David1967,
I started WOW in 1991 with one table at a local flea market.
I started my wholesale operation in 1994 so I will start there.
In 1994 I did $548,000
In 1995 I did $1.2 Million
In 1996 I did $1.8 Million
In 1997 I did $2.4 Million
In 1998 I did $1.8 Million
My personal income in the last 4 years actually decreased each year as we took on new products and more overhead. This past year I decided the pattern was not going to change and I had no bank financing to build WOW beyond what it was. I bulit my business with no bank loans and basically just fed everything back into the business.
Also I could not compete with other distribtuors who discounted. So I decided to back out of distribtuion and formed an aliance with JRS distributors. That allowed me to transfer my customers over to them. That deal will be over on January 1st and we will in no way be a distributor for knife products after that date.
This allows me much leeway in what I can do. I know plan to expand my Internet Business which has the greatest potential for growth, not to mention I will be able to control my own destiny and not be subject to 30 manufacturers policies.
In December of 1997 a large manufacturer changed their distribution policies which effected a large portion of my business. I had done about $300,000 in their product alone. After losing that product line I also noticed that many of the customers I had left us to buy from suppliers who still carried that line. This actually amounted to over $500,000 in lost sales and that is a hard pill to swallow.
I realized then that I can not allow any other business to have that much control over me and I started to look for another way.
I have been building web sites for several years. I brought Spark on board last December to help me in this area as he has more expertise than I do. I shut down World Of Weapons on September 27th of this year. WOW is now WOW-Distribution and WOW Internet Solutions. This complete new direction will hopefully take us down a much more profitable path. Plus it allows me to contol all aspects of my business.
I did sell to many Interent businesses but not all. The reason is I could not stock merchandise in the quantities needed. Also some manuafcturers stop selling to me because they thought I was the distributor mainly responsible for supplying net dealers. No matter what I told them they would not beleive it.
So for the record I have never sold to Discount Knives, KnifeCenter, Confederate Cutlery and others. I am also not the sole source for knives nor can I control dealers pricing. I have been called by several manufacturers asking me to not sell to specific dealers. When I tell them that I am not the problem here they would not beleive. So other distributors would get product and not me.
Oh well, I am sick of the game. The funny thing is I have been out of X brand knives for several months and yet those dealers are still on the net and have the same prices. So I guess I was not the source huh?
Anyway I am giving more info than necessary but the short of it is that I see more potential in my Internet business than I do being a knife distributor.
Need a web site?
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Best Regards,
Mike Turber
BladeForums Site Owner and Administrator
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