Cordless Products, Inc "Overview"
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Transcript of Cordless Products, Inc "Overview"
CORDLESS PRODUCTS, INC
Presented By:
David I. Lyons, Jr.
CEO
Corporate Headquarters2551 Regency Cove Court
Las Vegas, NV 89121
C: 702.524.6650
O: 702.438.4968
F: 702.731.2383
Technology CenterPeter M Blonsky, PhD., MBA/COO502 N. 37th Drive, Suite 101
Phoenix, Arizona 89009
C: 480.518.5560
O: 480.439.4968
F: 480.214.5469
ManufacturingWilliam Roquemore/VP XiaoLan Town, ZhongShan City
Guangdong Province of China
O: 86-760-2111513
F: 86.760.2111513
C: 13925350682
CPI’s Goals & Objectives
• Capitalize on the evolving nature consumers use powered products to fulfill large, niche markets.
• Historically, electrically operated devices were plugged in to use and unplugged to store. CPI’s products are plugged in for storage and unplugged for use.
• Consumers are looking for convenience and environmental stewardship
– No electric cord tethers
– “Instant on” availability
– Green and environmentally friendly
Company Commitment ………
Using recyclable and recycled products
Reducing greenhouse gasses
Protecting the planet
Preserving our resources
“Environmental Responsibility”
Competent Management Team
• Sr. Management - 85 years
• Professional & Experienced
– Business Management
– Manufacturing
– Batteries & Chargers
– China Import/Export
– Marketing/Sales
• World Recognized PhD.
BLOWER
BUDDY
Products Not Expected to Succeed
• Rotisserie - Ron Popeil - Sales to date - $1.25 Billion.
– Reason - Too Expensive, especially for infomercials
• Vacuum Cleaners - Dyson – Sales in 2007 - $1 Billion.
– Reason - Products are 2X the price of other brands.
– James Dyson staked his career on a 100-year-old household
appliance that no one complained about.
• DustBuster - Black & Decker - 1979-1989 27 million DustBusters
– $1 Billion in revenue. Current sales - 5 million units/year;
$250 million in revenue.
– 1979 Reason - No perceived need for a hand-held, cordless,
rechargeable vacuum cleaner.
– Sales accomplished without Infomercials or Internet
More Projected “Failures”
• Vacuum Cleaners - Dirt Devil – (Copied after the DustBuster)
Sales from 1999 – 2008 – 25 million sold- $750 Million in
revenue.
– Reason - DustBuster dominated the market – no room for
another.
• 1986 - Thighmaster - Suzanne Summers – sales - $100 Million
– Reason - No one will use it – cheaply made and
ineffective.
• 1975 - Pet Rock - $15 million in six months. $56 million
today.
– Reason – Obvious, It was a rock in box!!
First Product - Blower Buddy
The Blower Buddy™, Patent Pending, is a portable,
hand-held device used to generate focused streams of
air at near hurricane force (75 mph )which can be
used in a variety of home, business, military, and
recreational outdoor applications.
Future Product Blower Buddy Jr.
Desktop Model - Available 2010 - $19.95
Blower Buddy Projections
• Projected sales - First five years - 14 million
units generating almost $800 million in revenue.
• First to market position - closest competition is
canned air.
• Previously established needs of consumers.
• Infomercials and Internet Sales
• Call centers and Fulfillment houses along with
JWO manufacturing reduces the need for Brick
and Mortar facilities and inventory holding
costs.
Potential Markets
• Home
• Business
• Canned Air
• OEM
• Software Co’s
• Schools
• Military
• Government
• Camping
• Fireplace
• RV’s
• BBQ
Anything that
gathers dust
MASSIVE Customer Base
Middle class *
Environmentally conscious
Disposable income
Able to make “emotional” purchase
Over 1 Billion people worldwide areconsidered “middle class”
BLOWER BUDDY vs. “canned air”
ENERGY STAR
HIGH EFFICIENCY
Ni-MH Batteries
BIO-RECYCLED PLASTIC
NEVER RUN OUT OF AIR
NO DISPOSAL PROBLEMS
Disadvantages of “Canned Air”
…no more
Chemicals.
.
PLEASE!!!
Not canned air but canned chemicals
Harmful to Equipment, Environment and
People
Cost 8 times more than Blower Buddy
100 million cans go to landfills/year
Freezes while using
Possible explosions
Runs out of air
Storage problems
A Dramatic Use
FROM THIS……… TO THIS
IN 60 SECONDS !!
Never blow on a fire again until you get dizzy or
wave a newspaper at it.
Blower Buddy
Projections Year 1 Year 5
Units Sold 815,000 5,090,588
Gross Income $45,259,750 $283,923,967
Profit Before Interest & Taxes $19,965,448 $108,639,508
Net Profit $12,932,231 $75,006,405
Net Cash Flow $30,194,056 $78,404,663
Cash Balance $31,475,948 $241,347,693
Net Worth $14,060231 $215,579,284
Valuation $109,920,000 $658,955,000
Focused marketing and
Dominating sales strategy
Television -(Advertisements &
Infomercials)
Internet -
Direct Mailing -
Blower Buddy Accessories
For reaching in small
spaces and brushing dirt
to loosen
Financial Requirements
$11,000,000
1st Round $250,000 - Immediately for manufacturing costs of 5,000 units, etc.
2nd Round $350,000 - 30 days - for initial Infomercial and media purchase.
3rd Round $400,000 - 60 days - for media campaign, 10,000 units
4th Round $10 million - 90 to 120 days after product launch to fund mass market Infomercial implementation to dominate the consumer base
Payback of Loan
As the following table shows, with planned sales
reaching $284 million in the fifth year, we expect a
105% IRR on the initial investment.
Five years after investing $1 million, the potential
would be:
– $13,179,900 (valued interest)
– $3,293,949 (previous five years cash flow)
– $16,473,749 Total
Exit / Payback Strategy
Short term loans 3 -12 months
Payback or conversion to equity
Longer terms 2 – 5 years
Payback or conversion to equity
Convertible notes
IPO in 3-5 years
Board Representation
Timing is Crucial
CPI’s wholly owned subsidiary
China Made, Inc.
is READY for production and
needs to get started to be
ready for:
The Fall/Winter Season 2010.
Conclusion
Everything has been completed:
• Research and Development
• Potential Customer Feedback
• Actual Use of Prototypes
• Market Analysis
• Infomercial Acceptance
THE TIME IS NOW!