Flashpoint Technology

5. Flashpoint Technology

Sales of excess inventory | Established in 2003

Flashpoint offers discreet sales of excess IT and CE inventory. Working with some of the largest manufacturers in the world, it has continued to demonstrate the ability to dispose of product for clients often outside the territory they are working in. With around 95% of all sales exported to either the Far East or USA, Flashpoint has established itself as the number one choice for leading companies for discreet, controlled product disposals.

594.8% growth between 2008 and 2010

Origins

James Norris and Clive Murphy, the co-founders of the business, had worked together in a supplier and customer relationship for about eight years. At the time, James was sales director for Northern Europe for one of the biggest component suppliers in the world and Clive was Managing Director of a system integrator. Clive had subsequently left the company to start Trojan Electronics, an electronics manufacturing and refurbishment business based in Swansea. However, James and Clive still had a burning ambition to start something together and where both confident that with their contacts in the IT industry would soon be able to be trading product and Flashpoint started trading in December 2003.

Our main challenges when starting the business

As with most new businesses, one of our biggest challenges was going to be cash flow especially as Flashpoint was going to be trading in a high volume low margin market. Flashpoint’s first sale was to a one of the UK’s leading PC assemblers and was for just over £40,000. However, as both James and Clive had good reputations within the industry, they were able to get a couple of days’ credit from their supplier. Flashpoint then tried to construct all of its trade in this way, purchasing from a supplier, agreeing payment could be made in a couple of days, collecting and shipping the product, getting paid by the customer then immediately paying the supplier. This “back to back” trading enabled Flashpoint to grow quickly.

Success Factor

James and Clive had both been in the IT & Consumer Electronics industry for nearly 15 years prior to starting Flashpoint. Their industry knowledge was second to none and they had direct contact with world leading manufacturers and some of the leading businesses in this market. The business connections and good standing, resulting in trust, that had been built over these years was one of the main reasons Flashpoint was able to rapidly grow its business. We have continued to push the company forward, expanding the companies supplier and customer base.

The Future

The business will continue to grow by expanding its product range and its customer base. Flashpoint has continued with its plans to not only be an exporter but to also import different types of products into the UK and Europe for sale in these regions with strong sales now throughout the EU & growing sales further in the UK. The Far East still remains Flashpoints biggest market and expansion into other developing markets/countries is key to the continued growth and success Flashpoint has enjoyed.