Hot tubs are selling like hot cakes for two Tyneside entrepreneurs who have seen their sideline business become a multimillion-pound operation.
Dan Luper and Tom Jeffrey launched Wave Direct last year, an online business they ran alongside their day jobs, selling inflatable wave spas and hot tubs that can be set up in five minutes, as well as other sports gear including kayaks.
In its first year the Newcastle city centre based firm took £300,000 – but the arrival of lockdown and warmer weather has seen demand for hot tubs rocket, and the duo took £4m in April alone, representing a rise in sales of 1,600%.
Now, with the pair expecting to take in a further £500,000 this month, Mr Jeffrey, of Whickham, Gateshead, has left his job as e-commerce director for fashion retailer Jules B to focus completely on Wave Direct.
The business has had to rapidly build up its operations and logistics processes as it gears up to meet demand working with local North East logistics provider The Storage Place and order fulfilment solution Veeqo.
Mr Jeffrey, the firm’s managing director, said: “The past few months have been incredible and we’ve had to really ramp up our operational model and work around the clock to make sure our products are getting out to customers as soon and as safely as possible.
“It has been a huge challenge but one we’re hugely grateful for in the current climate.”
Meanwhile Mr Luper, of Gosforth, continues to run his online venture Custom Sourcing, which works with firms to competitively source products, but he says Wave Direct is taking up most of his time at the moment.
The pair see no sign of a slowdown in the business as holidays are cancelled and families seek to make the most of their gardens during the coronavirus pandemic.
They are now working closely with their suppliers to boost delivery times, while also working hard in their warehouse under new social-distancing guidelines to maximise the storage space they have for products.
Chief executive Mr Luper said: “Our suppliers are really going above and beyond to get goods to us much quicker than usual, which has allowed us to keep selling.
“We are taking more and more orders every day and even though our customers will have to wait a month or so for delivery I think, given we’ve all realised as a nation we’re not going anywhere for the foreseeable, they’re happy to wait a few weeks as they know they’ll make the most of the spas as soon as they arrive.”
Recognising their success is one of few positive stories being talked about at the moment, the pair will be donating a percentage of sales to NHS charities and offering a 10% discount for all NHS staff.
Mr Luper added: “When sales started to go through the roof we instantly wanted to give something back any way we could.
“We are hoping by providing key workers with a discount code and donating a percentage of our sales to the NHS we will be doing just that.
“All NHS staff need to do is provide us with ID and we will provide them with a discount code.”
The surge in sales will also allow the business to target international markets sooner than expected, with ecommerce websites for four more countries already being planned with its technology partner, Aero Commerce.
Mr Jeffrey added: “We are working with the team on a number of exciting developments and plan to move our sister site over to the platform as soon as possible.”
