Management Update
Transcript: Management Update Dayton Outfitters Discovery Discovery 1 2 3 Lessons Learned Time Management Selling Techniques Pivoting: in the process right now, designing socks and hats Reached out to others and asked what they wanted to see from us, have a good list of products throughout the year Summary of lessons learned, iterations and pivots from original canvas Challenges Time management: but also we’ve learned a lot from this. It’s often difficult to find a time to meet with everyone’s busy schedule Pricing: not a big challenge but definitely one to consider, sold many but has been a deal breaker for some Our Greatest Challenges Growth Potential Working with Dorthy lane and other retailers to sell our product Working with club teams Pivoting, new products Opportunities For Growth Ahead Operations Operations Product Sourcing Googled key words (high quality crewneck, vintage, unisex) Difficult to pick when millions of crewnecks are available Ordered samples to determine quality and fit Switched distributor to Logos @ Work Quality and Service Recieved product before expected Fast communication Provided service without cash up front 179/180 units received Product Sourcing Sales Transactions Cash (50%) Venmo (49%) Credit Card (1%) Benefits 99% of our sales have had zero fees involved, allowing us to keep more profit per item Sales Transactions Updated Inventory Starting Inventory after first order: 99 Sell through Rate: 100% Updated Inventory: 0 Second Order: 80 Sell through rate: 63% Updated Inventory: 30 Updated Inventory Numbers and Metrics Cost of Goods projected our costs to include the crewneck, printing and design costs. projected transaction fees for our website and for our square reader Not incurred yet Gross Margins Largest impact was the cost of the crewneck (85%) Fairly cheap (approx. $13 per unit) crewneck, soft and comfortable fit Gross profit margin greater than 50% has to do a lot with the low cost of the crewneck Cost of Goods and Profit Margins Sales Sales Sales activity in the last month: -55 total sales -tables hours in front of KU (3hours) and in Miriam (6 hours) -Dorm storm Marycrest Channels being used: -Tables hours -Dorm storm -Direct -Plan to use email and increase online/social media presence Issues: -One customer never paid -Table hours are very hit or miss -Could have gone with less smalls and more Larges or XLs Financials Financials Financial Health Balance Sheet Items Cash-$4015.36 (Revenue) + $5000 (Loan) - 2498.74 (Total Expenses) = $6,516.62 Inventory: 30 Sweatshirts ($900 of potential revenue) Short-term loan (Liability): $5000 Key Metrics (Continued From Previous Presentation) Sales-164 units sold Projected Gross Profit-$5000-$2415.12 = $2584.88 Projected Profit-$5000-$2415.12-$83.11 = $2,501.77 Cash-$4015.36 (Revenue) + $5000 (Loan) - 2498.74 (Total Expenses) = $6,516.62 Direct to Consumer goods sold per hour -90 units sold divided by 10 hours = 9 Sweatshirts per hour ($270 in revenue per hour) Revenue Per Week = $4015.36 divided by 6.5 weeks = $617.74 in revenue per week Overall, we have been very satisfied with our performance as a business Since our last presentation, we have increased our key metrics and have been able to achieve higher weekly sales We expect to finish strong with these crewneck sweatshirts as we begin to transition into a new product in the coming weeks Performance At this point we have spent six and a half weeks selling and we have sold about 150 sweatshirts. We currently sit at $4015.36 in revenue with $1600.24 in profit and about 30 sweatshirts left to sell. With this many sweatshirts left to sell we expect just under $1000 more in revenue. Our future, however, will be moving in a different direction. We are currently working on bringing a custom winter beanie to market and have a selection of other products lined up for the future. Until we order a set amount, it will be hard to say exactly how much we expect from these future products, but we hope to achieve the same success that has been seen with these crewnecks. Sales Forecast and Future Growth Promotions Promotion Past & Current Promotions Past & Current Promotions Sales Promotion: BOGO (buy one get one) 2 for $50 special events spark sales Social Media: Company website Instagram Facebook spread awarness through the internet electric word of mouth Product Placement: Frequently wearing our product familiarize people with the look of our products $$ spent $$ spent AMOUNT: ZERO Future Promotions Future Promotions Sales Promotion: Customer Loyalty Promotion after the nth purchashe, the customer will recieve a coupon for their next purchase to strengthen costumer relations Flash Sale: discounted price for a short time to create urgency, rush, and an increase in sales Direct Marketing: Mailing/handing out flyers Sidewalk Chalk ADs displayed in KU to make brand more well known
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