In their quest to alleviate their allergies, brothers Eugene and Michael Ravitsky procured the ideal air purifier together they launched FactorPure, and expanded their business to include heaters, generators, air compressors, and other household machinery. In this episode of Shopify Masters, Eugenee shares their strategy to finding eight-figure success in a high cost, low margin industry.
For the full transcript of this episode, click here.
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Why a low barrier to entry isn’t always ideal
Felix: Tell us about the genesis of the business.
Eugene: When we started FactoryPure in 2013, we started as an air purifier company. That’s where the name FactoryPure china mobile database actually originated. The reason that we started with air purifiers is that it was fairly easy to get started with a dropshipping model. We just had to throw up a generic website. A lot of the brands were willing to work with companies that didn’t have any track record or sales. It was very easy to get started.
We quickly found out that it’s also very hard to compete
The same reasons why it’s easy to get started are the reasons why there’s no barriers to entry. We pivoted several times and landed on what we do now, which is primarily power equipment generators. We do a lot of other products, but generators make up a big chunk of what we do.
With generators or with gemma barraclough heavy equipment in general, the manufacturers are a lot less willing to do dropshipping. We happen to have a warehouse that our father was not using at the time, so we were able to move into be numbers that and take advantage of that resource that a lot of other companies didn’t have. At the time there was a lot less competition because you had to have a place to store the equipment, you had to have machinery to move it. You had to get shipping rates that would be sufficient to compete with a lot of the bigger guys. We pivoted to that and it worked out better than air purifiers.
