).
I'd like to get some devil advocate kind of advice, to spot the real pain points and if anybody has been doing this already it would be great to talk about it in private.
Also, this idea, if I can prove it right, due to it's scalability limit, can be copied and cloned pretty much all around the world (as long as there's a need for the product).
yesterday I've been discussing with a friend about selling and delivering wooden pellets to be used with stoves.
I'm currently in the north of Italy, and in the recent years this bio-fuel has been literally exploding, with over 2mln stoves currently active and Italy consuming over 40% of the volume consumed in Europe.
What attracts me is :
* high revenue per sale (selling per pallet/truck)
* healthy margin that justifies big PPC spending (to later scale the sales process)
* low competition (it's a business with low-barrier : all you need is a way to deliver the pellets and somewhere to store them : they have no expiry date, so even investing a few grands in buying a whole trailer in cash, means that I could be able to make the money back by simply selling wholesale at a lower cost)
* recurring business : a normal household would consume about 1 pallet per 30 up to 45 days, so during the whole season I'd be able to make a few sales per single customer
What scares me :
* logistics : it takes some effort to deliver these pallets, I'm no logistics mastr, I'd go the outsourcing route, but there's not many options around and frankly I'd like to take care of the first delivery
* import from a extra EU country : it's a smaller concern, that can be easily taken care off
* competition : while the level is pretty low, there's already a few competitors, at least on a regional scale
I still haven't looked into possible sales channels beside PPC, classifieds, flyers and bandit signs (I guess it's enough to get started and try out 😀).
I'd like to get some devil advocate kind of advice, to spot the real pain points and if anybody has been doing this already it would be great to talk about it in private.
Also, this idea, if I can prove it right, due to it's scalability limit, can be copied and cloned pretty much all around the world (as long as there's a need for the product).
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