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| Overview
US Surface Warehouse (USSW) is a private, vertically integrated company which manufactures, markets and distributes solid-surface sheet materials, solid-surface sinks and lavatories, and stainless-steel sinks. Our LivingStone® solid-surface products are manufactured at our plant in Daejon, Korea. Our corporate offices are located in Austin, Texas. We currently have warehouse/distribution centers in southern California, northern California, Tennessee, Texas, Utah, Pennsylvania, Washington and Colorado. While our competitors sell their products through independent distributors and agents, we take a much shorter route to market: We sell directly to fabricators. By streamlining the distribution chain, USSW is able to offer both fabricators and consumers significantly better value, while allowing us to respond more quickly to their needs. Background For most of our careers, the principals of USSW have been involved in the manufacturing, marketing and distribution of the best-selling solid surface brands. In the last several years with these companies, we came to believe that to continue to grow and prosper, the solid-surface industry needed fresh thinking.We concluded that the traditional, multi-step distribution model was outmoded. We were aware that the ever-increasing number of colors was resulting in ever-increasing costs throughout the distribution chain. It seemed to us that only a private, vertically integrated company with a streamlined route to market could eliminate redundant, non-value-added costs and enhance the value proposition of solid surface. And that is precisely the kind of company we built. |
The Smart Palette™ Extensive research shows that consumers shopping for solid surfaces are stressed, confused, and overloaded with too many color choices. It also shows that consumers prefer the look of textured colors over solids, provided that the installed prices of textured colors are comparable.75% of the sales of the best-selling brands are from about 25 colors, even though some brands offer more than 100 colors. Since we know from our experience in the industry that slow-moving colors increase costs throughout the distribution chain and that these costs are passed along to retailers and consumers, it seems only logical to eliminate slow-moving colors. That's just what we did. We developed a logical, refined color palette, limited to simply the best-selling colors: the LivingStone® Smart Palette™. Currently, the best-selling colors in the industry are neutrals and brown hues. The LivingStone® color offering clearly reflects this. Yet our Smart Palette™ also includes best-selling red, blue, green, grey and black hues. This makes our range of colors comprehensive enough to allow consumers to easily coordinate our product with virtually any decor, yet limited enough to allow us to offer surprising value. Because of the focused, streamlined nature of both our color palette and our business model, we can deliver large-particulate, premium colors which are priced below the solid and small-particulate colors of the leading brands. These large-particulate colors, which research shows that consumers prefer, make up more than half of our Smart Palette™. |