Revenue Model - mybuildersmerchant.uk

Revenue Streams

Multiple complementary revenue sources create a robust business model

Commission on Sales

We earn a percentage commission on all materials purchased through the platform.

Commission Structure:

3-5% commission on standard materials
5-8% commission on specialty items
Volume-based sliding scale

Projected Revenue Share: 65%

Merchant Subscriptions

Merchants pay monthly or annual subscription fees for enhanced platform features.

Subscription Tiers:

Basic: £99/month
Premium: £249/month
Enterprise: £499/month

Projected Revenue Share: 20%

Featured Listings

Merchants can pay for premium placement and featured product listings.

Promotion Options:

Featured merchant status
Product spotlight placement
Category sponsorship

Projected Revenue Share: 10%

Premium Services

Additional revenue from value-added services for both builders and merchants.

Service Offerings:

Express delivery options
Premium support packages
Advanced project management tools
Specialised material consulting

Projected Revenue Share: 5%

Data & Analytics

Monetising anonymised market insights and trend data for industry stakeholders.

Data Products:

Market trend reports
Pricing intelligence
Regional demand forecasting
Custom research services

Projected Revenue Share: 0% (Year 1), growing to 10% by Year 5

Financial Projections

Five-year growth forecast with clear path to profitability

Projected 5-Year Financial Performance (£ Millions)

Key Financial Metrics

Metric	Year 1	Year 3	Year 5
GMV (£M)	2.5	25	120
Revenue (£M)	0.15	1.8	8.5
Gross Margin	65%	72%	75%
EBITDA Margin	-80%	5%	22%
Active Merchants	50	500	2,000
Active Users	5,000	50,000	200,000
CAC (£)	120	85	65
LTV (£)	350	520	780
LTV:CAC Ratio	2.9	6.1	12.0

Unit Economics

Our business model is built on strong unit economics that improve with scale:

Builder/Contractor Economics:

Average Order Value: £2,500
Average Orders per Year: 6
Annual GMV per User: £15,000
Average Commission: 4%
Annual Revenue per User: £600
User Retention Rate: 85%

Merchant Economics:

Average Annual Subscription: £2,400
Average GMV per Merchant: £300,000
Commission Revenue: £12,000
Featured Listing Revenue: £1,800
Total Annual Revenue per Merchant: £16,200
Merchant Retention Rate: 90%

Our platform becomes profitable at the unit level within 6 months of user acquisition, with improving margins as we scale.

Funding Requirements

Capital needed to execute our growth strategy

Investment Opportunity

We are seeking £2.5 million in Series A funding to accelerate our growth and execute our rollout strategy across the UK.

Use of Funds:

Product Development

40%

Marketing & User Acquisition

30%

Merchant Onboarding

15%

Team Expansion

10%

Operations & Overhead

5%

Investment Highlights

Massive Market Opportunity: £47 billion UK building materials market with low digital penetration
Unique End-to-End Solution: Solving critical pain points across the entire procurement journey
Strong Unit Economics: Attractive LTV:CAC ratio of 2.9x in Year 1, growing to 12x by Year 5
Network Effects: Value increases as more merchants and users join the platform
Defensible Position: Proprietary algorithms and merchant relationships create barriers to entry
Experienced Team: Leadership with deep industry knowledge and successful startup experience

Projected 5-year ROI for investors: 8-10x