By David MacDonald J ust fourteen months ago, Vagenas and the Pharmapacks team were buyers in what has become for them the familiar market of commercial real estate. In order to accommodate the inventory that went hand-in-hand with the $32 million in revenue Pharmapacks saw in 2014, a 32, 000 square feet warehouse was a necessity, not a luxury. It was moving day again. By this summer’s end, Vagenas and his team will store their wares in and ship them from yet another location: a new 142, 000 square feet location (that’s roughly the same square footage of the base of the Egyptian Pyramid of Djoser) and their projected revenue could exceed the $1 million per 1,000 square foot ratio seen in 2014. Now that Pharmapacks is Amazon’s largest retailer in the U.S. for health and beauty products, revenue projections are “somewhere between $140 and 160 million this year and,” Vagenas adds, “we’re projected to do close to $300 million next year.” This pay dirt is worlds away from the company that six short years ago was hemorrhaging money during what Vagenas calls, “the trials and tribulations.”
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MAY 2016 • SPOTLIGHT ON BUSINESS
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