| Month number |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
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Roll-Out |
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| INCOME: |
| SALES ASSUMPTIONS: 30% of sales Home & Away @ $89.95; 50% Butty System @ $59.95; and 20% For Ladies Only at $39.95 |
| Beginning in month six, 1,800 units are sold each month. Average cost for componants and assembly = $9.17 ea. Average selling price $65.56 |
| * DIRECT TV MARKETING |
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| For every $1,000 spent in direct marketing on TV, $3,500 in sales results (MARKETING COST = 28.6%) |
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| SALES FROM DIRECT MARKETING ON TV |
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52,500 |
105,000 |
105,000 |
105,000 |
105,000 |
105,000 |
105,000 |
105,000 |
| $30,000 per month in TV advertising brings in 1615 net sales at avg price of $65.00 each sale. |
| Cost allocation per sale: Product $9.00, Credit card $2.00, In-bound call center $4.50, TV Time $14.00 = |
| $35.50 gross profit per sale (product,advertising & sales costs). |
| WEB SITE MARKETING |
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| $5,000 On Line web site marketing and management expected to return approx 150 sales at avg $65.00 |
| SALES FROM WEB SITE ORDERS (A): |
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9,750 |
9,750 |
9,750 |
9,750 |
9,750 |
9,750 |
9,750 |
9,750 |
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| PRINT MEDIA PLACEMENT** |
| $1,500 per month in Niche Market print ads expected to return 50 sales per month |
| SALES FROM PRINT ADS |
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3,250 |
3,250 |
3,250 |
3,250 |
3,250 |
3,250 |
3,250 |
3,250 |
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| GROSS MONTHLY SALES: |
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65,500 |
118,000 |
118,000 |
118,000 |
118,000 |
118,000 |
118,000 |
118,000 |
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| Monthly Gross <Deficit> Profit |
<35,070> |
<29,000> |
<54,500> |
<40,300> |
<14,600> |
33,700 |
34,700 |
34,700 |
34,700 |
34,700 |
34,700 |
34,700 |
| Cumulative Net Deficit |
35,070 |
64,070 |
118,570 |
158,870 |
173,470 |
139,770 |
105,070 |
70,370 |
35,670 |
970 |
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| Cumulative Before Tax Profit |
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33,730 |
68,430 |
| Amount Avail for Distribution to Investors |
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33,700 |
34,700 |
34,700 |
34,700 |
34,700 |
970 |
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| Cumulative Total Distrubution to Investors |
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33,700 |
68,400 |
103,100 |
137,800 |
172,500 |
173,470 |
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NOTE: If Home & Away sold for $79.95 instead of $89.95, reduce 540 sales (each month) by $10.00 or total of $5,400 from monthly gross
pofits, adding about 1 month more to break-even point on Cumulative Gross Profit line. In which case repayment to investors
would be over 7 months.
If all or part of projected month five's $65,500 income is delayed or extended into month 6, investment requirement could equal as much as $239,000 thereby making repayment to investors estimated to be long as 7 or 8 months (instead of 6 or 7 months).
If all or part of the projected month five's $65,500 income is delayed or extented into month 6, investment
requirement could equal as much as $239,000