2016 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 2016. 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.
2016 was our 15th year of serving you, the F-body vehicle
owner, and it has been a great year. Heather and Peter were able to attend SEMA
this year. It was an amazing experience that we highly recommend to any person
within the industry.
We have accomplished and been challenged by much across the full
spectrum of our operations, and it has been a terrific adventure.
In 2016, Fbodywarehouse continued to release free how-to videos
showing our clients how to install the products we offer. We also expanded
videos into the 3rd generation F-body models, providing an entirely
new group of F-body owners with informational videos for model years 1982-1992.
We also removed all YouTube ads from our videos, so our channel viewers will no
longer have to deal with commercials. As of the end of 2016, we have had nearly
1.8 million views of our 175 installation videos.
In 2016, 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 taillight restoration. We continue to be the only medium
to large company within the industry that performs these tasks for its clients.
Web Site Launch
For nearly 10 years, we have used the same web software to present
our company and its products to the world. Times have changed, and evidence of
that was Google’s recent change of its site-ranking policies with respect to
website formatting and presentation on mobile devices. So we took a deep breath
and began the arduous process of creating and launching a new website. This was
a major challenge for us during the 3rd and 4th quarters
of 2016, and while we are close to the goal line, we are still not done with
the final touches. We continue to improve our new website on a daily basis because
we want you to have the best possible shopping experience. Presently, the new website
meets or exceeds PCI-compliance standards with respect to the handling of client
information, and it is now mobile-friendly so that you can use it on your
portable computing devices. Our old website is still fully operational and will
remain so until the new web site’s planned refinements have been completed.
Supply Chain & Parts Producers
Throughout the year we carefully examined the quality of parts
from various suppliers. We asked ourselves, “If company ‘A’ makes the same part
as company ‘B,’ which product has the better quality?” During this study we sometimes
found drastic differences in quality, resulting in our having removed a
previously offered item and having replaced it with a higher quality item from another
supplier. One company, Georgia-based Classic Headquarters, stood out to us as
offering a superior product line over that of other suppliers, so we have given
their products a preferential place in our catalog. We are also pleased to
announce we have reached top-tier pricing agreements with other companies
within the industry, allowing us to give you, our clients, the welcome surprise
of lower prices.
2016 continued to bring consolidation within the parts industry. The
ownership of many brand names in the market have changed hands and are being
presented by much larger companies. This trend, which began in 2015 and which has
extended into 2016, is both a blessing and a curse for the industry in a
variety of ways. On one hand, it has led to a concentration of control of the
industry into fewer hands. On the other, it has enabled us to deal in products to
which we previously did not have any access. In 2017, you will see many of
these product lines added to our parts catalog.
Another notable industry trend is that the value of F-body cars exploded
in 2016. Sales price records for completed/restored cars were shattered at many
auctions, and the value of vehicles in the F-body line continued to grow at an
ever expanding rate. We feel this trend will allow the parts sector to grow in
size and volume.
As most of our clients know, we are a “mom and pop” operation. In
late 2014, we moved the company to New York to be closer to family. This past
year Peter lost both his mother and grandmother, two wonderful women who were
inspirations to both Heather and him over the course of their lives. This was a
dark time for us to work through, and we thank all of our clients who showed
grace and patience last spring as we laid them to rest.
The web site launch also created a massive challenge for us.
Moving more than 3,000 products to another platform is never an easy task, and
we continue to work on this process as we begin 2017.
Year-over-year growth was in line with expectations, and we
continue to experience reduction in shipping times to the client on products as
well as growth of on-hand product inventory. At the conclusion of calendar
2016, Fbodywarehouse realized a year-on-year increase in gross revenues of 17%.
Sales grew in three of the four quarters, and outstanding debt remained very
low and unchanged year over year.
Looking forward to 2017
We will continue in 2017 to deliver the personal shopping
experience to our clients that they have always received from us. When you call
us, you will speak either to Peter or Heather. We believe that enabling our
customers to discuss their needs directly with us, business owners having
nearly 20 years of experience with both these cars and their reproduction parts
found in today’s marketplace, will ensure that correct items are ordered and
delivered. We don’t consign customer calls to a $10-an-hour worker as some
other companies readily do.
We plan to grow Fbodywarehouse’s inventory, and the company will
start branching out into some other classic muscle car models as well. These
changes will become apparent as you explore the website and as we refine it to
make it the most functional and easiest-to-use website available for muscle car
In 2017, we will bring you more “How-To” content on YouTube. This
will let you, our valued customer, save money while working on your car. Restoring
these vehicles does not require a knowledge of rocket science. When we deliver
easy-to-follow instructions in a highly accessible format, you can expect to
save a lot of money as a shade-tree mechanic, who performs easily mastered and
clearly explained tasks at home, instead of paying a shop to do them for you!
Our Community of Supporters
We would be remiss if we did not thank sincerely all of the
following 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.