Bootstrapping a $10 Million E-Commerce Business: Seismic Audio CEO Steve Acree (Part 2)

Sramana Mitra: What really clicked in gear in 2003? If you look 12 years back when you decided that this was where you’re going to spend your time, what clicked in gear?

Steve Acree: Just the idea that everybody is moving to the Internet. They’re interested in eBay and Amazon. I had really good success with the DVDs. At one point, that was going to be my career. I was going to be the DVD man, but I had to find something new. That’s when I decided to go back to school. I saw that the speakers business was working. After doing research, I realized that there are thousands and thousands of products that relate to audio equipment that are overpriced. I could cut out the middleman. I could become the brand. That’s what I did. I created my own brand. When you buy from us, you’re buying a Seismic Audio product. You’re not buying some other brand name.

Sramana Mitra: I see. So you private-labeled the product.

Steve Acree: Yes.

Sramana Mitra: That must have happened later. This didn’t happen in 2003, right?

Steve Acree: I was doing all the parts on eBay. I was using my name. To put them on eBay and know when somebody places a purchase what to ship them, I give them names like SA1, SA2, or SA3. All these bags had SA on it. It was already semi-branded with the SA name, but I didn’t want to call it Steve Acree Audio. I had a second roommate who was getting his Master’s in Geology. He just said, “You ought to make the business about earthquakes. It rumbles. It’s loud. It’s a big boom. You ought to call it Seismic Activity.” I changed it to Seismic Audio. That’s how the name came about. When I ordered my first batch of speakers, I told the guy to put Seismic Audio on it. That’s how the name came about.

Sramana Mitra: Let’s actually take it one step at a time. In 2003, you were still doing eBay only?

Steve Acree: Yes.

Sramana Mitra: What revenue numbers were you doing in that eBay channel in 2003?

Steve Acree: It was in the neighborhood of about $40,000 in sales. In 2000 when I was selling the parts, I did $27,000 in sales. Of that, around $15,000 was profit. In 2003, I got in my first load of speakers. Throughout the whole year, I did about $40,000 in sales.

Sramana Mitra: What happens in 2004?

Steve Acree: I jumped up to around $120,000 in sales.

Sramana Mitra: Just eBay?

Steve Acree: Just eBay.

Sramana Mitra: In 2005?

Steve Acree: I broke $200,000.

Sramana Mitra: Still eBay?

Steve Acree: Yes, I didn’t expand till 2007.

This segment is part 2 in the series : Bootstrapping a $10 Million E-Commerce Business: Seismic Audio CEO Steve Acree
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