CASE STUDY

How One Trampoline Retailer Went From $25K to $347K Annual Profit in 18 Months

A detailed look at how direct manufacturing partnerships, flexible inventory strategy, and quality control transformed a struggling retailer into a profitable brand—without increasing sales volume.

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.

How One Trampoline Retailer Went From $25K to $347K Annual Profit in 18 Months

A Real-World Transformation From 'At the Mercy of Suppliers' to 'Owning the Game

A detailed look at how direct manufacturing partnerships, flexible inventory strategy, and quality control transformed a struggling retailer into a profitable brand—without increasing sales volume.

280%
Margin Increase
From 22% to 68% gross margins
$322K
Additional Profit
Annual profit gained through partnership
9
Years Strong
Ongoing partnership since 2016
200+
Product SKUs
Expanded from just 50 products

Let's start with the truth most retailers don't like to admit

You can't build a thriving business when you don't control your margins, your stock, or your supply chain.

And yet, that's exactly where most trampoline parts retailers live — day after day:

  • 15-25% margins
  • Unpredictable suppliers
  • Inventory nightmares
  • Endless "out of stock" messages<

Turning Point

In 2016, a mid-sized US trampoline parts retailer reached their breaking point.

They were selling solid volume — about $500,000 a year — but barely clearing $25,000 in profit after expenses.

Every month felt the same: work harder, earn less. Dropshipping barely controlled their pricing, dictated which

products they could sell, and left them holding the bag when inventory ran dry.

"We were stuck. Our margins were shrinking, our stock was unreliable, and every price change from suppliers wiped — Business Owner, 2016

The Four Problems Trapping Them

They Stopped Playing Defence

No more supplier-controlled pricing or case-quantity traps. They chose what to order, when, and how much.

Problem 2: Distributor Chaos

Managing relationships with 10+ distributors created administrative nightmares. Inconsistent quality, unreliable s

Problem 3: Capital Trapped

Between $50,000-80,000+ sat tied up in slow-moving inventory, forced purchases in case quantities that didn't m

Problem 4: Limited Flexibility

Adding new products required 90-120 days of lead time. Market trends shifted while the retailer waited for distri

The Turning Point: A Strategic Partnership

The Question That Changed Everything

"What if we could buy directly from a manufacturer who actually understands the trampoline business?"

That question led them to Rich Haby, founder of Source A Product and former owner of O2 Trampolines — a company he built and sold after 15+ years in the industry

Rich wasn't a middleman. He wasn't an importer who just moved boxes. He was the guy who'd lived every one of their problems — and solved them

Industry Knowledge

Rich understood exact quality specifications, material requirements, and the operational realities of running a tram

Quality Control

For the first time, the retailer could define their own quality standards, bring custom designs, and communicate d

Flexible Approach

The partnership offered unprecedented flexibility: 100+ SKUs per container, small quantities per item, and the ab

Shared Vision

The partnership was built on mutual understanding and long-term thinking. Both parties invested in building a su

The Turning Point: A Strategic Partnership

The Question That Changed Everything

"What if we could buy directly from a manufacturer who actually understands the trampoline business?"

That question led them to Rich Haby, founder of Source A Product and former owner of O2 Trampolines — a company he built and sold after 15+ years in the industry

Rich wasn't a middleman. He wasn't an importer who just moved boxes. He was the guy who'd lived every one of their problems — and solved them

Industry Knowledge

Rich understood exact quality specifications, material requirements, and the operational realities of running a tram

Quality Control

For the first time, the retailer could define their own quality standards, bring custom designs, and communicate d

Flexible Approach

The partnership offered unprecedented flexibility: 100+ SKUs per container, small quantities per item, and the ab

Shared Vision

The partnership was built on mutual understanding and long-term thinking. Both parties invested in building a su

Before & After: The Numbers Tell the Story

The financial transformation was nothing short of remarkable. Within two years of partnership, every key metric

had improved dramatically, proving that the strategic shift from reseller to manufacturer partnership could deliver

exceptional results.

Before & After: The Numbers Tell the Story

The financial transformation was nothing short of remarkable. Within two years of partnership, every key metric

had improved dramatically, proving that the strategic shift from reseller to manufacturer partnership could deliver exceptional results.

Before Partnership (2014-2015)

  • Annual Revenue: $400,000
  • Gross Margin: 22%
  • Gross Profit: $110,000
  • Net Profit: $25,000

After Partnership (2017)

  • Annual Revenue: $850,000 (+113%)
  • Gross Margin: 68% (+209%)
  • Gross Profit: $442,000 (+302%)
  • Net Profit: $347,000 (+1288%)

The Transformation: Key Metrics

The Transformation: Key Metrics

68%
Gross Margin Achievement
Up from 22%, representing a 210% increase
1288%
Net Profit Growth
From $25,000 to $347,000 annually
300%
Product Expansion
From 50 SKUs to over 200 products

Business Model Evolution

Stage 1
Dropship Dependent
Zero control, reactive
Stage 2
Own Inventory
Strategic control
Stage 3
Manufacturing Partnership<
Complete autonomy

Business Model Evolution

Stage 1
Dropship Dependent
Zero control, reactive
Stage 2
Own Inventory
Strategic control
Stage 3
Manufacturing Partnership<
Complete autonomy

How the Partnership Works: Key Advantages

The transformation didn't happen overnight. A carefully structured three-phase approach ensured quality validation, risk mitigation, and systematic transition whilst maintaining business continuity throughout the process.

How the Partnership Works: Key Advantages

The transformation didn't happen overnight. A carefully structured three-phase approach ensured quality validation, risk mitigation, and systematic transition whilst maintaining business continuity throughout the process.

THE TRANSFORMATION IN NUMBERS

280%

Margin Increase From 22% to 68% gross margins

$322K

Annual Profit Added Sustainable, repeatable growth

$322K

Product SKUs Expanded from just 50 items

9 Years

Partnership Length Still working together since 2016

THE TRANSFORMATION IN NUMBERS

280%

Margin Increase From 22% to 68% gross margins

$322K

Annual Profit Added Sustainable, repeatable growth

$322K

Product SKUs Expanded from just 50 items

9 Years

Partnership Length Still working together since 2016

The Breaking Point: Stuck at 22% Margins

Where They Were in 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.

"We were stuck. Our margins were shrinking, our stock was unreliable, and every price change from suppliers wiped out what little profit we had left." — Business Owner, 2016

The Solution: A Strategic 3-Phase Partnership

How We Transformed Their Supply Chain

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.

Industry Expertise

Founded by Rich Haby, former O2 Trampolines owner with 15+ years in trampoline manufacturing, bringing gen

Flexible Product Mix

Access 100+ different SKUs per container with small quantities of 20-50 units each, versus forced case lots of 10

Universal Fit Engineering

Generic parts designed to fit all major trampoline brands, eliminating brand-specific inventory multiplication and

Quality Control

Define exact material grades and manufacturing tolerances. Bring your own designs and specifications for custom

Rapid SKU Additions

Add new products in 30-45 days instead of 90-120 days, testing new items with just 20-30 unit minimums.

Emergency Response

Air freight available for critical parts delivered within 5-7 days, with direct factory problem resolution.

The Transition Process: A Phased Approach

The transformation didn't happen overnight. A carefully structured three-phase approach ensured quality validation, risk mitigation, and systematic transition whilst maintaining business continuity throughout the process.

The Transition Process: A Phased Approach

The transformation didn't happen overnight. A carefully structured three-phase approach ensured quality validation, risk mitigation, and systematic transition whilst maintaining business continuity throughout the process.

1

Phase 1: Quality Validation

They handed us their top-selling SKUs head-to-head against their current suppliers. Source A Product's part

  • Factory vetting
  • Quality standards alignment
  • Small quantity sampling
  • Risk assessment and validation
2

Phase 2: First Container

Instead of buying 500 units of one SKU, they ordered 100+ SKUs in small quantities

  • Container loading optimization
  • Logistics coordination
  • Customs clearance management
3

Phase 3: Full Transition

Systematic replacement of distributor inventory. SKU expansion from 50 to 200+ items. Process refinement

  • Customer communication strategy
  • 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.

The biggest difference wasn't just price.
It was control.

Here's what changed at the root level:

They Stopped Playing Defence

No more supplier-controlled pricing or case-quantity traps. They chose what to order, when, and how much.

They Reclaimed Their Cash Flow

By mixing over 100 SKUs per container, they freed $65K+ in dead stock and could reinvest in

They Simplified Everything

One supplier. One point of contact. Zero lost emails, zero language barriers.

They Turned Quality Into Differentiation

Direct manufacturing meant defining their own standards, not accepting "whatever's available."

The Results: Tangible Benefits

The partnership delivered measurable improvements across every dimension of the business: financial performance, operational efficiency, competitive positioning, and customer satisfaction. These weren't marginal gains — they were transformational results.

The Results: Tangible Benefits

The partnership delivered measurable improvements across every dimension of the business: financial performance, operational efficiency, competitive positioning, and customer satisfaction. These weren't marginal gains — they were transformational results.

Conclusion: A Model for Success

This nine-year partnership transformed more than just profit margins. It fundamentally restructured the retailer's business model, shifting the competitive basis from price to value, from dependency to autonomy, and from commodity reselling to trusted brand building.

Conclusion: A Model for Success

This nine-year partnership transformed more than just profit margins. It fundamentally restructured the retailer's business model, shifting the competitive basis from price to value, from dependency to autonomy, and from commodity reselling to trusted brand building.

Could This Work for Your Business?

This partnership model works best for trampoline parts retailers generating $200,000+ in annual parts revenue, are frustrated with 15-25% margins and want to compete on value rather than just price. If you're open to container-load ordering and value long-term partnerships, this model could transform your business.

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.

From Trampoline Owner to Manufacturing Partner

WHAT WE OFFER

The 3 Advantages Distributors Can't Match

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 Optimization

  • 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.