1. CORDLESSPRODUCTS, INC Corporate Headquarters 2551 Regency Cove Court Las Vegas, NV 89121C: 702.524.6650 O: 702.438.4968 F: 702.731.2383Technology Center Peter M Blonsky, PhD., MBA/COO502 N. 37th Drive, Suite 101 Phoenix, Arizona 89009 C: 480.518.5560 O: 480.439.4968 F: 480.214.5469 Manufacturing William Roquemore/VP XiaoLan Town, ZhongShan City Guangdong Province of China O: 86-760-2111513 F: 86.760.2111513 C: 13925350682 Presented By: David I. Lyons, Jr. CEO
2. CPI’s Goals & Objectives Capitalize on the evolving nature consumers use powered products to fulfill large, niche markets. Historically, electrically operated devices were plugged in to use and unplugged to store. CPI’s products are plugged in for storage and unplugged for use. Consumers are looking for convenience and environmental stewardship No electric cord tethers “Instant on” availability Greenand environmentally friendly
3. Company Commitment ……… “Environmental Responsibility” Using recyclable and recycled products Reducing greenhouse gasses Preserving our resources Protecting the planet
4. CompetentManagement Team Sr. Management - 85 years Professional & Experienced Business Management Manufacturing Batteries & Chargers China Import/Export Marketing/Sales World Recognized PhD. BLOWER BUDDY
5. ProductsNotExpected to Succeed Rotisserie - Ron Popeil - Sales to date - $1.25 Billion. Reason - Too Expensive, especially for infomercials Vacuum Cleaners - Dyson – Sales in 2007 - $1 Billion. Reason - Products are 2X the price of other brands. James Dyson staked his career on a 100-year-old household appliance that no one complained about. DustBuster - Black & Decker - 1979-1989 27 million DustBusters $1 Billion in revenue. Current sales - 5 million units/year; $250 million in revenue. 1979 Reason - No perceived need for a hand-held, cordless, rechargeable vacuum cleaner. Sales accomplished without Infomercials or Internet
6. More Projected “Failures” Vacuum Cleaners - Dirt Devil – (Copied after the DustBuster) Sales from 1999 – 2008 – 25 million sold- $750 Million in revenue. Reason - DustBuster dominated the market – no room for another. 1986 - Thighmaster - Suzanne Summers – sales - $100 Million Reason - No one will use it – cheaply made and ineffective. 1975 - Pet Rock - $15 million in six months. $56 million today. Reason – Obvious, It was a rock in box!!
7. First Product - Blower Buddy The Blower Buddy™, Patent Pending, is a portable, hand-held device used to generate focused streams of air at near hurricane force (75 mph )which can be used in a variety of home, business, military, and recreational outdoor applications.
9. Blower Buddy Projections Projected sales - First five years - 14 million units generating almost $800 million in revenue. First to market position - closest competition is canned air. Previously established needs of consumers. Infomercials and Internet Sales Call centers and Fulfillment houses along with JWO manufacturing reduces the need for Brick and Mortar facilities and inventory holding costs.
10. Potential Markets Home Business Canned Air OEM Software Co’s Schools Military Government Camping Fireplace RV’s BBQ Anything that gathers dust
11. MASSIVECustomer Base Middle class * Environmentally conscious Disposable income Able to make “emotional” purchase Over 1 Billion people worldwide are considered “middle class”
12. BLOWER BUDDY vs.“canned air” ENERGY STAR HIGH EFFICIENCY Ni-MH Batteries BIO-RECYCLED PLASTIC NEVER RUN OUT OF AIR NO DISPOSAL PROBLEMS
13. Disadvantages of “Canned Air” Not canned air but canned chemicals Harmful to Equipment, Environment and People Cost 8 times more than Blower Buddy 100 million cans go to landfills/year Freezes while using Possible explosions Runs out of air Storage problems …no more Chemicals.. PLEASE!!!
14. A Dramatic Use Never blow on a fire again until you get dizzy or wave a newspaper at it. FROM THIS………TO THIS IN 60 SECONDS !!
16. CPI Differentiation CPI employs "next generation" technologies Rapid-prototype product (Stereolithography) design and development High-speed and “Just When Ordered (JWO)” manufacturing and product delivery Implementation of advanced rechargeable battery and charger systems Implementation of interchangeable parts between products Internet/Infomercial marketing Call center and fulfillment house ordering
17. Focused marketing and Dominating sales strategy Television - (Advertisements & Infomercials) Internet - Direct Mailing -
19. Financial Requirements$11,000,000 1st Round $250,000 - Immediately for manufacturing costs of 5,000 units, etc. 2nd Round $350,000 - 30 days - for initial Infomercial and media purchase. 3rd Round $400,000 - 60 days - for media campaign, 10,000 units 4th Round $10 million - 90 to 120 days after product launch to fund mass market Infomercial implementation to dominate the consumer base
20. Payback of Loan As the following table shows, with planned sales reaching $284 million in the fifth year, we expect a 105% IRR on the initial investment. Five years after investing $1 million, the potential would be: $13,179,900 (valued interest) $3,293,949 (previous five years cash flow) $16,473,749 Total
21. Exit / Payback Strategy Short term loans 3 -12 months Payback or conversion to equity Longer terms 2 – 5 years Payback or conversion to equity Convertible notes IPO in 3-5 years Board Representation
22. Timing is Crucial CPI’s wholly owned subsidiary China Made, Inc. is READY for production and needs to get started to be ready for: The Fall/Winter Season 2010. 中国美德有限公司
23. Conclusion Everything has been completed: Research and Development Potential Customer Feedback Actual Use of Prototypes Market Analysis Infomercial Acceptance THE TIME IS NOW!