Distribution of Care-Produkts for Tattoos Heiko Gresens / Sybille Blaukat Schwabenstr. 5 91126 Schwabach Tel: 0151 – 723 07 005 Mail: [email protected] [email protected] Tattoo-Care Distribution Seite 1 1. Qualifications of the founders Sybille Blaukat 2001 bis 2003 work as employed sales person (field) at Müller-Verlag Nürnberg (Das Telefonbuch, Gelbe Seiten, Das Örtliche) and there active sales "learned" 2003 to 2010 field for pharmacies exclusive cosmetics, with the requirement to visit 10 clients per day. Responsibilities were independent organization, implementation and Speaker of trainings for pharmacies, independent selection and tour the area 2010-2014 Sales Associate in the field of dental practices and laboratories with consumables 2014 sales representative in the packaging industry, responsible for Germany/Austria/ Switzerl Heiko Gresens 1991 bis 2000 service and sales staff (gold teeth) for Degussa in the area northern Bavaria 2001-2005 Product Manager for dental equipment, department head of hardware, consumables and ceramics for Wegold 2005-2007 medical advisor for Wieland precious metals. The sales activities each with the default 8 to 10 dental labs per day to visit 2007-2009 Product and Project Manager for Wieland Precious Metals 2009 until today - an independent sales representatives throughout Germany in the field of tattoo studios, pharmacies and dental. 2014/2015 - Market Research in tattoo studios on its own in Hamburg, Nuremberg, Fuerth, Regensburg, Passau. Visit of a total of 200 Tattoo Studios, about 10-15 per day. In interviewing with the studio owners, 12 of 15 tattoo artists are very pleased from the idea of regular visits and care. Tattoo-Care Distribution Seite 2 2. Business Idea Because of our experience in sales and first contacts in the industry, we came up with the idea for the distribution of care products for tattoos. Actual market situation: There are round about 8.000 tattoo Studios in hold germany. The tattoo artists have no control of the skin care. These care is important for the tattoo colour and for the skin. Usually tattoo artists sent their customers to drugstores or supermarket to by anthing. With this concept of tattoo products the tattoo artist several effects will be achieved: 1. the tattoo artist deserves with the products he sold directly to the customer, perceived as a professional person of trust, both in advance the tattoo as well as sustainable, 2. the costumers will reconize him as professional and person of trust 3. the customers are convined tu buy the product regular 4. through word of mouth advertising the tattoo artist is recommended (satisfaction=Recommendation) and reaches more customers than before 5. by regular visits from the field to the tattoo artists will always be aware of their consumption and purchases. As a result, he has permanent additional revenue. 6.Overall the artist will recognized us as and to end responsible person of trust. As customers, we define just tattoo studios, the wholesale sidelined (price war). With our employed sales persons (field) we stand out from the market and will have a unique selling point. The manufacture and packaging of the products coming from a single supplier and are supplied as a salable commodity. All products are approved for us and certified as follows: - safety assessment, bioburden testing for all products a total of 7 weeks - Dermatest in German and English - Developing product samples and shipping at 2 Institute - Sunscreen test (for sun-block-tattoo) Notification and Registration in Brussels - performing a patch test data for all products for the label "dermatologically tested". The shipment will be from stocks Schwabach, or direct sales (only Displays) from the local employed sales person (field). Tattoo-Care Distribution Seite 3 3. Products 2.1 tattoo before care – prep-tattoo Tube, 100ml - for pretreatment the skin, apply at least 10 days before the tattoo. The skin becomes more receptive to ink, finer lines and motifs can be seen better, less blur and skin is less sensitive to pain. Sales in scheduling / deposit for the planned tattoo. 2.2 Tattoo Cleansing Gel – wash-tattoo Tube, 100ml - for cleaning the fresh tattoos, ph-neutral and allergy tested. In order to keep the tattoo in color and form longer "fresh" cleaning in any case BEFORE the care is advised. Due to the pH-neutral composition healing is promoted and protects the skin. Sale AFTER the tattoo / final payment. 2.3 tattoo after product – care-tattoo Tube, 100ml – for the care of the tattoo, intended for use both after tattooing and long term. To promote the healing of the tattoo, cooling and moisturizing. Important for the conservation of color effects. Sale AFTER the tattoo / final payment. 2.4 Sun Care Product – sun-block-tattoo Stick 75g – for the care of tattoos with sun baths (holidays, sports, outdoor activities) Pinpoint application in sports / activities / holiday in the sun. In addition used to the previously sunscreen with SPF. 2.5 secondary product - Shea Butter – Shea-care-tattoo Crucible, 250g – for total personal care, especially for dry skin. Rich body care for dry and stressed skin with a pleasant fragrance. 2.6 secondary product - Vaseline – skin-softener-tattoo Pump dispenser, 1000ml – apply for the tattoo artist during the tattooing. Range completion, thus the tattoo artist has all care products under one roof. 2.7 secondary product - analgesic ointment – low-pain-tattoo Tube, 100-150ml – the application for the tattoo artist in front of the tattoo. NEW DEVELOPMENT and complete assortment, purely vegetable and WITHOUT Lidocain. Within the scheduling the customer will be advised of painless application with additional cost. Tattoo-Care Distribution Seite 4 3.8 marketability of the products The packaging – in this particular case – the tubes come from packaging manufacturers. Everything else, like - sticks for sun-blocker, producing the bulk, filling the products, dermatological tests, CE certification, registration of products in Brussels and their approval – from the bottler. The plan is 30.000 tubes of varieties prep tattoo, wash tattoo, tattoo care and sun- block tattoo to start with. This amount is sufficient for the first 3 month. With respect to the flow – Packaging Manufacturing, Bulk, all certifications, search of employees – a time window of 3-4 months is required. Post production / repeat orders have a lead time of about 2-4 weeks. 3.9 Distribution of Products Distribution is planned exclusiv direct. Calculated with 8 or 10 regions across Germany, each region an employed sales person. Each field gets 600 potential contacts assigned, this needs to be convert into 480 active customers. The frequency of visits will be 12 weeks, with an average of 8 costumers per day. With this approach, we reach 50% (with 8 field staff) and 60% (with 10 field staff) of approximately 8.000 studios throughout Germany. There are - in addition to the regular visit Cycle - seasonal sales promotions, posters and flyers available to promote the sale. 4. Competitive situation Currently there are 4 companies with tattoo care on the market: 1) Tattoomed - 4 products - after tattoo, cleansing gel, color protection, Daily care UV Declares as a medical skin care. Sales are made exclusively via their own online store and wholesale. For this reason, the order is often forgotten by the tattoo artist - thus the customer is sent to the pharmacy / drugstore and the tattoo artist deserves (again) no money. 2) Tattoo Protect - 3 products - Tattoo Healing, Tattoo refresh; Tattoo Protect The sale takes place exclusively at fairs and on its own website. The products are all very rich (lots of fat and oil -for combination skin rather unsuitable). On demand my hand at various tattoo studios these creams are rather unknown. 3) Pegasus - 2 products sort - Pegasus Tattoo Cream with cajuput, PegeaPanthenol Both products are available in different sizes, especially 25ml tubes. Sales are made primarily through wholesale and their few commercial representatives. 4) Ease Grease Tattoo Balm - Balm “One for three” Application before, during and after the tattoo. Rich, from fruit butters compiled care sales also only through wholesalers. A product for everything - since the end of 2014 new on the market. Satisfaction and demand are still pending; first - researched by us - reactions of the tattoo artists: no acceptance by tattoo artists All listed products are priced about our planned price or at the same price. Tattoo-Care Distribution Seite 5 5. Cost / benefit – Calculation In the calculation you will find below, the cost are from a use of 8 employed sales persons in field. In the first 4 weeks the Purchase price is higher then the price of reorder. When the first reordering is done, falling costs for things like Admission, dermatological tests and the necessary for obtaining the market completely gone. In the following tables there are numbers to: a) Calculation – Comparison of first order / reorder b) staff costs – one time cost and cost per month, calculated for the first 6 months c) benefits through direct sales on the first visit to the studio d) benefits through direct sales in the second and all subsequent visits, e) Profit calculation for the tattoo studios (for submission to visit in the studio) f) Breakdown of costs for the first 6 months g) drawing up profit / loss for the first 12 months An explanation of the points a) to g): 5.a) Calculation -confrontation first appointment / re-order Calculation is based on the offers of the tube manufacturer and bottler. As mentioned at the beginning, placed on the market to start each of the 30.000 products varieties prep-tattoo, wash-tattoo, tattoo-care and sun-block-tattoo.. The prices for this are already available and are listed separately in the table. These were calculated on the price of each product. Both for the initial order and the aftermarket. The cost of producing the first batch include the following items: production and printing of the required tubes manufacture of bulk (tattoo care, etc.) Filling the tubes Implementation of resistance tests Dermatological tests CE certifications Application for the products in Brussels and admitted. Retail prices for the tattoo studios are on the average. The studio gets, when purchasing the products, always 40% discount. 5.b) ) staff costs – one time cost and cost per month, calculated for the first 6 months The issues we have calculated cost-saving. These include: field service vehicles (used cars, max. 1 year old ) as company capital book flat rates in mobile phones buy an online sales program, used by field every day each AD is equipped with a laptop and an mobile phone the cost for car insurance, tax etc are an estimated average as is the healthy insurance, payroll taxes, etc This results in a total amount of current and non-recurring costs. Tattoo-Care Distribution Seite 6 5.c) benefit trough the direct sale on the first visit to the studio for For the first visit we have planned that day per AD 8 HV displays are sold. This corresponds to 160 Studios each field per month and 480 Studios in 3 months. In the table finds the margin per display, with a placement of 6 products per variety (preptattoo, wash-tattoo, tattoo-care and sun-block-tattoo). The whole extrapolated to 20 working days per month. Each field gets 480 displays and will this have in the car. This saves transportation costs and time. The field refers to the sale, can confirm this from the studio and the invoice is sent from the office. The tattoo artist can immediately start selling. 5.d) benefits through direct sales in the second and all subsequent visits This table is used to calculate the revenue once all displays are sold and the studio ordered. Were counted again 8 visits per day per field. We expected the sale to the final consumer of 1 product per type per Studio (minimal acceptance) within one month (20 work days). In addition the revenue for 2 consumer per day per studio. 5.e) Profit calculation for the tattoo Studios This table is used mainly to make the tattoo attention to his win. Instead - as before - to send the customer to the supermarket or drugstore. For this, the planned purchase and sales prices and the margin are set out for the studio. Since the studios are occupied different (up to 4 artist per tattoo studio), we came out with our calculation of end users per day. The result is multiplied with active recommenders, more tattoo artists or more than 2 end user per day. 5.f) Breakdown of costs for the first 6 months Here all the costs for the first 6 months are based on the tables previously enumerated. Compared from 8 to 10 sales representatives. 5.g) drawing up profit / loss for the first 12 months Due to the above previous calculations we find here the preparation, starting from when profits are made. This gives the basis for the repayment to the investor. Tattoo-Care Distribution Seite 7
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