Welcome. Management & Personnel Elizabeth O’Kane, Marketing Analyst, Lead Developer, & Co-founder.

Welcome

Management & Personnel

Elizabeth O’Kane, Marketing Analyst, Lead Developer, & Co-founder

Management & Personnel

Jennifer Ortiz,Industry and Competitive Analyst, & Co-founder

Management & Personnel

Gustavo Jimenez, Market Analyst and Director of Sales, & Co-founder

Management & Personnel

Fernando Garcia, Financial Analyst & Co-founder

Management & Personnel

Thalia Marroquin, Human Resources Analyst & Co-founder

Mission Statement

BADASS DRINK MAKING MACHINE THAT MAXIMIZES EFFICENCY, PRODUCES REVENUE, AND ENSURES CUSTOMER SATISFACTION. ENJOY LIFE, CREATE MEMORIES AND HAVE THE PERFECT DRINK EVERYTIME.

Concept“Coca Cola Freestyle machine for adult beverages.”

TOUCH SCREEN

3 MAIN SPOUTS

POUR MAT/DRAIN

Concept

• THREE ¼” TUBING• LIQUOR• JUICE/SODA• LIQUEUR

ConceptINCLUDES WELL LIQUORS/LIQUEURS1. SCOTCH WISKEY2. BOURBON WHISKEY 3. TEQUILA4. RUM5. GIN6. VODKA7. TRIPLE SEC8. SWEET & SOUR9. PEACH SCHNAPPS 10. BLUE CURACOA

NOTE: EVERY ALCOHOL IS INTERCHANGABLE. ITS UP TO TE BAR TO DECIDE WHAT TO SERVE

SPECIALLY DESIGNED CONTAINERS HOLD THE LIQUOR OR LIQUEUR

Concept¼” TUBING

¼” TUBING FROM LIQUOR OR LIQUEUR

3 PRIMARY SPOUTS

MAIN CONTROL

COMPRESSEDAIR CONTAINERS(CLEARS PRIMARY SPOUTS)

Industry

Industry

Industry

Competition

Market Analysis

• Target Market• Size• Alcohol Consumption• Costs• Profit Margins

• Perfect Pour Benefits• Marketing Plan

Bar/Night Club Market

• The market is in its mature stage• Heavy competition and low

barriers to entry• 80.0% of bars and taverns fail

financially within the first five years

• Costs are a big part in determining future success

• Bars and Nightclubs will want the Perfect Pour

Bar/Night Club Market

• It is a $22.7 billion dollar industry that had growth of -0.7% from 2007-2012 due to the recession

• Grow at a rate of 2.5% from 2012 to 2017• Most alcohol drinkers between age of 18 to 25

Alcohol Drink Consumption

Figure 1. Products and services segmentation (2012). Adapted from “IBISWorld Industry Report 72241: Bars and Nightclubs in the US,” by N. Samadi, 2012, IBISWorld, p. 13.

Alcohol Drink Consumption

• The average price drinks can range from $4-$10 with specialty drinks using high-end liquor can go as high as $20.

Profit Margins

Table 1. Typical Income Statement for Bars and Nightclubs. Adapted from “Bars and Nightclubs,” 2012, First Research, p. 13.

Implementing Beverage Monitoring Systems

• About 25% of inventory loss is due to bartenders over pouring. • Computerized beverage monitoring systems can track alcohol

usage and reconcile consumption data • Perfect Pour incorporates these technologies and more in order to

provide efficiency and bottom line profits to the bar.

Costs of Over Pouring

• If your bar pours a 1 ½ ounce shot, you should get 22 drinks out of a one liter bottle.

• Over pouring by 1/8 of an ounce translates into $96 per case.

• If your bar staff over-pour by ½ ounce you're losing as much as $252 per case.

• Free Drinks

Benefits• Allows mixed drinks to be poured

in perfect proportions consistently• Allows better tracking of inventory

through technology• Tracks which drinks are most

popular so you know what people want

• Eliminates over pours, which will dramatically improve profits.

Market

• The market for the Perfect Pour will most likely be bars and nightclubs that drive a lot of traffic

• Speed is also important for them because the more drinks they sell, the more profits they can potentially bring in.

• This fast paced environment make errors like over pouring, or opportunities for theft, to occur easily.

Marketing Plan

• Targeting bars and nightclubs in populated cities– San Francisco– Los Angeles– Miami– Las Vegas

Nightclub, Convention &

Show Trade• March 24-26 2014• “Bringing together 37,000+ industry

professionals in the entertainment capital of the world—Las Vegas—this must-attend event is for professionals in the bar, nightclub, beverage and hospitality industry.”

Online Advertising

• Nightclub.com– One of the most actively viewed nightclub and

bar website– Have information on bar and nightclub

management– Appropriate place for us to try and promote

Perfect Pour

Social Media

• Social Media is free• Can reach large customer base for free• May not be as effective at the beginning

since Perfect Pour is not known• Facebook• Twitter

Costs

• Initial estimated Cost:

• This includes:– Patents– Equipment – Materials – Manufacturing Space

$335,750

Costs Explained

• Marketing – 5% of sales

• Vary between $10,000 - $30,000 per year.

• Property:– $3,250 per month.

• $39,000 per year.

• Utilities: – $12,500 per month.

• $150,000 per year.

• Patent Cost: $20,000– It lasts 14 years.

• $1,428.57 per year.

Costs Explained

• Wages: – 8 workers

• $8 per hour.– $1,280 per worker per month.

» $122,880 per year.

– Advisor• $10,400 per month.

– $125,000 per year.

– Engineer • $10,000 per month.

– $120,000 per year.

Revenue• Two Sources of Revenue:– Perfect Pour Machine Sales• $5,000 per unit.

– Customer Data• Subscription based

– $19.99 per month.

Break Even Point

• We need to sell 113 units.– Total Revenue:• $592,106.00

– Total Cost:• $589,213.44

– Total Profit:• $2,893.00

Break Even Point

Return on Investment

• Similar Product: Coke Freestyle Machine– Sold 1,500 machines in 3 years.

• Given that our product its more risky• Alcohol is more expensive than soda.

– Costs of over pouring.

• Skepticism about the product at first.

– We project slow sales at first.• Around 500 units in 4 years.

– 50 in first year, 100 in second, 150 in third, and 200 in fourth.

Return on Investment

Year 1 Year 2 Year 3 Year 4

-$400,000.00

-$300,000.00

-$200,000.00

-$100,000.00

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

Time in Years

Profi

t

Projected Yearly Costs

$1,429 $200,000

$367,880

$150,000

$39,000 $28,250

PatentMaterials & RepairsWages UtilitiesPropertyMarketing

Financial Risks

• Low margin of error due to costs of over pouring.• Customer data must be useful to our customers in

order to justify the $19.99 per month• Competition and similar products on the market.

Financial Opportunities

• Global Market• Official Perfect Pour bar • Novelty Item– Manufacture at small scale in order to advertise to the

mass consumer market. • Partnerships with alcohol companies – Produce new containers to replace bottles.

BADASS DRINK MAKING MACHINE THAT MAXIMIZES EFFICENCY, PRODUCES REVENUE, AND ENSURES CUSTOMER SATISFACTION. ENJOY LIFE, CREATE MEMORIES AND HAVE THE PERFECT DRINK EVERYTIME.

Thank You.

Questions?