Case Study – Construction
Supplying a product to the construction industry can
be a tough ask, particularly when you’re selling
a niche product to the high rise building companies.
The irony is that suppliers can also become clients
in this game and the bigger players expect to sell their
raw steel on a ‘Cash on Delivery’ (COD) basis,
while expecting up to 60 day terms on the finished turnaround
product!
That’s where Adjusta Pty Ltd, based in Sydney’s
western suburb of Rozelle, found itself after developing
a patented product called JointLOCK – a steel locking
device they manufacture and sell.
Executive Director and shareholder, Peter Dowling, described
the product as something far less expensive and much
easier to use than anything else being used in this industry.
“Basically we’ve cornered about 90% of the
Brisbane / Gold Coast market and we’re now expanding
into Sydney, Melbourne and the ACT,” said Mr Dowling.
The JointLOCK is a unique mechanical reinforcing bar
connector designed for use in high-rise construction,
specifically for floor to wall and wall to wall connections – whenever
a strong joint is needed between concrete elements.
Adjusta has a three person travelling sales team, which
will probably peak at around five people – the
correct sized team for a market that is as easily identifiable
as the landscape of high rise and large concrete construction.
The company is steeling itself for a three-fold increase
in annual turnover from $1 million in the 2004-05 year
to $3 million in 2005-06.
“The Benchmark facility releases $200,000 to $300,000
and gives us cash flow we wouldn’t normally have,” said
Mr Dowling.
“We absorb the cost of the facility as part of our
overheads – it’s as simple as that.”
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