In 2016, a mid-sized US trampoline parts retailer was stuck. $500K in annual revenue, but only $25K in profit. Razor-thin 22% margins. Ten unreliable distributors. $50K-80K trapped in slow-moving inventory. Sound familiar? This is the complete story of their transformation—the exact 3-phase process, month-by-month results, and the specific strategies that tripled their profit margins while giving them complete control of their business.
"What if we could buy directly from a manufacturer who actually understands the trampoline business?"
Rich understood exact quality specifications, material requirements, and the operational realities of running a tram
For the first time, the retailer could define their own quality standards, bring custom designs, and communicate d
The partnership offered unprecedented flexibility: 100+ SKUs per container, small quantities per item, and the ab
The partnership was built on mutual understanding and long-term thinking. Both parties invested in building a su
had improved dramatically, proving that the strategic shift from reseller to manufacturer partnership could deliver
Margin Increase From 22% to 68% gross margins
Annual Profit Added Sustainable, repeatable growth
Product SKUs Expanded from just 50 items
Partnership Length Still working together since 2016
The retailer was generating $500,000 in annual revenue but barely clearing $25,000 in profit after expenses. Every month felt the same: work harder, earn less. Their problems weren't unique—they're the same challenges most trampoline parts retailers face:
Problem 1: Razor-Thin Margins
Gross margins languished at 20-25%, leaving minimal room for operational expenses or growth investment. They were completely dependent on dropshipping arrangements that offered zero negotiating power.
Problem 2: Distributor Chaos
Managing relationships with 10+ distributors created administrative nightmares. Inconsistent quality, unreliable service, and constant stock-outs meant the business had no control over its own destiny.
Problem 3: Capital Trapped
Between $50,000-80,000 sat tied up in slow-moving inventory from forced case-lot purchases—buying 500-unit minimums when they only needed 50. Distributors required full cases or nothing, which meant over-ordering slow movers just to get access to fast movers. Cash flow suffered as capital sat frozen on shelves, while opportunities to invest in better-selling items passed by.
Problem 4: No Quality Control
Distributors controlled all product specifications—material grades and design standards. Retailers had zero input. Want higher-quality springs? Thicker safety pads? Custom improvements? Not possible. You sold what they decided to stock, which meant competing with identical commodity products at identical quality levels, with no way to differentiate.
The transformation didn't happen overnight. We used a carefully structured three-phase approach that validated quality, mitigated risk, and systematically transitioned them from distributor dependency to manufacturing partnership—while maintaining business continuity throughout.
Phase 1: Quality Validation
They tested 10 of their top-selling SKUs head-to-head against their current suppliers.
Results? Source A Product’s parts outperformed across every metric: quality, compatibility, and durability.
Quality Standards Alignment
Small Quantity Sampling
Risk Assessment
Phase 2: First
Container
Instead of buying 500 units of one SKU, they ordered 100+ SKUs in small quantities 20–50 units each.
That single shift unlocked flexibility, variety, and faster turns without tying up cash.
Container Loading Optimisation
Logistics Coordination
Customs Clearance Management
Phase 3: Full
Transition
Systematic replacement of distributor inventory, SKU expansion from 50 to 200+ items, universal fit strategy implementation, and marketing materials updates.
Customer Communication Stratagy
Brand Positioning Enhancement
Market Expansion Initiatives
Critical Success Factor: The phased approach allowed the retailer to validate quality and compatibility before committing significant capital, whilst building confidence and expertise at each stage of the transition.