The Idea
Products & Services
We operate in the consumer goods market and sell kitchen gadgets to retailers exclusively through distributors. This gives us very low running costs. Our first product Sinkstation was launched 24 months ago by our UK distributor at the NEC Spring Fair. We have achieved store listings with most of the important retailers in the UK, (including Sainsbury's, Lakeland, John Lewis, Steamer Trading and many more) - We have won prominent industry awards ahead of established competitors and already achieved sales of more than 150,000 pcs with early stage revenues of over £350,000 at 52% gross profit margins. More importantly, we have added 11 further overseas distributors covering over 30 countries.
Problem Solved
The business is about multiple products not one big idea. There is still an enormous retail opportunity here. As customers queue to pay for their purchases they will often make impulse purchases of 'cool' looking gadgets selling for under £10 that are displayed near or at the till. These products in particular are inexpensive to produce, ship, store and display and very profitable. It is a fascinating bit of the market but innovation is key. This innovation is where our core team excel.
Revenue Model
We design and make new kitchen gadgets then sell them to distributors in bulk. The distributors are then responsible for their onward sale to retailers. Gross profits are 40-60%. Ongoing NET profit margins are about 20% of revenue.
Each product costs approx £15,000 to complete and will generate £30,000 to £300,000 a year in sales. Our current item achieves £140,000 a year and we have 7 new items for 2015 that we are currently making (hence listed losses)
Growth is achieved through a growing product range. We have 60 items planned initially. The business goes into profit the year after next (2016) when we have completed our core range of about 20 items from investment cash.
Exit Strategy
You have to log in or register to see this information.
