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Hello and thank you for taking the time to look over my proposal.
My company, BabyFaces.com Inc., makes 3-D silver and gold charms. Until now I have focused on the kids and pets market, with some success. My average sales per year are $55,000 over the last three years. I have found a new market in the memorial keepsake business. I have developed two additional product lines in that area as well. The money I need to get my product line into 500 funeral homes over the next six months is $51,429.
I have recently launched the memorial side of the BabyFaces company. It's called ForeverLoved.com. I have a tentative agreement with a funeral accessories company which has 6000 funeral homes in it's customer base. I am working to get my expanded product line into their network of homes. My plan is to add our product line to 500 of their top homes. I have spent much of the last eight months developing a pendant urn that includes one of our charms as well as being able to customize it without adding to the price. The urns are in the final process of development and should be ready to begin selling late this month. Also, we've added a new line called ThumbTags late last year, which are direct competition to the industry leader in fingerprint jewelry, Thumbies.
That's the background. Here's the plan.
I need funding to get this product line into at least 500 funeral homes in the first six months. The cost associated in doing that are as follows.
Displays (90-day lead time) will be made by my jewelry box manufacturer in China. I have been very pleased with his work over the last five years. 500 displays at $9 each comes to $4500.
Two sterling silver charms, one junior and one original, per display at a cost of $12.50 each for the junior and $16 each for the original comes to $14250.
The cost for shipping the finished display would be $4.95 each or $2475 total.
Printing costs for new brochures. We will need a minimum of 100 per display or 50,000 total. These will be six pages each and the cost for printing is $5789 and $915 for shipping.
The two biggest trade shows in the funeral industry are the NFDA and the ICCFA. attending both would be imperative. We have a trade show booth, but would need to create new graphics for the shows at a cost of $1500 for the graphics and $6000 for each show. That totals $13,500
Last but not least is advertising. I estimate $10,000 over the course of the next year for promoting the product in trade magazines to attract additional funeral homes.
All that comes to $51429.
The current average sale is $145 retail and $72 wholesale with a net profit of $55.27 per sale. IF, and yes that is a big if, each funeral home follows my sales plan and completes three transactions per month, the net profit would be $82,905 per month. If we follow the 80-20 rule in retail sales then that number would still be a healthy $16581 in net profit each month.
Your exit plan. After the initial six-month setup period, you will receive 33 percent of the net profit each month until your initial investment is paid. After that you will receive seven percent of the monthly net profit for two additional years. At the low end of the estimated sales you should look at nearly $27,000 net over the two years or $83,500 with an average of three sales per home. If all 500 homes embrace our sales program, and we will work closely with them all to do that, then the sky's the limit on the potential earnings.
Contact me at if you have an interest.
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