Sand bags checked and weighed ready to be heat sealed.
This morning I spent a few hours in the warehouse making sure we are doing the punch bags correctly and that the various quality control processes are being followed. One error is one error too many and we have to be spot on with what is being produced. The sand bags which form the inner tube of the punch bag is where the real money is made and next year will implement a new method which will save us an extra 60%.
This morning we had to catch up as this week we received a few large orders from our retail clients topping up their stock holdings for the Christmas period. This was expected and we should have another 3 more orders being submitted this week. Our task is to fulfill the numbers and the crazy part is we have never been able to build up a stock holding in the last 16 months. The numbers have just been gradually increasing since we started back in August 2024.
This I have held back on until our main client was on their feet financially as I did not want to show our hand on how profitable this business is. They have benefitted more than they should this year as we have been operating at cost and thought it was only fair to cover our running costs during this waiting process. This was an extra business that I was given that I had an eye on for many years and would never risk losing this. They are expected to be in the clear starting January and then we will feel the benefits of this business. I know how much this is worth and 2026 will be a very good year. The 60% savings will basically be all profit and have been chomping at the bit to implement the new set up. This is the biggest business I have had in my career and the timing could not be better.
There is a much bigger picture in play than just the punch bag business and why holding back running at cost was the right call. Over the last 16 months we have all learned so much and are more than ready to take this business to the next level. Our accountant though it was a crazy call to make and one of the reasons why we will have a new accountant in the New Year. Business relationships are built on trust which is a balance between give and take. The punch bag business is a business on it's own and is more profitable than the warehouse business and why the call was made to protect both businesses running the punch bags at cost. I know my numbers and know exactly how much this business is worth monthly and would make the same call again if I had to.
This week we received 11 tons of the precious material waste which is the back bone of this business. Without this sort of consistent volume supply you are never going to be able grow this business and our supplier has been true to their word with a consistent supply over the last 12 months.
I manages to have 9 bales tucked away from the rest which when the space is cleared over the coming weeks will be moved into a separate area under lock and key. Each bale varies in weight between 300 and 350kg's. Each row of 3 bales you see is roughly 1 ton per pallet and shows you how compacted this material is and why my filling crew favor using this material over the other waste materials sourced.
The company that supplies the material waste must be seen as an extra bonus because this is a by product that should have no monetary value. We have received 8 shipments this year and feel fortunate and lucky I found them when hunting for a good 6 months. This was normally being exported which means there are other companies out there ready to pay an extra $0.50c kg compared to what I pay due to the shipping container prices.