Company insight: How to increase your adhesive profit from £24 to £108 per average order.

Article author: Sam Avery Article published at: Nov 8, 2024
Company insight: How to increase your adhesive profit from £24 to £108 per average order.

Synthetic Grass Paris is an artificial grass reseller competing online for customers looking to install artificial grass in their homes or commercial spaces. Their goal is to retain their status as the largest artificial grass reseller in the France. 

SGP were selling lots artificial grass, however they were struggling to make any profit on their adhesives and accessories sales due to customers finding their current product (Envirostik Aquabondl) at builders merchants or other online artificial grass companies at extremely low prices.

As a result, some of their customers were purchasing their grass, but ordering their adhesives elsewhere. The ones that were purchasing adhesives weren't making SGP much money, so it wasn't ever an area they paid much attention too.

 

 

The only way they could grow was to increase their artificial grass sales, or to keep lowering the cost of their Aquabond product to compete with other resellers. Or so they thought...

 

SGP reached out to Turfgrip™ through a referral from a customer here in the UK after hearing how they had solved the same issue. The solution was developing a private label branded adhesive.

 Developing a SGP private label adhesive allows SGP to significantly raise the price of their adhesive to consumers, in line with where it should be. Customers can no longer 'shop around' for a common adhesive offered out at extra low prices by other resellers.

Instead, thanks to switching their Aquabond product for a specific product for their specific range of artificial grass and joining tape, their customers feel empowered to purchase their SGP as a guaranteed system, and as a specially formulated product specifically for bonding SGP synthetic turf.

The results speak for themselves.

  • Adhesive sales have almost quadrupled.
  • SGP raised their selling price from around £5 per tube to £12 - that's £7 extra profit with every sale.
  • Average profit on adhesive per order has risen from £24 to £108 - that's £84 extra per order, just for having a private label product.

 

Want to learn more about setting up a private label adhesive brand for your company?

Check out our guide here about how a private label brand could impact your artificial grass business.

Alternatively, share your business details with us, and let's work together to create a private label adhesive that enhances your current range.

 

Why not consider an example from one of our UK artificial grass partners, you might ask? It's crucial for us to respect their privacy and not reveal our customers' details to potential clients. However, the example from our Paris-based reseller partner offers a clear comparison.

Article author: Sam Avery Article published at: Nov 8, 2024