We are excited to share this week's update from our Prepare 4 VC Accelerator alumnus Tino Go, founder and CEO of Baru that shows how simply listening to customers and new opportunities can help you expand your markets faster than ever expected. As some background, Baru is a distrubuted manufacturing platform currently serving the furniture and kitchen cabinetry markets. Baru has selected local manufacturing partners across the United States. Baru makes your furniture order less than 60 miles away from your delivery location.
Baru update by Tino Go
I wanted to share a story about Baru's business model virality and how it develops multiple network effects.
In three days, Baru established itself in San Diego after a customer inquiry on our website, which is still under development. I contacted a prominent interior designer to assist the homeowner and asked to speak to her favorite custom millwork provider. Baru's local supply chain instantly fell into place with our tech empowering local relationships and leveraging idle manufacturing capacity.
Our San Diego ecosystem was created in less than a week to include customers, two dealers, and San Diego's top cabinet manufacturer. They eagerly embraced Baru's tech and participation in our ecosystem because it benefits everyone involved:
Customers enjoy up to 40% lower prices for custom-made cabinets, avoiding the risk of stock shortages, and receive the product four times faster than with traditional processes.
Designers gain a new revenue stream and streamline their operations, reducing their processing time by two to six weeks.
Baru's technology increases manufacturers' production capacity fourfold while also doubling their profit margins.
One of the designers has already proposed Baru for a 100-unit apartment building to the developer. He is enthusiastic about the cost and operating risk reduction of using a local supplier for the construction.
Considering the average rate of kitchen rehabs in the United States, San Diego County sees around 90,000 kitchen renovations each year, creating a local market worth $500 million. With almost zero effort and cost, Baru has our first two dealers poised to tap into this lucrative market.
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