Some business owners are drawn to the quick gains that come from reselling other people’s products. Sure, it may bump up the revenue for a while, but it’s not usually a path to long-term value. Buyers aren’t just looking at the top line—they’re after something distinctive, something they can’t simply set up shop and recreate.
The Power of Finding Your Own Market Niche
Take Luke Peters, for example. In the early days, he was selling portable air conditioners and thermostats, buying them retail and shipping them out, barely marking up a profit. There was no value added; he was simply passing products along with a thin margin.
Luke had a change of heart. Instead of staying in the highly competitive air conditioner space, he discovered a quiet, underserved corner of the HVAC world: portable beer and wine fridges. This was his big shift. Luke created a brand, NewAir, that didn’t have to go head-to-head with big appliance names. By zeroing in on this niche, he made a name for NewAir, giving it a solid reputation in a space he could dominate.
By finding his sweet spot, Luke transformed his business into something unique. NewAir wasn’t just another reseller; it became a brand people loved, with products that were easy to ship, fun to own, and perfectly tailored to its audience.
What Makes a Brand Valuable?
In the Value Builder System™, we talk about “Monopoly Control”—that ability to carve out a niche so well-defined it’s tough for competitors to imitate. Here’s how it boosts a company’s worth:
- Command Higher Prices
Distinctive products offer unique value, allowing you to charge premium prices. By shifting from reselling air conditioners to creating top-quality beer and wine fridges, Luke raised his gross margin and, ultimately, his bottom line—two factors that serious buyers find attractive.
- Build Customer Loyalty
A unique product sticks with customers. Luke’s fridges weren’t just appliances; they were part of an experience, drawing repeat customers who valued that connection.
- Draw Premium Offers from Acquirers
When potential buyers look at your business, they’re deciding if they want to “build or buy.” They’ll pay top dollar when your value is something they can’t replicate overnight.
From Reseller to Brand Builder: Luke’s $80 Million Milestone
Thanks to his shift toward an underserved market, Luke took NewAir from just getting by to generating $80 million a year. Ultimately, NewAir caught the attention of Lasko Products, who acquired it in 2021. Luke’s success story shows the value of transforming from a reseller into a brand with its own unique space.
I help entrepreneurs buy and sell remarkable businesses as well as help them plan their exits. If you would like to learn more about how much your company is worth and/or how to maximize the value of your business at exit, Click Here to schedule an introductory call with me or feel free to email me dave.godwin@cbiteam.com. I will help you discover how to find out if it’s the right time to exit and help you ask a higher selling price for your business. All information is managed in the strictest of confidentiality.
