|"State of the Warehouse" Jan 01, 2018
2017 State of the “Warehouse”
This year, we at Fbodywarehouse want to update you, our clients and suppliers with a snapshot of how our company fared in 2017. Although such disclosure is not a common practice within the industry and among privately owned companies, we firmly believe that you have an interest in how the company that serves you manages its business.
2017 was our 17th year of serving you, the F-body vehicle owner, this past year has been a very good one.
We have accomplished and been challenged by much across the full spectrum of our operations, and it has been a terrific adventure.
In 2017, Fbodywarehouse continued to release free how-to videos showing our clients how to install the products we offer. In 2017 our video collection on You Tube broke the 2 million mark ending the year at over 2.1 million videos watched. This is an increase of 25% over the previous year. In 2018 we plan to continue to bring you videos to help you install the various products we offer.
In 2017, we continued to show growth in our parts restoration services area. This includes re-dye of parts for clients, seat recovering, panel specific trimming, and tail light restoration. Additional services added in 2017 were the install of lettering on factory switches and controls. We continue to be the only medium to large company within the industry that performs these tasks for its clients.
2017 brought the release of many new products to the market place. We have added many new products and plan to continue to expand inventory into 2018.
Prices of cars continue to rise in both the general market place and at auction which continues to drive the parts industry in a positive direction.
After the passing of several family members the hunt began to move Fbodywarehouse back down to Tennessee. In February the stars aligned, and we purchased a small farm back in Dunlap Tennessee. The property is dual zoned which allows us to bring the entire operation into one location. The move occurred in July on 2017 and has allowed us to greatly expand our scope or operations. Moving both a family, home and business, is quite the task which we achieved with the help of many folks for a smooth transition into the new property.
Additional challenges we faced include the updating of the website. New regulations on how a company processes credit card information have come into effect as of January 1, 2018 we are pleased to announce we were far ahead of this curve and achieved compliance in the 2nd quarter of 2017, six months ahead of schedule.
A Return to Our “Roots”
After the move back to Tennessee, the restrictions which bound us in New York State were relieved. We are now able to once again expand our used product inventory and invested heavily into buying used GM parts from other bulk used parts retailers. In addition, Fbodywarehouse has been bringing a steady flow of not only 2nd generation parts cars, but also 3rd and now 4th generation Camaro Firebird and Trans Am models. We have brought on labor to recondition these used GM items and now can offer our clients a massive inventory of both new and used replacement products. This investment which began in September of 2017 has already begun to pay off as clients now can find both the option of a new reproduction part or a restored GM part as well.
Year-over-year gross income levels were in line with expectations with the events of 2017 that Fbodywarehouse experienced.
Our first quarter was down quite a bit in 2017, we attribute this with multiple trips to Tennessee to not only locate, but then close on a property. This caused the business to be closed for several days through the course of the first 3 months.
Our second quarter rebounded even as we faced the challenge of preparing for the move. We would spend time back and forth to Tennessee to prepare the house and shop for the move. The surprise was that although we ran at 1/3 staff for nearly 6 weeks of this quarter sales would rebound and increase nicely year over year.
Quarter three would mark a slow quarter as we began the actual relocation of the home and business on the first day of the third quarter. This would involve tractor trailers which gives you an idea of the scope involved in the move. Setting up and keeping the operation running smoothly during this time would prove to be a challenge and sales did fall slightly as we spent the summer months unpacking and beginning of the remodel of the work spaces. In the final stages of quarter three we also began to bring in used inventory in massive quantities which ate much time making trips across Tennessee buying parts by the trailer load. While we experienced a drop in gross sales this was expected. Historically is the slowest quarter as folks are involved in cruise nights and car shows and typically are driving their cars as opposed to working on them.
Quarter four ending December 31, 2017 brought us a very strong quarter surpassing that of 2017 by the largest margin of the year. The additional used General Motors Parts continued to go live on the website driving sales at a hectic pace. We continued to expand in used inventory bringing in multiple donor cars as well. We now have the largest quantities of used General Motors products than we have had in nearly 10 years.
Overall Year Review.
2017 brought massive changes to our business structure, location, and our lives in general. The move from New York back to Tennessee has bought with many opportunities and business advantages which we know will be only the beginning of a great 2018. Our final gross income dropped by just below 2% year to year. We in house feel this was above expectations with the challenges we faced this past year.
Looking forward to 2018
Simply put the sky is the limit in 2018. With the acquisition of 5 collectable autos in 2017 we plan to liquidate these assests acquired in 2017 in the second quarter to raise capital to bulldoze and replace our current shop with a much larger building that will be able to not only handle inventory but also house restoration bays for future restorations.
The tax and business friendly structure that Tennessee brings will also allow us to experience growth in 2018. We here at Fbodywarehouse feel that 2017 was the launching pad for 2018. With a very strong foundation now in place we can face challenges within the industry, and look to grow through the upcoming year.
YOU & Fbodywarehouse
We release this “State of the Warehouse” summery for you. It is important that you see we continue to work for you the client. For just under two decades we have worked for the F body community and will continue to do so as we strive to bring you both excellence in service but also in products.
As always when you call in your order you will as always speak with Pete or Heather directly and not an under educated sales person which has become the norm at other companies in the industry.
We would be remiss if we did not thank sincerely all of the web-based car clubs and Facebook groups with which we work. They have kindly allowed us to announce new YouTube content, sales, and other F-body-related information. The owners of these groups have been and always will be a key factor for our continued growth and our relationship with you, the client.
So to all our clients of 2017, we sincerely thank you. Without “you,” there is no “us.”
Pete, Heather, & The Fbodywarehouse team.