As the smaller inflatable bouncy companies, started to see the top star tier bouncer companies rake in most of the available orders, they started to try to expand by having companies band together and form new partnerships and bring in new partners and even get bank loans to expand.
Those that couldn’t form any of the above scenario’s reverted back to rental companies which were forced to accept the status quo or in the end, just folded their business. This was actually the second big shake up since the 9-11 to hit the industry.
As the top star tier companies enjoyed their new found success, one particular company, after trying to expand and catch up, decided to do something to make a difference. He travelled to China, found a company that could produce inflatables and partnered up with them whereas he shared idea’s designs and quality control methods. Even with the cost of shipping overseas, he was able to offer an inflatable product at even a lower cost than the top star tier companies.
This was a major shift that would continue to ripple for the next 10 years. This moved caused this company to become the talk of the industry, this was just unheard of. Personally I think many others had wished they had thought of this. Living in China in order to cooperate with the Chinese, he was able to teach them all the methods and methodology behind building inflatable products. He returned to the trade show floors with a whole new line of quality designed inflatables, but even now a lower cost than the star tier. The rental companies who bought these inflatables looked them over good. The low price points on these were hard to overlook.
They looked and they bought. Now the ground was starting to level for this one company. Now skip down about a year, and one of the top tier star companies took note. If they are selling quantity now, what could they do if they looked into China? Well they made the move. They used their strong financial background to form a relationship with a china company also. After some growing pains moving from America to china they began production in China with all their new designs. To move this up a notch, they kept the factory building around the clock and started a new concept for the inflatable industry called inventory. They produced around the clock building up an inventory then shipping it over to America. Now they just didn’t have, high quality and low price, but also had a “buy it now” or “in Stock” approach.
The selling angle had the design element, it had the low price, but now you didn’t have to wait for 3-5 weeks. It was “in Stock” buy it now and take it home. This was everything in regards to features that rental companies wanted and needed.
Now the stakes just got higher again. Where was it to end? The ceiling was getting higher and the smaller companies were falling further behind. Continued in Part 6