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iBattery changing name, will begin offering line of packaging materials [Enterprise, The (UT)](Enterprise, The (UT) Via Acquire Media NewsEdge) iBattery, an Orem-based online reseller of electronic accessories, is in the process of changing its name to Vetora LLC while expanding its sales operations by featuring its own line of packaging materials called EcoSwift. Co-owners Rich Jackson, CEO, and Brigham Budd, president, believe they can increase current sales revenues by two to three times over the next two years, while improving profit margins, just by selling EcoSwift products in addition to offering services designed to aid other local small businesses with their shipping needs. "This has been on our project list for a couple of years and in March it was time to launch our EcoSwift packaging materials," Jackson said last week."Not only will we save money on our own shipping costs, we'll help other small businesses save money. We'll be up and running this week." "We sell such a high volume of products and ship out so many packages every day (between 1,300 and 1,400 on average) that packaging materials are a big factor for us," said Budd. "Having our own line of packaging products - bubble mailers, poly mailer envelopes, poly bubbles, boxes and tape - will have a significant impact on our overall sales growth." Vetora saw gross revenues increase from $300,000 during the last half of 2009 to nearly $2 million in 2010. Jackson and Budd anticipate a record year in 2011, between $3 million and $5 million. The company currently has one other full-time employee (warehouse manager) and nine part-timers that work 20 to 25 hours a week. The firm operates out of two warehouses just west of I-15 off exit 271 at 15 N. 1330 W. in Orem. The main office/ warehouse is 4,200 square feet; the other, a block away, is 4,000 square feet and will house an initial shipment of five large containers (8 feet wide, 10 feet high, 40 feet deep) of packaging products. The company currently has a product line of just over 500 SKUs, including accessories for cell phones, digital cameras, iPods/MP3 players and iPads/tablets. It recently started selling HDMI cables ranging from three 50-feet long. All products, are 70 percent to 90 percent off typical retail prices. "We're geared to selling items that people use every day," Jackson said. "Every single household has at least one or two things we sell accessories for. Items for cell phones range from $1.99 (screen protector) to $9.99 (battery). A 50-foot HDMI cable typically retails for $100; Vetora offers a comparable item for $25. All items are manufactured in China. All products are sold via online retailers such as eBay and Amazon, which provides Vetora with tremendous market reach nationally and in overseas countries where English is the primary language. Nearly 70 percent of its domestic sales are east of the Mississippi River; California and Texas account for 70 percent of sales west of the Mississippi. Eighty percent come from Canada, with U.K. and Australia consumers accounting for roughly 7 percent each. Vetora is looking to expand to a larger Utah County warehouse in the next two months - up to 15,000 square feet - and has immediate plans to open an eastern U.S. warehouse for its EcoSwift line, possibly in Norfolk, Va., or Chicago. "We'll see how the initial launch is on packaging supplies, it depends on volume," Jackson said. "With the transition from retail to online sales, companies that are shipping more items have to buy packaging materials. We'll be able to sell our packaging for 50 to 60 percent off retail pricing. We plan on being a big player in this industry." "One of the keys that allows us to bring in new products and launch new ideas is that we're completely debt-free," said Budd. "It allows us to take a certain amount of our revenues and focus on new products. If you're not growing, you're dying. We feel like we're just getting started. We have some lofty goals and are confident we can achieve those." Vetora was formed in June 2009 as iBattery, when Jackson and Budd merged their respective businesses and became equal partners. Jackson initially sold cell phones and service contracts in 1997 as an outdoor sales representative for Wireless Etc., a brick-and-mortar retailer with five stores in the Salt Lake Valley. He said he made "a lot of money" during that time, but became disenchanted with the retail atmosphere. Jackson started Digital Etc. Inc., selling cell phone accessories online via eBay, in 1999. Budd claims Jackson was the "first person to sell cell phone accessories on eBay." Budd was hired in 2004 to work with Jackson, broke off in 2006 to start his own company, and eventually the pair reunited with the belief that two heads were better than one. "It's less stressful with two people," said Jackson. "Profit margins are a little less, but we're doing massive amounts of volume - up to 2,500 to 3,000 items per day. This year will be our highest revenue ever." Jackson and Budd said the economic recession has actually helped their business, as more and more consumers are chasing the best deal they can get. "Consumers are forced to stretch their dollars," said Jackson. "We offer products 80 to 90 percent off retail prices, so it's a good deal for our customers." "The recession has probably helped our business," added Budd. "We're passionate about finding the best deal out there and spend a lot of hours researching our products. Every penny counts. We pass that savings on to our customers and are still able to meet our profit goals." (c) 2011 Enterprise Business Newspaper Inc. |