I Got 90k Stolen From Me

The year was 2020. Fresh off a successful stint scaling a sourcing and distribution division, Jared Ward, Founder and CEO of Luminous, has just launched his own company. The pandemic hit, and like many in the import-export business, he pivoted to distributing PPE. This is his Crisis to Comeback story.

Early Success, Devastating Setback

Our initial move was promising. We secured a $300,000 PO for nitrile gloves, a product in insanely high demand during that period.  Confidently, we placed the standard 30% deposit with a familiar supplier. Then, radio silence.

$90,000 Lost in the Chaos

Our $90,000 deposit vanished. The pandemic had created a breeding ground for bad actors.  Factories were prioritizing higher bids, leaving legitimate orders like ours unfulfilled. Many businesses, faced with this scenario, either folded or dug themselves deeper into a financial hole.

The Turning Point: Honesty and a New Strategy

We refused to give up. Instead, we devised a new, transparent approach:

1. US-Based Inventory Only: We pivoted to sourcing gloves within the US, prioritizing tangible inventory we could guarantee. While prices were higher, so was the trust factor.
2. Empathy and Education: Our sales strategy focused on understanding hospitals' needs and the challenges of the market. We offered authentic US-made PPE at a fair markup.
3. Transparency Over Hype: We rejected the industry practice of promising "direct access" to production lines, a tactic often used to secure deposits.

Success Through Honesty

This shift paid off. We built trust with hospitals, secured better payment terms, and fulfilled over $3 million in POs within six months.

Lessons Learned in the Trenches

The pandemic offered valuable lessons:

• Don't Panic, Strategize: In moments of crisis, take a breath and focus on crafting solutions. Frantic reactions often lead to bad decisions.
• Honesty is the Best Policy: Building trust through transparency fosters long-term success. Avoid the hype and focus on genuine value.

By staying honest, solution-oriented, and adaptable to a challenging market, we not only recovered from a major setback but also thrived. These are valuable lessons for any entrepreneur navigating an uncertain business landscape.

Want to learn more about overcoming crisis situations and building trust with your partners? Watch Jared Ward's full video on YouTube for insights on navigating challenging markets and discover strategies to ensure a successful comeback!

Scale with Luminous

Jared's story highlights the critical role of strong operations and a transparent supply chain in e-commerce success. Luminous empowers you to:

1. Streamline operations: Reduce friction and ensure smooth order fulfillment.
2. Optimize inventory: Maintain clear visibility and avoid stockouts during peak seasons.
3. Enhance supply chain transparency: Build trust with partners and ensure reliable order fulfillment.

Scale your e-commerce business with confidence. Book a demo with Luminous and see how we can help you navigate challenges and achieve peak season success.