Comfortable Concentration for a $800k SDE Business

And, you know, if you start optimizing in different areas, you know, you could really lower the, the amount of inventory.

That you have, which is all cash that just becomes, drops to your bottom line. Then. Yeah, it's freeing up working capital, essentially.

Okay, perfect segue. So, so how does one just broadly grow a distribution business, inventory management aside, which is is sort of more optimized, a distribution business? You've said that basically having more people buy from you is, is one way to do it.

So that pulls inventory through. Is that, is that more inventory through. Is that basically the, the answer?

Just go out there and sell more like, like every other business?

Yeah, I think you've got two, you've got two factors. You've got velocity and you've got distribution points. So, like, how many body shops are you selling to?

Can you increase that number and how much product is flowing through the body shop? You know, how much velocity are you. Do you have at each shop?

You know, can you increase the amount of clear coat that they're buying from us? If they're buying clear coat now, are they interested in sandpaper? You know, I think it's easier to grow, obviously, with your existing customer base.

So if we can upsell our existing body shop customers, that would be the easiest way to grow. I think the second way is, you know, adding more distribution points, and the third is probably adding additional products so, you know, growing our portfolio, like, laterally.

Now, in a situation where you have the, the. Your seven guys, your jobbers, and you've already, you already kind of mentioned that, nudging them, incentivizing them to find new body shops to work with to grow that endpoint, that doesn't give you a lot of control. Is there a way that you can pull through demand and not rely on them to. To generate new customers?

Right now, probably my ability to do that is. Is pretty limited because most of the territory that I have been granted from MEPA is. Has been given to these distributor jobber customers.