November 22, 2004
Garage sale | A chat with Mark Maguire, co-owner of 2nd Life Tools LLC in Hollis and Westbrook.
By Dorothy Ogrodowczyk
Founded: January 2004
Projected revenues, 2004: $16,000
Projected revenues, 2005: $60,000
Address: 32 Little Falls Rd., Hollis
Phone: 252-5896
Web: www.2ndlifetools.com
Describe what your company does.
We're an online listing service for customers to buy and sell used equipment in garages, like lifts, diagnostic equipment, transmission flush machines and brake lathes. Most folks listing items are businesses like machine shops, dealerships and fleet companies. Big companies might have a piece of equipment that for them is no longer productive, but might help a smaller place grow their business. We charge a flat fee to list on the site ˆ $25 for six months, and $10 for a three-month extension.
How many employees do you have?
Two. Me and my business partner, Patrick Wallingford
When did you first get the idea for the company?
Last fall, we were working for NAPA Auto Parts as outside salesmen, selling equipment to businesses. NAPA customers often said they wanted to move old equipment before they would buy anything new. We put together a binder with photos of used equipment [that people wanted to sell], and [the business] grew from there.
What was the biggest challenge going from idea to reality?
Getting the word out. Everyone who sees it says it's a great idea. Before we started the company, we looked for a long time on the Internet for a service like this, but there was nothing like it.
What have you achieved since then?
We've helped businesses sell more than $230,000 in equipment. Businesses we've talked to have been happy with the service.
What's the competition like and how do you differ?
We really don't have any [competition]. The only other place that people compare us to is eBay, but we're not so massive. If you search for "tools" on eBay, you'll get 70,000 hits. We're more specialized with what we list.
If someone puts an ad on eBay or in the paper, they'll typically get 40-50 e-mails about the item. Most shops bill by the hour, so answering e-mails takes away time they could spend working. We list detailed descriptions of the items on the Internet, and because the sellers know the value of items they don't spend a lot of time negotiating pricing agreements.
How do you market your business?
We built a bus, which we call a "custom RV." It started out as a later model International bus. It attracted attention, and people said, "You've got to put your logo on it!" It has a custom stereo, and we're going to install DVD and navigation systems. We take it to car shows and to NASCAR races. The Bone [radio station] is a sponsor. Honestly, the bus is more fun than it is business, but it helps get the word out.
What are your plans for growth?
We're currently working with a website designer who is going to convert the website to a database-driven system so it can handle large volumes of traffic. It's a custom program, and it will be on our own server with a backup. We're also adding more features, like searching by price and brand, and more security measures.
We're working with people in other states in the Midwest and in Arizona and Florida to add more states to the listings. Right now, most listings are in Maine, and a couple are in New Hampshire.
Describe a mistake you've made in your business and what you learned from it.
Going with a national chain for our Web design. We spent a fortune on it and they didn't do a good job on the site, and they didn't respond in a timely fashion. Now we use Hosting Here in Biddeford. The service has been great, and we've been very demanding.
If you were given $500,000 toward your business, what would you do with it?
Putting it into advertising would be our smartest use, letting people know exactly what we do.
That bus sounds pretty cool. What do you like best about it?
The look on people's faces when they see it. Everyone wants to come on board and up on to the deck.
New Entrepreneurs profiles young businesses, 6-18 months old. Send your suggestions and contact information to dorothyo@mainebiz.biz.
Projected revenues, 2004: $16,000
Projected revenues, 2005: $60,000
Address: 32 Little Falls Rd., Hollis
Phone: 252-5896
Web: www.2ndlifetools.com
Describe what your company does.
We're an online listing service for customers to buy and sell used equipment in garages, like lifts, diagnostic equipment, transmission flush machines and brake lathes. Most folks listing items are businesses like machine shops, dealerships and fleet companies. Big companies might have a piece of equipment that for them is no longer productive, but might help a smaller place grow their business. We charge a flat fee to list on the site ˆ $25 for six months, and $10 for a three-month extension.
How many employees do you have?
Two. Me and my business partner, Patrick Wallingford
When did you first get the idea for the company?
Last fall, we were working for NAPA Auto Parts as outside salesmen, selling equipment to businesses. NAPA customers often said they wanted to move old equipment before they would buy anything new. We put together a binder with photos of used equipment [that people wanted to sell], and [the business] grew from there.
What was the biggest challenge going from idea to reality?
Getting the word out. Everyone who sees it says it's a great idea. Before we started the company, we looked for a long time on the Internet for a service like this, but there was nothing like it.
What have you achieved since then?
We've helped businesses sell more than $230,000 in equipment. Businesses we've talked to have been happy with the service.
What's the competition like and how do you differ?
We really don't have any [competition]. The only other place that people compare us to is eBay, but we're not so massive. If you search for "tools" on eBay, you'll get 70,000 hits. We're more specialized with what we list.
If someone puts an ad on eBay or in the paper, they'll typically get 40-50 e-mails about the item. Most shops bill by the hour, so answering e-mails takes away time they could spend working. We list detailed descriptions of the items on the Internet, and because the sellers know the value of items they don't spend a lot of time negotiating pricing agreements.
How do you market your business?
We built a bus, which we call a "custom RV." It started out as a later model International bus. It attracted attention, and people said, "You've got to put your logo on it!" It has a custom stereo, and we're going to install DVD and navigation systems. We take it to car shows and to NASCAR races. The Bone [radio station] is a sponsor. Honestly, the bus is more fun than it is business, but it helps get the word out.
What are your plans for growth?
We're currently working with a website designer who is going to convert the website to a database-driven system so it can handle large volumes of traffic. It's a custom program, and it will be on our own server with a backup. We're also adding more features, like searching by price and brand, and more security measures.
We're working with people in other states in the Midwest and in Arizona and Florida to add more states to the listings. Right now, most listings are in Maine, and a couple are in New Hampshire.
Describe a mistake you've made in your business and what you learned from it.
Going with a national chain for our Web design. We spent a fortune on it and they didn't do a good job on the site, and they didn't respond in a timely fashion. Now we use Hosting Here in Biddeford. The service has been great, and we've been very demanding.
If you were given $500,000 toward your business, what would you do with it?
Putting it into advertising would be our smartest use, letting people know exactly what we do.
That bus sounds pretty cool. What do you like best about it?
The look on people's faces when they see it. Everyone wants to come on board and up on to the deck.
New Entrepreneurs profiles young businesses, 6-18 months old. Send your suggestions and contact information to dorothyo@mainebiz.biz.
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