To demonstrate the value of this product, consider the following scenario* A single factory application customer has indicated a potential for 150,000 shots per week @ £0.03 per fill sell price, or 7,500,000 shots per annum, equivalent to £225,000 of revenue. This customer has 25 factories and stated that it would like to roll out the technology to all of them as they are currently filling all nail holes by hand. Nail Seal results in
a 60% cost saving when compared to current methods.
The volume of filler we are looking at based on the above scenario is approximately 2,250 litres per factory,
with a total of 56,250 litres if rolled out to the other factories within the company. Our aim is to look at a
staged product release starting with the ‘low hanging fruit’ of the industrial user before expanding to the professional tradesman and dedicated trim crews.
These figures are obviously just based on one customer in one sector of the market and it is estimated that 50% of the total nails used across all industry sectors require filling. Assuming a total market for nails of
70bn per annum, total market potential is £350m.
A 10% share of the market potential for the Nail Seal consumables is therefore estimated at £35m and a
modest 5% still being worth and estimated £17m.
These estimates result in a long term total market potential for Nail Seal consumables of between £350m - £750m, however these estimates are conservative as alternative sources suggest total sales of nails far exceeds 70bn per annum.
* data from direct market research obtained during field trials.