DW8 Growth, page-9592

$40M profit is achievable for less than 5% market share. The $5.3B wholesale market is 2018 figure at 5% YOY = $6.1B in 2021 but will be down this year due to lockdowns.

The market will most likely have 20% of companies responsible for 80% of the volume & vice versa. The DW8 game plan is to initially conglomerate the 80% of smaller companies into 20% by volume to compete with the big players. A disruptor starts at the low end low value part of the market, ie. logistics & smaller companies. As the market share of the conglomerated smaller companies grows so will the disruption to the larger companies & they will eventually take action or lose market share.

The $200M stock in Parton's warehouses is owned by importers, distributors & retailers. They would have their current distribution/sales channels to their existing customer base. Listing their products on B2B Market will give them access to new customers, however, there may also be some overlap with their existing customers. They currently sell direct to their existing customer base & will not want to pay 12% B2B Market fees as it will reduce their margin as they cannot justify a 12% price increase to cover the additional cost. They will most likely have to increase prices by 12% for listings on B2B Market when selling to new customers in order to retain their margin. Will require a setup where they are charged a SAAS platform fee only & nil trading fees to existing customers with product at same pricing while also allowing products to be listed at 12% higher for new customers with trading fees.

Assume Importer XYZ currently has 100 trade buyers & is selling direct on 30/60 day terms. B2B Market will allow access to a a pool of additional trade buyers & they can be paid within a few days too. It's a bit of a no brainer as long there as there isn't too much customer overlap but they can have a system in place to deal with that. At least a portion of the $200M stock will most likely be listed on B2B Market.

Turning the $200M stock over just once in a year wholesale x 12% fees = $24M. It's about 1M cases x $19 logistics = $19M x 20% gross margin is about $3.8M. Ideally, turn it over minimum 2 times per year & up to 3-4 times every year.

Markets in UK & USA are significantly larger than Australia/NZ. They should be aiming for $100M revenue from Australia/NZ only plus a few hundred million later from UK & USA.

The architect has arranged all the materials & is meticulously putting them together in a methodical manner adhering to the plans. It's going to be a big grand company.

In the meantime, check out recent IPO Zoom2U (ASX:Z2U) delivery platform connecting couriers & customers. $2.8M FY21 & $2.3M FY20 = 21.7% growth & losing about $1M per year. Skimming about 21% & has $50M MC after being listed at $23.25M the other day. Slow growth compared to the DW8 express. 21.7% growth is x6 revenue multiple at best x $2.8M = $16.8M + $8M IPO cash = $24.8M about the same as IPO listing price.