Retail opportunity in Scotland
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discount centre
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discount centre Wood Fuel Retailing Business Opportunity We can quickly and efficiently help you setup to take advantage of the rapidly expanding wood fuel market We can supply you with up to ten different types of wood briquettes, biomass wood pellets, kiln dried logs and lighters. This diversification will increase your winter profitability, and bring a new customer base to your existing product lines Our retail division sells over 1,000 pallets of briquettes, pellets and kiln dried logs to the local market, generating annual revenues of £360,000 with gross profit of £126,000.
We invite you to work with us to create a highly profitable wood fuel retail outlet in Scotland
t: 01387 731210 e: info@woodfuel.scot www.woodfuel.scot
Introduction Our business strategy has produced like-for-like sales growth every month for the last 3 years. It is clear that there is a substantial market throughout Scotland for this proven selection of modern wood fuels. We are in the process of establishing a network of stockists across Scotland who will replicate our successful formula within their own retail premises. We can supply you with a complete sales package which includes: stock in the form of briquettes, pellets, peat, firelighters and kiln dried logs Initial and ongoing staff training and product information a national website with an 0800 customer helpline and your shop location national and local advertising through our website and other avenues ongoing support to ensure you maximise market penetration within your captive market area promotional material in the form of banners, brochures and product information stands on which to display individual product information From our wood fuel marketing experience we know we can bring a significant additional revenue stream to suitably located and motivated businesses.
t: 01387 731210 e: info@woodfuel.scot www.woodfuel.scot
Revenues You will retail our modern high performance wood briquettes from £2.99 per 10kg pack up to £3.99 for the very best high quality premium briquettes. Your margin will be a minimum of £1.00 per pack/bag equating to a mark-up for you of between 40% and 60%. Our price to you includes delivery. Whilst we will require you to retail ‘off your floor’ at or below our nationally advertised price, you may charge whatever you wish for product you sell which includes delivery.
t: 01387 731210 e: info@woodfuel.scot www.woodfuel.scot
Market Growth
The market for modern high performance wood briquettes is growing exponentially, driven by the number of households fitting wood stoves.
The market for wood pellets is developing rapidly due to the Government Renewable Heat Incentive (RHI) which pays households and businesses to fit and run biomass boilers. In Dumfries, serving a population of around 50,000, we have increased our retail turnover from £148,000 to £235,000 to £360,000 over the last three years. Increasing numbers of customers are moving away from traditional logs and fossil fuels to high performance briquettes which are clean, dry, consistent, easy to handle, stack and store, and burn very hot. Large retailers and discount stores are starting to stock briquettes at prices above our own RRP. This is exposing briquettes to a larger market and is driving our sales. Our retail customer base is growing strongly because we offer a comprehensive range of best quality wood fuel at affordable prices.
t: 01387 731210 e: info@woodfuel.scot www.woodfuel.scot
Opportunities l
The current wood fuel market is dominated by local log suppliers working independently of each other with no joint marketing strategy or quality control. The usual complaints customers have about local logs is that they are of variable quality, uncertain volume and weight and are often too damp to burn.
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Over the years we have sourced a range of high performance wood briquettes with differing burning characteristics which suit all requirements from easy start, quick heat and great flame to long daytime and overnight burn.
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These briquettes are easy to handle, stack and store, and give consistent performance at a price competitive with local log suppliers.
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This chart shows our current range of wood fuel products and the relative sales proportions. Our strength is that we are able to offer a variety of products to suit a range of requirements
Peat Nuggets
Turbo Hard
Ultra Bright
Peat Briq
Verdo
RUF Hard
RUF Bark
UK Heat Logs
Hotmax
Pini Kay
Aspen
VerdoPellets
t: 01387 731210 e: info@woodfuel.scot www.woodfuel.scot
Sales volume Assuming you achieve a similar level of turnover to us here in Dumfries, you should expect to sell up to six full lorry loads of 24 x 1 tonne pallets per month from October through to March. Each full or half lorry load we deliver to you will consist of a mix of pallets of whichever items you need to replenish stock.
Checklist Check this list to see if your retail facility might be suitable for becoming a Woodfuel Discount Centre. Location: in town, edge of town or out of town Access: for articulated 40ft lorries Storage: up to 1,000 sq.ft dry Retail: up to 1,000 sq.ft dry Car park: adjacent to the retail store Equipment: forklift, platform trolley and pallet trolley Staff: one through the summer, two through winter Stock: minimum storage for about 24 pallets Working Capital: c.ÂŁ5,000 plus VAT VAT: you must be VAT registered
Contact Rowland Parke or Stuart Gray on 01387 731 210 Website: www.woodfuel.scot Email: info@woodfuel.scot
t: 01387 731210 e: info@woodfuel.scot www.woodfuel.scot
discount centre
www.woodfuel.scot