CASE STUDY

How One Trampoline Retailer Went From $25K to $347K Annual Profit in 18 Months

A detailed look at how direct manufacturing partnerships, flexible inventory strategy, and quality control transformed a struggling retailer into a profitable brand—without increasing sales volume.

In 2016, a mid-sized US trampoline parts retailer was stuck. $500K in annual revenue, but only $25K in profit. Razor-thin 22% margins. Ten unreliable distributors. $50K-80K trapped in slow-moving inventory. Sound familiar? This is the complete story of their transformation—the exact 3-phase process, month-by-month results, and the specific strategies that tripled their profit margins while giving them complete control of their business.

The Turning Point: A Strategic Partnership

The Question That Changed Everything

"What if we could buy directly from a manufacturer who actually understands the trampoline business?"

That question led them to Rich Haby, founder of Source A Product and former owner of O2 Trampolines — a company he built and sold after 15+ years in the industry

Rich wasn't a middleman. He wasn't an importer who just moved boxes. He was the guy who'd lived every one of their problems — and solved them

Industry Knowledge

Rich understood exact quality specifications, material requirements, and the operational realities of running a tram

Quality Control

For the first time, the retailer could define their own quality standards, bring custom designs, and communicate d

Flexible Approach

The partnership offered unprecedented flexibility: 100+ SKUs per container, small quantities per item, and the ab

Shared Vision

The partnership was built on mutual understanding and long-term thinking. Both parties invested in building a su

Before & After: The Numbers Tell the Story

The financial transformation was nothing short of remarkable. Within two years of partnership, every key metric

had improved dramatically, proving that the strategic shift from reseller to manufacturer partnership could deliver

exceptional results.

The Transformation: Key Metrics

Business Model Evolution

Stage 1
Dropship Dependent
Zero control, reactive
Stage 2
Own Inventory
Strategic control
Stage 3
Manufacturing Partnership<
Complete autonomy

How the Partnership Works: Key Advantages

The transformation didn't happen overnight. A carefully structured three-phase approach ensured quality validation, risk mitigation, and systematic transition whilst maintaining business continuity throughout the process.

THE TRANSFORMATION IN NUMBERS

280%

Margin Increase From 22% to 68% gross margins

$322K

Annual Profit Added Sustainable, repeatable growth

$322K

Product SKUs Expanded from just 50 items

9 Years

Partnership Length Still working together since 2016

The Breaking Point: Stuck at 22% Margins

Where They Were in 2016

The retailer was generating $500,000 in annual revenue but barely clearing $25,000 in profit after expenses. Every month felt the same: work harder, earn less. Their problems weren't unique—they're the same challenges most trampoline parts retailers face:

Problem 1: Razor-Thin Margins

Gross margins languished at 20-25%, leaving minimal room for operational expenses or growth investment. They were completely dependent on dropshipping arrangements that offered zero negotiating power.

Problem 2: Distributor Chaos

Managing relationships with 10+ distributors created administrative nightmares. Inconsistent quality, unreliable service, and constant stock-outs meant the business had no control over its own destiny.

Problem 3: Capital Trapped

Between $50,000-80,000 sat tied up in slow-moving inventory from forced case-lot purchases—buying 500-unit minimums when they only needed 50. Distributors required full cases or nothing, which meant over-ordering slow movers just to get access to fast movers. Cash flow suffered as capital sat frozen on shelves, while opportunities to invest in better-selling items passed by.

Problem 4: No Quality Control

Distributors controlled all product specifications—material grades and design standards. Retailers had zero input. Want higher-quality springs? Thicker safety pads? Custom improvements? Not possible. You sold what they decided to stock, which meant competing with identical commodity products at identical quality levels, with no way to differentiate.

"We were stuck. Our margins were shrinking, our stock was unreliable, and every price change from suppliers wiped out what little profit we had left." — Business Owner, 2016

The Solution: A Strategic 3-Phase Partnership

How We Transformed Their Supply Chain

The transformation didn't happen overnight. We used a carefully structured three-phase approach that validated quality, mitigated risk, and systematically transitioned them from distributor dependency to manufacturing partnership—while maintaining business continuity throughout.

The Transition Process: A Phased Approach

The transformation didn't happen overnight. A carefully structured three-phase approach ensured quality validation, risk mitigation, and systematic transition whilst maintaining business continuity throughout the process.

The Results: Tangible Benefits

The partnership delivered measurable improvements across every dimension of the business: financial performance, operational efficiency, competitive positioning, and customer satisfaction. These weren't marginal gains — they were transformational results.

Conclusion: A Model for Success

This nine-year partnership transformed more than just profit margins. It fundamentally restructured the retailer's business model, shifting the competitive basis from price to value, from dependency to autonomy, and from commodity reselling to trusted brand building.

Phase 1: Quality Validation

They tested 10 of their top-selling SKUs head-to-head against their current suppliers.
Results? Source A Product’s parts outperformed across every metric: quality, compatibility, and durability.

  • Quality Standards Alignment

  • Small Quantity Sampling

  • Risk Assessment

Phase 2: First

Container

Instead of buying 500 units of one SKU, they ordered 100+ SKUs in small quantities 20–50 units each.
That single shift unlocked
flexibility, variety, and faster turns without tying up cash.

  • Container Loading Optimisation

  • Logistics Coordination

  • Customs Clearance Management

Phase 3: Full

Transition

Systematic replacement of distributor inventory, SKU expansion from 50 to 200+ items, universal fit strategy implementation, and marketing materials updates.

  • Customer Communication Stratagy

  • Brand Positioning Enhancement

  • Market Expansion Initiatives

Critical Success Factor: The phased approach allowed the retailer to validate quality and compatibility before committing significant capital, whilst building confidence and expertise at each stage of the transition.