A History of Global Sourcing & Thinking- Outside the Box

CEO Lucas Michael Payne began sourcing products from overseas in the late 1990s. While working as a operations manager at Wireless Depot (a chain of 11 cell phone shops) in the Chicago area. The company was facing cash flow problems around the cost of cell phones and keeping enough stock as they were waiting for the payouts from previous activations. The cellular phone companies had set pricing to dealers that was tiered to benefit top performers but even then, didn’t leave much margin. 

Lucas began researching how to buy phones more efficiently, refurbished phones, unlocked cellular phones (not specific to one network) and other ways to obtain phones directly from the manufacturers. Because of their deals with the cellular companies, they would not sell new phones to dealers, especially in small volume. 

What companies like Nokia and other suppliers did allow is for dealers to purchase replacement parts for repairs. The 3300 model was one of the most popular models at the time and back then the phones were easy to open and fix. He soon realized that if he bought the phone in parts from the OEM or ODM manufactures in China (display screen, board, case, battery, charger, instruction manual and box) he could purchase the phone for about $30, instead of the $120 price from 

T-Mobile. 

Every Friday night after closing the stores he would have his managers meet him at the flagship store and put together phones. That competitive edge in price allowed them to offer the same phone that most dealers offered for $100 with a $50 rebate, for $50 with a $50 rebate!  

Sales went through the roof and Wireless Depot eventually sold its stores in the Chicago area to US Cellular.  

In 2010, Lucas was Director of Operations for a startup focused on hydrogen fuel cell technology. During that time LED technology for commercial applications was starting to make financial sense. 

The energy savings from LED, a lower cost to purchase products, and the addition of cash incentives and rebates offered by utility companies to push business to upgrade their lighting all contributed to the explosive growth of the LED industry.  

Lucas formed Advanced Custom Energy Solutions (ACES) and began retrofitting commercial properties around the country with LED lilghting. 

The problem was the manufacturers had many barriers to become a distributor. Rather than compete with the outdated distribution model, Lucas sought direct relationships the original manufacturers. 

For over 20 years we have purchased directly from OEM’s (original equipment manufacturers) and ODM’s (original design manufacturers) in China, Mexico, and throughout the globe.  

These original often produce the same products for multiple “manufacturers” under the private labels such as Leviton, Cree, Cooper, and Sylvania. 

They also produce private label products for VAR’s (value added resellers) like Home Depot, Grainger, Lowes and any number of smaller companies and distributors.