E-liquid Manufacturing company open for investors
Start Your Own Biz / Posted 4 months ago / 134 views
The Industry :
Forecast in the next five (5) years says that market is worth $61 Billion in the industry. Last year was $8 Billion and it’s substantial and growing. Big Tobacco players are starting to join the industry as well because of its potential profit.
Our company is base in Philippines and we are in the vape industry for three (3) years now. We produce e-liquids and as of the moment we have we have 9 flavors, 6 out of 9 flavors are really competing in the market and the 3 are special flavors that we make around 300-400 per month. We are a small manufacturing company that has 3 employees, but working with these 3 people feels like an army. 2018 is the highlight of our company, demands tripled this year. Vape industry took spot on the market when it was first commercialized last 2002. Since then, more and more vape shop opened and now an estimated 20 million people worldwide uses vape or e-cigarette products.
⦁ As the vape industry is continously growing and base on the forecast that in 5 years time, the vape industry will be worth $61 Billion. We want to take advantage of that by expanding the business and to penetrate the market to stay in loop and to continue producing quality e-liquids.
⦁ We have a very simple objective “Become a well-established e-liquid manufacturer and innovate to make profit” . All companies wanted to have a good future and we are one of those. Financial Stability is one of the many problems company faces. Our financial objective is very simple and we believe that this 4 factors listed, are the key to become better as a manufacturer and as a salesperson by trusting the product itself, that product is “PASSION, QUALITY and INNOVATION”. We want to become financially stable debt free company, to help those who wanted to venture the industry.
Here in the Philippines, there are more than 50+ companies producing e-liquids and 10-15 of them is known and well-funded or has more financial freedom. Our company have established a good network and have more than 100+ partnered shops nationwide. We also have international distributors in KSA, USA and Canada, and we want to be known internationally as well because our products has 99% market potential. Innovation is what distinguished us from others that’s why we have more than 100+ prototypes that is ready for nationwide distribution, and we can say that all of those are original formula manufactured by us.
Specifications : OUR KEY FACTORS
PROSPECTS – we are happy that we get repeat orders and people keep buying our products, this alone can help us get profit. To be known we don’t just stop there, we still continue to advertise our product to all shop owner either international or local market.
UPSELLING – Now that they purchase our product/s, we don’t just offer what’s the best flavor we have. We offer them everything from products until service. Anything that we could offer that benefits the company.
MAKING THEM BELIEVE – People already knew that your current products are great but what if another product comes in? We make them believe that we always produce best e-liquids that even a new brand under our manufacturing they will not hesitate to buy it. That’s what we are known for, it’s the main ingredients of our company.
PRICING – If we offer quality the pricing should be justifiable as well. Either the supplies goes up or down, we have a leverage in order to gain profit. The strategy is to maintain and level up, let them know that they are paying for the most quality brand of e-liquids.
⦁ Achieved and Documented
– 41% – Profit margin of Orchard Blends (February 2018-April 2018)
– Demands tripled this year plus 100+ partners nationwide means profit
– Pre-orders and repeat orders jumped from 25%-65% means profit
We just established “Orchard Blends” as the manufacturing name this year. We already produced 4 other brands before Orchard Blends was mass produced. Brands under us are “Probinsyano E-Liquids”, which was also a hit in year 2016. “Piñeros Drops” which is a collaboration e-juice with another juicemaker who owns “King’s Cloud”. Orchard E-liquids which was the original concept of what we called “Orchard Blends” now. The newest E-liquids that we released is “South Drips”. The pictures of the juices will be shown on the page
As of the moment we have our Official Facebook page : www.facebook.com/Orchardblends/
We are looking forward in having our own website and doing that we need to rely on the profit. Hiring someone to make a website is a little bit expensive but it’s needed especially now that we are targeting international market.
As of the moment, while writing this proposal, believe or not we are stilll getting pre-orders. An estimated total pre-orders are around 2000 pcs only for this month
We plan to have all the best flavors under one brand and will add two more new flavors which is also part of the project. Listed below are the flavors that we decided base on the previous demands when it was produced.
⦁ Pan De Keso – from Promdi line, one the best and even until now people are looking for it.
⦁ Chilled Guava – from South Drips
⦁ Bluer Beri Frap – new Proto (tested with 95% positive feedback)
⦁ Avory 4 – best prototype and the only flavor in the country
⦁ Canta Juice – one of the positive reviews from our prototypes
⦁ Strawberry Graham – the star and the most demands among all the flavors we produced
This can change and we will let you know what flavor replaces it. So far, this is the final line up that we want to mass produce and we are confident that we can more profit with this idea of putting them together under 1 brand.
PROPOSED FUND AND TERMS:
Php 622,600 – $11,673
Forex Rate : $1.00 – Php 53.42 (July 7, 2018)
Where to spend it
1. Company’s debt——————————————— Php 117,700
2. Renewal of Permits (Annual)————————— Php 25,000
3. Lab (Once-off Payment Move)————————– Php 30,000
4. Lab (New Equipments)———————————— Php 80,000
5.Production Cost ——————————————— Php 369,900
TOTAL Php 622,600
Guides : P79.99 / bottle
– (1 Liter) 1000 ML = 16pcs 60 ML
– Php 4,000 – P6,000 / Liter Concentrates
– Php 3,000 – P3,500 / Nicotine
– Php 2,000 / VG Carbouy (1 Carbuoy – 21 Liters)
– Php 2,500 / PG Cabouy (1 Carbuoy – 21 Liters)
PROJECTED PROFITS :
LIABILITIES : Php 252,700 (Permits,Labs,Debts)
PRODUCTS COGS : Php 369,900 (Cons,Botts,Labels ONLY)
TOTAL FUND NEEDED : Php 622,600 – $11,673
FUND COMPUTATION AND USES
Actual COG per bottle : Php 61.65 per bottle
TARGET RSP : Php 135 per bottle
Target Production : 1000 per flavor = 6000 Total
Supply / Demand Prod : 6000 pcs – Estimated 3 months supply
Gross Profit (computation) : Target RSP * Target Production
: Php 135.00 * 6000
Gross Revenue / Gross Prod : Php 810,000 GROSS PROFIT (BASIS OF COMPUTATION)
Gross Revenue / Gross Prod : Php 810,000 (QUARTERLY)
(less) LIABILITIES (Once-Off) : Php 252,700 (Once-Off) OR (Monthly)
NET INCOME FIRST QTR : Php 557,300 (DEBT – 1ST QUARTER ONLY)
2ND QUARTER : Php 440,100 (PROD-FUND RECYCLED)
3ND QUARTER : Php 440,100 (PROD-FUND RECYCLED)
4ND QUARTER : Php 440,100 (PROD-FUND RECYCLED)
ANNUAL PROFIT : Php 1,877,600 – $35,194.66
30%-40% = ROI
Sales Strategy :
A. DIRECT SALES INCOME : PARTNERED SHOPS (P135 RSP-40 MOQ)
B. SALES STRATEGY: REGIONAL AND AREA DISTRIBUTORS (P95 RSP – 100/400 MOQ)
C. OEM – Manufacture E-liquids for other company or brands
What’s in it for you (Investor/Partner)
The fund that we are seeking is small compared to other companies who seeks funding. We try to save money as much as possible and only produce what we think is enough. Why? Innovation is the core of the company, to produce more unique products in the future and do not dwell much on expenses, we keep it as low as possible but the cash flow is consistent. With this fund you are not only helping both of us in terms of PROFITS. We help the lives of people by providing them the best e-liquid in the market.
Base on the computation we showed, it’s almost 50%+ ROI but much better if we get higher ROI percentage which we can pretty soon. For more forecast about the industry, I included links below.
From the buttom of our hearts. We would like to thank you now, for reading our proposal and the ideas or opinions you’ll share to us to become a better and well-establish company.
Thank you and we can’t wait to hear from you.