How I Built And Scaled A $250M Per Year Filter Company

Published: November 21st, 2024
Filterbuy
Founder, Filterbuy
$20M
revenue/mo
1
Founders
1000
Employees
Filterbuy
from Talladega, AL, USA
started October 2012
$20,000,000
revenue/mo
1
Founders
1000
Employees
market size
$102B
starting costs
$13.7K
gross margin
45%
time to build
210 days
growth channels
SEO
business model
Subscriptions
best tools
PipeDrive, Upwork, Rakuten
time investment
Full time
pros & cons
35 Pros & Cons
tips
2 Tips
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Hello! Who are you and what business did you start?

Hello! I’m David Heacock, the founder and CEO of Filterbuy. Over the last decade, I’ve built a leading pleated air filter company, but now I’m on a mission to build the world’s leading indoor air quality company.

Filterbuy manufactures high-quality pleated air filters and offers HVAC services focused on creating healthier indoor environments. Our primary customers include families, businesses, and organizations across the United States who are committed to improving their air quality.

What makes Filterbuy special is our commitment to quality and our relentless focus on serving our customers. We manufacture 100% of our products in America, supporting rural and underserved communities by providing stable, meaningful employment.

We’ve taken what started as a small family business and transformed it into a thriving company with a growing national footprint in both products and services. Today, our business brings in around $250 million annually, and we’re only getting started.

filterbuy

How did you come up with your business idea?

The idea for Filterbuy didn’t come to me in a single “aha” moment. It was more of an evolution over time. My journey started in my late 20s when I left a career in options trading at Goldman Sachs in New York to buy a struggling family business back in Talladega, Alabama. Growing up, I never envisioned being part of the family business, which primarily operated as an old-school distributor for the wood products industry. But when the opportunity arose to buy the business, I saw potential where others saw limitations.

One of the biggest lessons I learned early on was that the best business ideas don’t always come from a single revelation but through experimentation and understanding of the market. In my case, the shift happened in 2009 when I started exploring e-commerce opportunities. I’d previously run a side hustle in affiliate marketing, which sparked my interest in creating direct-to-consumer businesses. During that period, I launched a business called My Office Delivered, which scaled to about $6 million in revenue in its first year. Interestingly, a quarter of that revenue came from selling air filters.

When I bought the family business, I was looking for a product that I could manufacture competitively in my hometown of Talladega, AL, and sell direct to consumers. It was crucial that the product was something I could produce efficiently in the US without having to compete heavily with imports. Drawing from my experience with My Office Delivered, I narrowed it down to two options: remanufactured ink cartridges and pleated air filters. Ultimately, I chose the latter, seeing it as a more viable and scalable opportunity.

Looking back, the idea evolved from combining my background in e-commerce with the opportunity presented by the family business. I didn’t have prior manufacturing or air filter experience—far from it—but that inexperience turned out to be a blessing. It forced me to question everything, from the ground up, and approach the business with a fresh perspective. We validated our approach over time, not by getting it all right from the start, but by focusing on continuous improvement and listening to what the market needed.

One of the keys to our growth has been the nature of our product—it’s consumable, which means customers need to purchase it regularly. Once a customer finds an air filter that works and fits their needs, they’re unlikely to switch providers, making reorders frequent.

Give us a step-by-step process for how you built the first version of your product.

When I first set out to build Filterbuy, the process was a lot different than what most people might imagine when creating a new product. This wasn’t a software startup; the heart of our work was in learning the manufacturing process from scratch and understanding the materials that go into making a high-quality filter. The product itself might look simple—just a frame, media, wire, glue, and a shipping box—but the reality is that each of those components has a direct impact on performance and quality. And getting those details right took some time.

Our initial steps were all about learning. I had no prior experience in manufacturing or in the air filter business, so there was a steep learning curve. I started by studying each component, working with suppliers to understand the materials, and gradually piecing together the process. Building the first version of our filter involved experimenting with different materials, testing each one until we found the quality we wanted. Costs were manageable because I did much of the work myself initially, though we invested in quality raw materials from the start, knowing that the core of our business would rely on it.

Financing was another big challenge, especially in the beginning. I used my own savings to get things going, and we were lean by necessity, putting money back into the business as we figured things out. Our business model was simple: direct-to-consumer, high-quality air filters, manufactured here in the U.S. While the model has evolved to include B2B and retail, that original commitment to quality hasn’t changed.

The biggest lesson during those early days was that manufacturing something seemingly straightforward can be anything but simple. Over time, we developed the institutional knowledge we needed, but it took a lot of trial, error, and patience to get there. In the end, it was all about persistence and attention to detail.

How did you “launch” the business?

We launched Filterbuy by first setting up on Amazon, where we fulfilled our own products, and then a few months later, we expanded with our own site, airfilterbuy.com (we eventually dropped the “air” after a few years). Early on, our focus was all about capturing existing demand with what I’d call “intent marketing”—we weren’t pushing our product out there randomly. Instead, we made sure we were available when people were actively looking to buy air filters. This strategy let us gradually roll out different sizes and products as we got the manufacturing in place to produce them.

One early tactic that really helped us scale was offering a full catalog of sizes by using a drop shipper for the ones we couldn’t make ourselves. We didn’t profit much from those items, but it let us build a customer base while we scaled up. Over time, we converted those drop-shipped customers to our own manufactured products. If I had to start over again, I don’t think I’d jump into a manufacturing business right out of the gate—in retrospect, it was pretty naive. But thankfully, I didn’t know how big of a challenge I was in for, so I went in full speed ahead without enough context to be afraid.

How did you land your first customers?

We entered an underserved market with existing demand, so we were able to attract our first customers pretty quickly. Our initial strategy was built around tapping into that demand through SEO, Google AdWords, and Amazon, which helped drive early traffic and sales. We made our first dollar within days, but I quickly learned that the real challenge wasn’t just getting customers—it was building the scale needed to make the business profitable. That took a few years to really figure out.

In those early days, I underestimated just how much volume we’d need to make the numbers work, but each sale taught me something new about the market and our customers. That initial traction gave us the momentum to keep improving, even when profitability was still a ways off.

How have you grown your business?

One of the keys to our growth has been the nature of our product—it’s consumable, which means customers need to purchase it regularly. Once a customer finds an air filter that works and fits their needs, they’re unlikely to switch providers, making reorders frequent. This was an early realization for me, and it gave us the confidence to be aggressive in our marketing efforts, particularly in the early days.

Our initial strategy centered around intent-based marketing on Google, Bing, and Amazon. We focused on capturing demand from people actively searching for air filters, then retained those customers with reliable products and excellent service.

Over the years, we’ve experimented with a wide range of marketing tactics, from radio ads to influencer partnerships and social media campaigns. While we’ve tried almost everything, our budget today is still about 85% focused on intent-based marketing. That’s where we see the strongest ROI, although we’re steadily growing our presence on Facebook, Instagram, and TikTok, as well as investing more in influencer marketing to build broader brand recognition.

In addition to our online efforts, we’ve recently expanded into retail and built out a large business-to-business sales force. Our B2B team works directly with larger institutions like hospitals, hotels, and other businesses that need reliable, high-quality air filters. We see these retail and B2B channels as key drivers of growth moving forward.

COVID also played a huge role in accelerating our growth. During the pandemic, there was an unprecedented demand for air filters, and this gave us a unique opportunity to acquire new customers at a rate we hadn’t seen before. Expanding our capacity to meet this surge was challenging, and it came with significant personal and financial costs. But that period allowed us to establish a much larger customer base, which has been a strong foundation for our business ever since.

For aspiring entrepreneurs, I’d say it’s crucial to understand your product’s purchasing cycle and build marketing strategies that capture intent and retain loyalty. Focusing on where your target audience is most likely to search for your product can make all the difference, and as your business grows, expanding into new channels and formats will keep your brand relevant.

Give us a breakdown of your revenue & financials.

Over the last 12 months, we’ve averaged around $21 million in monthly revenue. It’s been a steady climb from zero to this point over the past 12 years. We started from scratch, so the growth has been incremental and sustained, compounding year after year to build the business we have today. We’ve now served over 8 million unique customers since inception, and that number continues to grow annually.

A couple of years ago, we began broadening our scope beyond direct-to-consumer, and we’re now starting to see real traction in those additional areas. Our growth strategy includes expanding further into retail, B2B sales, and a service business, and we see these pillars as our main drivers for growth in the coming years. Currently, we’re targeting around 10% growth for 2025, and as these new areas continue to gain traction, we’re optimistic about accelerating that rate in the future.

One key to our scaling has been our vertical integration, which we realized early on was essential for the kind of growth we wanted to achieve. In fact, we’re really more in the logistics business than the air filter business. We’re selling a $3 product at an average price of $12, and while that might sound like a big margin, logistics costs actually exceed the product cost itself. That’s also what gives us our niche in the market. For anyone entering the physical products space, I’d say aiming for at least a 50% gross margin is essential to be successful, especially given the logistics costs involved.

Success is rarely an overnight thing. Be patient, and give yourself time to build the skills, network, and foundation you need to succeed. Often, success is about small steps forward each day rather than leaps.

What does the future look like?

Looking ahead, I’m confident about where we’re heading over the next 6-12 months. Our primary focus is on growing the new pillars of our business—retail, B2B sales, and services—and we’re targeting around 10% growth for 2025. We’ve built a strong foundation with our direct-to-consumer model, and now that we’re seeing traction in these additional areas, we’re putting more resources behind them. We’re also expanding our direct-to-consumer offering by adding product lines such as air purifier replacement filters and auto cabin filters. On the marketing side, we’ll continue focusing on intent-based marketing for direct sales while building brand recognition through social media and expanding our sales force for larger B2B clients.

Over the next decade, I envision Filterbuy becoming the leading indoor air quality brand, with a broad presence across retail, direct-to-consumer, and commercial channels. By deepening our vertical integration, we can maintain quality and cost efficiency while scaling effectively. Our goal is to bring “Better Air for All,” and I’m confident that we have the right strategy and team to make that goal a reality.

Through starting the business, have you learned anything particularly helpful or advantageous?

I’ve learned countless lessons along the way, but the importance of focus stands out as the key. You need a clear vision and the discipline to move a little closer to it every day. My biggest mistakes have usually come from chasing shiny objects that looked promising but ultimately took me off course. The grass almost never turns out to be greener on the other side. Choosing a focus and sticking with it is one of the best decisions I’ve made.

COVID was a major turning point that reinforced this lesson. After eight years of grinding away and building a foundation, we suddenly had an opportunity to solidify our position as demand spiked. The pandemic showed me the value of building skills over time so that when the moment arrives, you’re ready to capitalize on it. In business, success often comes to those who are prepared and willing to act when the right opportunity appears.

Another valuable habit has been learning to recognize where my strengths are most effective. I focus on areas where I can make the biggest impact and delegate the rest. This has allowed me to scale the business while staying aligned with our core goals.

Advice for other entrepreneurs who want to get started or are just starting out?

For anyone just starting out, my first piece of advice is simple: be prepared to focus intensely on a single goal. One of the biggest mistakes I see is people spreading themselves too thin, jumping between ideas or trying to be everything to everyone. True growth comes from choosing a direction, committing to it, and giving it everything you’ve got. It’s not glamorous, but consistency beats excitement over the long run.

Another key lesson is that you don’t have to know everything to get started. When I got into manufacturing, I had no experience with air filters or production, but I was willing to learn. Don’t let the fear of what you don’t know hold you back. Dive in, surround yourself with smart people, and don’t be afraid to ask questions. In my experience, the best insights often come from learning on the job and adapting as you go.

Finally, recognize that success is rarely an overnight thing. Be patient, and give yourself time to build the skills, network, and foundation you need to succeed. Often, success is about small steps forward each day rather than leaps. I’ve learned that people overestimate what they can achieve in a year but vastly underestimate what they can do in a decade. If you’re serious about your vision, commit to the journey for the long haul, and the results will follow.

Where can we go to learn more?

If you have any questions or comments, drop a comment below!

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