Financials is where we talk about how we manage our money from manufacturing our goods, pricing, etc. Other topics we talk about are the distribution of products, plans for advertisement and a small portion of marketing (more details on our marketing page).
Value proposition
We have designed our product to have an aesthetically pleasing design to appeal to those who prefer minimalist and clean designs. Our product contains multiple features that will be found effective when used properly. Along with our product that is designed with spikes which are placed in designated positions to capture hair, it comes with a specially made brush that is created to clean up the hair that is trapped within the Clean Sleeve. We will manufacture a clean design for the Clean Sleeve is also partnered with easy cleaning, as the materials and form will make for significantly effortless work.
Competitive Advantage
Our company, unlike many others, will endeavor to remain open-minded and friendly to criticism and opinions that we believe can help us grow and appeal to many consumers. Methods of purchase will be convenient to almost anyone, and we are willing to fulfill our customer’s needs to the fullest. Even though we are aware that our competitors do have similar products that are as effective, we aim to have our product even more beneficial and convenient.
Marketing Strategy
We plan to have our product distributed and sold to hardware, home improvement, and tool stores (Lowe's, The Home Depot, OSH, etc.). We will also be integrating a major portion of our profits into online sales; with the use of advertisements (ranging from 30-second commercials to online ads and printed ads) and selling the product on these stores’ sites as well as our own website (which you are on right now). We will create a website that is representing the company and the product as a seller and further information regarding the product.
Distribution Patterns
Our product will be distributed to retailers, physical or online, that specialize and sell products relating to home care. We will start off by only exporting the Clean Sleeve locally, in Southern California. When we are financially equip to do so, we will expand to the fifty United States and its territories. Over the course of 2-3 years, we will slowly begin to export to other countries in North America and the World, such as Canada, Mexico, United Kingdom, etc. if we have the expenses to do so. Each of our stores will obtain a new supply of our product every 1-2 weeks; depending on the levels of demand the specific stores receives, they could receive them less or more to help maintain a stable inventory.
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We plan to sell in the local area at first, due to it is where we are located. However, we plan to expand later on when we are able to ship to farther locations beyond.
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Positioning Statement
Our product will be able to offer a unique experience that caters to the needs of millions of households across the nation. There are similar products, but ours is designed around comfort and ease of use, whereas other products contain damaging chemicals and limited designs that make them undesirable to some customers. We aim to further contribute and advance on our product to help it be ahead of its time and to never become obsolete.
Pricing Strategy
Our aim is to have a price that will be affordable for most families, but also enough to help us create revenue based on the total costs of all other procedures (such as shipping, handling, production, employee salaries). We are aiming for a standard price without tax of $16.99 with both the sleeve and brush. Prices will go up depending on where the product is shipped to (online only).
Sales Strategy
In order to beat out our competition, and to further push the product to worldwide markets, we will be using rapid advertisements, in any form, as well as promoting the item throughout stores. As revenues begin to grow, we will attempt to get the product features on television through the use of advertisements, or paid programming shopping networks.
Revenue Streams
Through sponsorships and donations, we will be able to pay for the first production of clean sleeves. We hope to make a large profit which will used to produce more products. However, some of the profit will be used in making advertisements to attract more revenue. In the end, we hope to create a cycle of using some of our profits on advertisement which will lead to a continuous growth on revenue.
Sales Forecast
Since drains are a problem that cannot be avoided, many people have issues with their drains will buy our products. However, since our product is reusable, people will not repurchase another one for a year or two, depending on how it is treated. Although this seems like a problem, it will help us due to how people will see how durable our product is. This would give us a good reputation as it is seen through advertisements. Overall, our average sales will be continuous in growth due to how people will continue to keep their drains clean.
Milestones
With the clean sleeve, we plan to have many milestones: our first one would be getting sponsorships and partnerships from people who are interested in our product, from there we would start accepting donations, our second one release of the clean sleeve to the public, and our third will be advertisements
Assumptions
There is a market for our type of drain catchers and while those products are efficient for a good number of people, a great portion of customers that are dealing with other problems this product either created or caused. We believe that our product will help some of those issues with our uniquely designed sleeve. With the research we conducted, the people’s problems mostly source to the fact that not everyone’s hair will work with other products. Our product could be used to help people of many ranges. Even though we do not have much in our company, we strive to make any customers love our products.
Break-even Analysis
Projected Profit and Loss
Although we cannot fully predict our profits, we see it as high and continuous due to how drain problems are issues that cannot be avoided. A loss in profits may be due to how our product is reusable until a certain amount of time. However, we see this as a way to showcase how good the quality of our product is; giving us a good reputation for future investors and customers.