22
CORDLESS PRODUCTS, INC Presented By: David I. Lyons, Jr. CEO Corporate Headquarters 2551 Regency Cove Court Las Vegas, NV 89121 C: 702.524.6650 O: 702.438.4968 F: 702.731.2383 Technology Center Peter M Blonsky, PhD., MBA/COO 502 N. 37th Drive, Suite 101 Phoenix, Arizona 89009 C: 480.518.5560 O: 480.439.4968 F: 480.214.5469 Manufacturing William Roquemore/VP XiaoLan Town, ZhongShan City Guangdong Province of China O: 86-760-2111513 F: 86.760.2111513 C: 13925350682

Cordless Products, Inc "Overview"

Embed Size (px)

DESCRIPTION

A quick look at what we are hoping to launch very soon!!

Citation preview

Page 1: 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

Page 2: Cordless Products, Inc "Overview"

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

Page 3: Cordless Products, Inc "Overview"

Company Commitment ………

Using recyclable and recycled products

Reducing greenhouse gasses

Protecting the planet

Preserving our resources

“Environmental Responsibility”

Page 4: Cordless Products, Inc "Overview"

Competent Management Team

• Sr. Management - 85 years

• Professional & Experienced

– Business Management

– Manufacturing

– Batteries & Chargers

– China Import/Export

– Marketing/Sales

• World Recognized PhD.

BLOWER

BUDDY

Page 5: Cordless Products, Inc "Overview"

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

Page 6: Cordless Products, Inc "Overview"

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!!

Page 7: Cordless Products, Inc "Overview"

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.

Page 8: Cordless Products, Inc "Overview"

Future Product Blower Buddy Jr.

Desktop Model - Available 2010 - $19.95

Page 9: Cordless Products, Inc "Overview"

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.

Page 10: Cordless Products, Inc "Overview"

Potential Markets

• Home

• Business

• Canned Air

• OEM

• Software Co’s

• Schools

• Military

• Government

• Camping

• Fireplace

• RV’s

• BBQ

Anything that

gathers dust

Page 11: Cordless Products, Inc "Overview"

MASSIVE Customer Base

Middle class *

Environmentally conscious

Disposable income

Able to make “emotional” purchase

Over 1 Billion people worldwide areconsidered “middle class”

Page 12: Cordless Products, Inc "Overview"

BLOWER BUDDY vs. “canned air”

ENERGY STAR

HIGH EFFICIENCY

Ni-MH Batteries

BIO-RECYCLED PLASTIC

NEVER RUN OUT OF AIR

NO DISPOSAL PROBLEMS

Page 13: Cordless Products, Inc "Overview"

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

Page 14: Cordless Products, Inc "Overview"

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.

Page 15: Cordless Products, Inc "Overview"

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

Page 16: Cordless Products, Inc "Overview"

Focused marketing and

Dominating sales strategy

Television -(Advertisements &

Infomercials)

Internet -

Direct Mailing -

Page 17: Cordless Products, Inc "Overview"

Blower Buddy Accessories

For reaching in small

spaces and brushing dirt

to loosen

Page 18: Cordless Products, Inc "Overview"

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

Page 19: Cordless Products, Inc "Overview"

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

Page 20: Cordless Products, Inc "Overview"

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

Page 21: Cordless Products, Inc "Overview"

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.

Page 22: Cordless Products, Inc "Overview"

Conclusion

Everything has been completed:

• Research and Development

• Potential Customer Feedback

• Actual Use of Prototypes

• Market Analysis

• Infomercial Acceptance

THE TIME IS NOW!