MicroBlend’s innovative point-of-sale business model results in several benefits for retailers
Capability to Produce Virtually Any Color or Quality of Paint at the Point-of-Sale
The MicroBlend system currently provides customers with the capability to produce over 2,400 SKUs of paint in virtually any color and quality at the point-of-sale or use. MicroBlend’s system allows customers to choose from over 3,700 pre-formulated colors, nearly 50,000 competitor fan deck colors and virtually any color through its color scanning and matching technology. Additionally, the system currently offers interior, exterior or primer paints, in eight different quality and sheen levels, as well as five different size variations. This offers a significant advantage to retailers that often carry only 500 different SKUs due to cost of inventory and limited retail space.
Increased Sales per Square Foot for Retailers
The APM® system significantly reduces the average in-store area devoted to the sale of paint to approximately 200 sq. ft., which significantly increases paint retailers’ sales per square foot 6 to 12 times versus the industry average. This newly available store space provides retailers with additional revenue potential as an increased number of products can be stored and sold. MicroBlend’s point-of-sale system also promotes increased sales by eliminating out-of-stock inventory concerns (leads to 4% reduction in sales on average).
Lower Operational Cost and Inventory Benefits Due to More Efficient Supply Chain
MicroBlend’s point-of-sale production process increases the overall efficiency of the supply chain by decreasing the number of steps involved in the paint production lifecycle from approximately 12 (in the conventional paint model) to six (utilizing the MicroBlend system). According to a study performed by DuPont, MicroBlend’s point-of-sale technology provides 18% operational cost savings in the retail consumer value chain and 44% operational cost savings in the direct user value chain, compared to competitors’ traditional models.
MicroBlend only manufactures six pre-paint components, as opposed to the thousands of finished SKUs manufactured and stored by traditional paint manufacturers. Since MicroBlend’s products are manufactured and sold at the point-of-sale, the Company generates significant savings in terms of shipping, handling, labor and inventory storage costs for both itself and the retailer.
Differentiating MicroBlend from other paint manufacturers and brands
- Improved Paint Productivity
- Big improvements in Sales/Sq. Ft.
- Less space required
- Increased Paint Profitability
- Increase in Cash Flow and Profitability
- Less inventory
- Less Labor, Shipping and Handling
- Obsolete and Shrinkage of Inventory
Our APM® system and program has produced dramatic metric performance improvements for our customers.
- Tremendous revenue growth
- Impressive GMROI improvement
- Double digit growth of contribution margin
- Significant inventory reduction
- Four bays per store were re-purposed to create additional sales space and generate additional revenue.
Proven Support Model
- Uptime of MicroBlend system is 99.9%
- 92% of issues resolved quickly over the phone; all others received on site assistance from a trained field technician
- Less than 1% return goods
Significant Environmental Benefits
MicroBlend’s paint production life cycle was studied by an independent consultant and has been estimated to provide a minimum improvement of 10% in terms of its total carbon footprint compared to the traditional method. The Company’s paint production process offers benefits including reductions in mining of solids, raw resin manufacturing, transportation, paint manufacturing, storage and waste disposal. Specifically, the production process reduces total paint waste by 30% and enables the re-use or re-fill of paint buckets.
Component Blending System (CBS)
The CBS is another one of MicroBlend’s unique innovations. It is a mini-factory for blending raw material components for use in the APM® systems. These operations are strategically located close to the retailer’s distribution facilities. This dramatically shortens the supply chain and significantly reduces freight costs. The facilities are environmentally-friendly, with zero discharge. CBS facilities are sized to support the number of stores served by each distribution facility, in order to further maximize efficiencies. The proximity allows for rapid re-supply, requiring stores to carry even less inventory.
Proven patent protection
- 14 U.S. patents, 6 international
- Ability to produce paint at POS
- Pre-paint composition chemistry
- APM technology, system software and other advancements
- Patents are highly interdependent, which provides additional layer of protection
- Combination of existing array of patents, trade secrets, interdependencies and solution complexity creates a significant barrier to entry
MicroBlend’s continuous improvement process is an ongoing effort to evaluate our systems, products and processes. Recent engineering enhancements have resulted in reductions along many fronts including system size, weight, costs and installation process. Other improvements include state of the art production facilities that showcase MicroBlend’s commitment to excellence, as well as proving paint quality against top national paint brands and maintaining relevance with industry trends.