In your own words, what does your company do?
FactoryPure is an online variety retailer with an emphasis on heavy equipment, like generators and pellet stoves, along with appliances including tankless water heaters and mobility scooters.
We were more dropship-centric in our earlier years, but today run a 12,000 sq. ft. warehouse in Texas; we take wholesale load-ins directly from manufacturers and resell goods to individual end users and business customers.
We are authorized dealers of everything we sell and support customers through multiple channels including email, phone, and live chat. We serve the contiguous United States.
📈 Monthly revenue: $3M
📈 ~% Churn: N/A
📈 ~% Net profit: 7%
📈 Funding: N/A
📈 Initial cost/investment to start the company: $1,500
📈 Number of team members: 15
📈 Number of founders: 2
📈 Started 2013, February
How does the company make money?
💰 We sell a wide range of products including categories such as power equipment, electronics, and home & outdoor.
💰 Price points range from $200 up to $30k+.
3 strategies that have worked to attract and retain customers?
✅ Email: We set triggers based on internal metrics that would predict a customer being a good candidate to be a recurring buyer. They are then automatically separated into an email using a combination of Airtable and Parabola apps to create flows.
✅ Google ads: Slowly rolling out and refining ads can bring in many customers. Negative keywords and other strategies are necessary to avoid exorbitant spending in unprofitable areas.
✅ Employee Incentives: A couple of years ago we created a pool of funds directly correlating with overall sales. The percentage that each sales rep brings in relation to overall employee sales is the percentage of the pool they take home. This had tremendously impacted motivation and follow-ups from reps.
3 things that you’ve learned about hiring and retaining great talent?
✅ We’ve oscillated between optimizing for skills versus attitude/character fit in evaluating candidates. The former creates more productivity in the short term but the latter is definitely better for retention, and we lean toward the latter (maybe 70/30 in favor of attitude and character fit over skills, but the ratio varies based on role)
✅ We typically give raises more frequently, and on a more ad hoc schedule, than most companies. That is, we don’t wait for an annual review or predetermined calendar periods to recognize and reward performance
✅ Giving people some kind of variable compensation component (tied to company performance) has been important for aligning incentives and improving morale. This could be through a profit share or variable bonus pool (doesn’t have to be via equity, which is more complicated)