Patented and operations
Won a convertible note from Tallwave Capital via the High Tide 3 Incubator program (one of two winners)
Pre-launch endorsements from manufacturers including Never Summer, Arbor, and Nidecker
Pre-launch user commitments from 44 storefronts in 17 states in multiple outdoor recreation segments including surf, skate, bike, golf, snow, fishing and paddlesports
Zero debt – Raised over $120,000 to date
Solution54 doesn’t house inventory – low overhead model
Over $12 million in gross revenue by year 4
Revenue from transaction fees in outdoor sports only, not other industries or revenue streams
Who are we?
Solution54’s patented SaaS (Software as a Service) platform connects separately owned retailers in a closed network to increase their access to inventory for their in-store customers and move excess product out the door through the closed network.
To bring strength and value back to the brick-and-mortar retailer.
Retailers either have too much inventory and thus too many outstanding invoices, or too little inventory to satisfy customers and pay fixed costs. However, selling excess inventory online violates sensitive vendor/dealer agreements, devalues products and diminishes profits through the entire supply chain.
Brief description of what we do:
We know that what is categorized as an overstock item at one store is an out-of-stock item at another. The Solution54 closed network pltform turns an overstock item into an in-stock item simply by enabling shops to share information on products and customers. By partnering vendors and retailers in a closed network we facilitate sales transactions only within the walls of authorized dealer stores. This allows retailers to discount and move products outside of their territory without violating their vendor dealer agreement and without de-valuing the products.
How Solution54 works:
• Step 1: Point-of-Sale Store doesn’t have the item an in-store customer wants.
• Step 2: They access the Solution54 retailer-only network in real time with the customer to find the product, which is an overstock item listed by another retailer (Shipping Store).
• Step 3: Solution54 makes a store-to-store connection between the Point-of-Sale Store and the Shipping Store. We facilitate delivery and disperse the proceeds between both stores, making a percentage of transaction ourselves.
Note: As a Solution54 Retailer you can buy and sell product in the network with the same account.
Our inventory-sharing network is free to join and generates revenue on a transaction basis. Each transaction splits the available product margin between the two stores after Solution54 takes a 1-% commission. Additional revenue streams we will pursue going forward include data mining, advertising, financing and upgrades in services/features.
Our initial market penetration point is the action/outdoor sports industry, including snow, bike and water sports, which generates over $120 billion in product sales in the U.S. alone. Out-of-stock scenarios occur 1 in every 8 transactions, resulting in as much as $9 billion in transactions that retailers can’t complete.
There is no direct competitor for the Solution54’s retailer-only network. BackCountry.com and eBay represent grey market internet sales, while Shopatron connects vendors and retailers. Solution54 is the only network that connects separately owned retailers to share inventory in real-time.
Solution54’s retailer-only network is available to all member retailers through a Software-as-a-Service portal that can be accessed in real time from their POS terminal. Our Drupal-based platform has been completed with input from brick-and-mortar retail experts for seamless integration. The platform lets retailers complete B2B transactions with a few simple clicks.
The Solution54 Management Team & Advisors:
Extensive experience in: ownership and management of retail shops, sales and marketing (retailer & vendor), IT, customer service, project management, strategic and operational planning, and the highest level legal, accounting, and financial analysis.
Go To Market:
Solution54 currently has over 40 storefronts and 12 major brands signed up. The objective of our efforts will be to enroll qualified vendors and retailers in action/outdoor sports (our launch market) through a “top down” strategy. We will capitalize on decades of experience and relationships in these industries to establish partnerships with major vendors, key retailers and industry groups, thus utilizing some of the most powerful voices in the industry to help us grow and sustain our customer. Upon success in action/outdoor sports its ultimately our goal to enter multiple retail markets on a global scale.