Good Afternoon Everyone,
I know that I have been overdue for a campaign and company update and would like to take a moment to address where we are as a company.
As I had updated everyone back at the end of 2019, we decided to turn our attention towards a wholesale business model in order to generate revenues immediately while going through the major expense of opening the new retail location. Just as we are beginning the launch of our new wholesale distribution, the Covid-19 epidemic struck. As one might imagine, our wholesale customers are all retailers who have been either shut down completely or their business has been dramatically reduced by the current situation. Most, if not all, of our customers have temporarily suspended any buying, placing us in a similar holding pattern to most of the country and the rest of the world for that matter.
At the launch and beginning of our campaign, we were entirely focused on the opening of a new retail location in the Henderson suburb of Las Vegas, Nevada. While this still is the big picture plan for the growth and expansion of the company, the last year and especially our current circumstances that the entire world is facing through the Covid-19 worldwide epidemic has given us a new perspective on our best next steps. Retail has been hit hard and will definitively see some changes going forward. The truth is that no-one really knows what life is going to be like when we get back to "normal", so there is no real way for us to accurately predict how the marketplace will adapt as it is far too early to know for sure.
The good news, now that we are in the midst of the Covid-19 crisis and retail businesses such as Open Box Buy have been deemed non-essential, is that we have avoided having a brand new retail store being completely shut down. Had we kept pressing forward to urgently open a new space as we had originally planned, I can say without almost certainty that we would not have survived such a huge blow to the company so very early on in our growth. Just one of our retail stores employs about 40 to 50 people full and part time, and has a significant amount of overhead expenses for the lease, utilities, insurance, and other operational costs. We now see this as a huge blessing by we not having these substantial financial burdens. It is specifically for this reason that we are now in a much better position during such an extraordinary time.
As we aren’t currently locked into any specific market or retail obligation, we are completely free to move the company forward in the best way possible given the current market conditions. We are now in the position to follow market demand wherever we see the most opportunity, whether we choose to distribute wholesale; to sell retail online through major marketplaces such as Amazon and eBay; or maybe it ends up being even more advantageous timing for the opening of the new discount retail store as we emerge from the Covid-19 crisis.
In our opinion, the most encouraging aspect of the country’s current financial condition is that our business model actually grows and thrives as a direct result of an economic down turn. As we emerge from this pandemic, we anticipate that the consumer's need to save money in any way possible will be at an all-time high just as it was for discount retail during the Great Recession of 2007 to 2009. According to the publicly available financials from companies such as TJ Maxx, Burlington, dollar stores, and other deep discounters, steady growth can be seen all the way through the country’s most recent economic hardship.
So while it might look great to only post the most cheery and exciting updates, this time I felt it much more important to also share some of the obstacles we face along the way and more importantly how we are overcoming them in order to produce the best possible results. I believe it to be disingenuous if I were not to share the downs as well as the ups along the way. At our core, we believe success is not a byproduct of a straight pathway without any obstacles and challenges, as much as it is how well we pivot and adapt in order to always keep moving forward.
I hope everyone is staying healthy, safe, and doing well.
Open Box Buy