Supplying Steel Drilling Products to Oil & Gas: Low Working Capital & High Job Value
We are a 15-year-old company serving the Steel Pipe Industry. We are internationally recognized for our professionalism and client satisfaction with our products and services.
OPERATIONS
We specialize in the supply and distribution of steel drilling products for the oil and gas sector. Our average job value ranges from $100k to $1.2M, and we have a low working capital requirement.
We offer a range of steel drilling products, including casing, tubing, and drill pipe, made from carbon steel, stainless steel, and other materials. We handle inland and ocean freight, nationalization, and importation consultation.
MARKETING AND KEY METRICS
Our marketing strategy includes a weekly email campaign to more than 2,600 subscribers. We also participate in industry conventions to generate leads and expand our customer base.
To grow our sales, we plan to invest in prime OCTG and become a retailer of prime pipe. This will allow us to have a larger inventory and wait out market fluctuations while ensuring profitability.
Our key metrics include job value, customer satisfaction, and repeat business. We measure the success of our operations based on the profitability and efficiency of each job.
Our typical customers include companies engaged in the OCTG business and construction in Canada, Europe, the US, and Latin America. We have built solid relationships with our customers and consistently meet their needs.
BUSINESS MODEL & RESOURCES NEEDED
We have a small team consisting of two salespeople and one logistics staff. We are looking to expand our team to include four salespeople, two logistics and handling staff, a campaigning and marketing manager, and an IT specialist.
THE INDUSTRY
We operate in the Oil Country Tubular Goods (OCTG) industry, which is involved in the production and distribution of high-quality steel pipes for oil and gas exploration. The industry is driven by the demand for oil and gas in developing countries and technological advancements.
OPPORTUNITIES TO SCALE
There are several scale opportunities for our business. One example is purchasing imported materials and renting a personal yard, which would enable us to expand our operations and offer rental opportunities to other businesses in the pipe industry.
Asking Price: $1,750,000
Gross Income: $6,971,530
Cash Flow: $584,183
Year Established: 2005
Employees: 3
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