Company Performance Metrics
SHARKMARX is a cloud-based purchasing platform for the home improvement industry that uses reverse auctions to save buyers an average of 15% on materials. Using crowdsourcing, SHARKMARX generates competitive bids on products like landscape materials, building products, and equipment. With traction in the Northeast U.S. SHARKMARX will move into
nationwide expansions.
Phase I
Landscaping industry | Northeast U.S. | in progress
SHARKMARX successfully proved its concept by focusing on concrete pavers and walls and natural stone products in the Northeast U.S., a $309M market segment. The launch was designed to validate the model and build brand trust for a new technology prior to expanding into the $1.9B national market.
These sales came from SHARKMARX’ “Get YOUR Price” reverse auctions, where contractors post their material needs and maximum price to open bidding. SHARKMARX automatically solicits real-time, competitively priced bids from suppliers. This bidding process drives prices down for buyers, while suppliers are able to expand their sales channel and reduce late receivables with SHARKMARX’ “patent pending” electronic payment process.
SHARKMARX has two primary revenue streams, both derived from the seller:
• Annual subscriptions of $99
• A transaction fee of 3%
SHARKMARX will begin transitioning into its Phase II implementation during late Q3 and Q4 of 2013. This calculated, phased approach has helped SHARKMARX build brand trust among its initial target customer base, making it easier to convert and grow these customers into SHARKMARX Phase II rollout.
Phase II
Landscaping industry | U.S. | growth stage
As SHARKMARX builds brand trust with its landscape contractors, mason contractors, and suppliers, it can expand its business organically. As its customers realize savings on their hardscape goods, they will want to realize similar savings on other products they purchase. SHARKMARX can expand vertically with other products such as mulch, equipment, etc. SHARKMARX has already experienced this expected progression, successfully completing auctions for Ice Melt, Heating Oil and requests for lumber and fencing.
These additional materials in the landscape/masonry vertical market present significant opportunities to SHARKMARX. The table below illustrates the magnitude of this growth potential.
Phase II – Vertical Market Opportunities
Market > Market Size
Concrete pavers and walls* > $1.9 Billion
Commercial mowing equipment > $5 Billion
Mulch and Topsoil > $1.6 Billion
Commercial Utility Trailers > $600 Million
Waterscapes > $150 Million
Heating Oil** > $11 Billion
Raw Materials > $13 Billion
Ice Melt ** > $2 Billion
Phase III
Home Improvement industry | U.S. | growth stage
Similar to Phase II strategy, Phase III will capitalize on brand trust and proven savings performance established during its launch phase and expand into horizontal markets under the home improvement category. The targeted buyer in other home improvement markets has a similar profile to that of the current SHARKMARX landscape and masonry contractor. Similarly, the problems facing a home improvement contractor are analogous to those facing the landscape/masonry contractor. (See "Buyer Profile" and "Problems > Solutions" on following pages.)
The table below illustrates the market opportunities to expand into other horizontal markets in home improvement.
Phase III – Horizontal Market Opportunities
Market > Market Size
Roofing shingles > $3.3 Billion
Decking > $3.1 Billion
Siding > $6.3 Billion
Windows > $5.7 Billion
Doors > $6.3 Billion
