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    Lux-Ps - Full of Potential, Difficult to Scale

    August 19, 2016

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    Lux-Ps - Full of Potential, Difficult to Scale

    August 19, 2016

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    Pascal Knebler

     

    Lux-Ps entered a huge European market in second-hand cars; as a result of the sheer size of the industry, each country offers their own related rules and regulations. I found a niche very quickly though as the Italians were put off big cars due to the tax and I found a market for them in Denmark. My partner and I decided to try a test run by going to Italy, buying two large cars, taking them to Denmark, and selling them for a profit; it worked like a treat. 

     

    We decided to then take the next step and get in contact with dealers in Denmark that needed these sorts of vehicles; with my Danish-speaking partner in tow, we targeted big dealers for a number of cars per week. The important part of this process was finding the right cars because wasting money on a poor car will offset the money made on up to 5 successful ones. I have been into a cars from a very young age, have always repaired my own vehicles and have spent a lot of time around older cars but I knew I couldn't take this for granted because second-hand cars are easily tampered with. If I wasn't careful, I could have bought a car that had completed significantly more kilometers than the clock suggested. All in all, it was going well. I was flying to Italy, buying used cars, fixing them up if required and selling them on in Denmark. The dealers wanted more and I was loving it because it was my passion. 

     

    The next obvious step was to expand the business but this was where the problems started, I couldn't find someone that was as meticulous as me. I hired two different people, spent some time with them and then left them to their own devices but too many mistakes occurred and the quality of vehicle reaching Denmark started to fall. In a way, I didn't blame these employees because the job required constant trips abroad and it wasn't their money they were wasting after a mistake. 


    After starting Lux-P in 2003, trading came to a complete stop just four years later in 2007. At the height of business, we would ship 120 cars per year which averages out at just over one lorry load of 8 per month. The premise was good, we completed the right research but with my full-time job, it was incredibly difficult to scale the business and grow into the market. 

     

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    Seed investor and startup consultant

    Corpoinvest Soparfi

    www.voip-luxembourg.lu