Problem
Equipment parts businesses want to tap into the sales potential of eCommerce but are concerned about exposing their parts data and customers to competitors online. Current eCommerce platforms also do not let parts businesses sell to different customers in different ways and at different prices. Because parts businesses cannot sell online in a private and personalized way - they are using their salespeople as gatekeepers which is leading to overworked parts teams, underserved customers, and lost business.
Solution to Problem
PartsClub is a platform that lets parts businesses connect customers directly to their parts and people online in a private network with transaction terms (pricing discounts, billing terms, shipping methods, etc.) personalized to each customer. Sellers can invite customers into their private network to see their parts and buy from them online. Once signed up, buyers can invite their other vendors to list inventory on PartsClub for them to search and buy with personalized transaction terms. Once a user has signed up, added their network, and personalized transaction terms with each connection - they are situated to buy and sell parts frictionlessly within their own private online parts network.
Competition
SmartEquip - Procurement software for companies operating rental fleets which is private but small and very expensive to implement
Machinery Trader - Operates a small closed network of construction parts businesses but almost all participants are competitors and very few list pricing so businesses are left manually quoting
Proprietary Stores - Parts businesses who have built their own stores and would see success on a platform as threatening their previous eCommerce efforts and strategies
eBay & Amazon - general eCommerce sites with strong retail customer bases but have one set of transaction terms, high fees and no privacy
SourcelineMH - Operates a small closed network of forklift parts businesses but almost all participants are competitors and very few list pricing so businesses are left manually quoting
Products / Services
The PartsClub platform facilitates and removes friction from the entire parts sales process for both buyers and sellers: parts search - quoting - ordering - payments - shipping - confirmations - invoicing - CRM and more. PartsClub takes parts transactions from requiring 4-8 buyer-seller touchpoints to almost none. This efficiency gain allows buyers to get back to work and allows sellers to more effectively use their time and energy to grow their parts businesses.
Market Size
Agricultural Equipment Parts Industry (North America & Europe): $8,000,000,000/year Construction Equipment Parts Industry (North America & Europe): $12,000,000,000/year Industrial Equipment Parts Industry (North America & Europe): $5,000,000,000/year
Customers Current / Potential & Sales Strategy
We have (7) large sellers committed to using the platform and are in conversations with (30) more parts businesses. The sales strategy hinges on user invitations/connections. We will be driving viral, organic, and inexpensive growth by pushing users to build their networks - inviting their customers to sell parts to and their vendors to buy parts from. Basic Membership is free and comes with unlimited parts uploads and unlimited connections to help drive viral adoption.
Exit strategy
Acquisition - platforms selling full pieces of equipment (tractors, backhoes, forklifts, etc.) have been very successful online but they have struggled to not addressed the parts market. We think we can use free memberships, free parts listings, and user connections to generate a network effect. This would allow us to become a utility that aggregates the equipment parts industry and be a very valuable acquisition target to companies like Ritchie Bros.
State
Texas
Industry/Vertical
B2B Software
Key Advisors / Board Members
Logan Murphy - COO at Arrow CRM Alex Kraft - CEO at Heave Joe Scott - Fixed Operations Manager - Lithia Motors & Parts Innovations Podcast James Stevenson - Corporate Parts Manager - Southeast Industrial Equipment Tim Hulsey - Corporate Parts Manager - Ag-Pro Companies Darin Moxley - Corporate Parts Manager - Yancey Bros Company
Legal Entity Structure
Texas Corporation (C-Corp)
Type of Financing Sought
Equity
Current Amount Invested & Investors
Zac Jones (Co-Founder) - $100,000 USD Marcin Krzaczkowski (Co-Founder) - $25,000 USD
Use of Funds
1) Finish revenue-generating development work (i.e., self-service advertising module, API integrations with ERP systems, etc.). 2) Marketing - direct mail, email, social media, conferences, etc. 3) Sales - get business development reps hired, onboarding new sellers and upgrading existing sellers to paid accounts. 4) Customer Service - get CSR's hired and on board
Number of Employees
7
Company Address
2028 E Ben White Blvd. #240-1104
Management
Co-Founder: Zac Jones (CEO)
Co-Founder: Marcin Krzaczkowski (CTO)
CEO Experience
5 Years in the Equipment Parts Industry (eCommerce, Sales & Warehousing)
Master's Degree in Philosophy (Specialization in Behavioral Economics & Choice Architecture)
Access to robust mentorship network of Founders and Executives in the equipment industry