Product innovation, availability, and price point.
This is another benefit of the merger I now better understand and appreciate after the meet and greet.
By combining creative forces, technology, distribution power, and other assets, Sherrill and TS will be developing their own products line specifically for tree care.
This will help them set their own prices, mandatory prices a retail hurdle, directly deal with distribution issues, cut out the middle man, and take more interesting risks.
After sitting down with Nick Bonner and the Sherrill design team, I have a lot of new respect and excitement about the design process, time, effort, and $$$ at stake in a product.
The economics behind a product is kinda frightening- they put a lot of cash on the line for patents, engineering, design, testing, and ordering all in the hope that our small community will love it, use it, and buy it.
Just running the numbers in my head, they probably produce and sell the product at a loss for 2-3 years.
I met Kevin B. of Singing Tree and Casey from New Tribe - two product mavericks and great guys for other company's - but these guys aren't rolling in dough. Kevin B. still does tree care daily (probably because he lives to and also has to because the tree work is more profitable).
Profit margins on these tree care widgets is pretty thin and just because we know 4 guys who use it and see it on social media, doesn't correlate to millions buying it.
In the end, my guess is we are going to see a variety of products coming from the Sherrill & TS brands called "Notch" & "Rope Logic". These products will range from entry to Cadillac price point. I also believe they will eagerly be asking for our honest feedback and engaging us because the feedback will be imperative to launch a quality product that is profitable.
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