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Prime price (now PriceOn) pitch

Early days Prime Price (now PriceOn) pitch. Very naive and optimistic :) Inspired by Color we sent it to Sequoia Capital, Andreessen Horowitz etc. :D
After year startup name changed to PriceOn and we raised 1m $.

2011-06-22

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Prime price (now PriceOn) pitch

  1. 1. Problem Buyer wants the most suitable product. Seller wants to prove that his offer is the best. Buyer doubts: Seller loses buyers who: • About the price • Go elsewhere to check the price and do not return • About feasibility of promo discount • Don’t know that seller has the necessary product • About product suitability for their needs • Think that this seller is too expensive Buyer regrets: • Distrust promo discounts • For overpaying • For not buying the most suitable • For having unjustified doubts
  2. 2. Solution Product search service, encompassing ALL sellers, both online and offline which makes it possible: Buyer Seller • Can find description of the product and price in ALL STORES • Can inform buyers about their prices, promo discounts and available products • Get info about prices of product in nearby stores, promo discounts and other special offers • Can bust myths about their overly high prices and attract new buyers • Can compare between products meeting their criteria and choose the best based on their needs and resources • Can develop real-time personalized (by users needs, time, location etc.) marketing An example of use: As the user chooses milk at a shop, they scan the product bar code using their mobile phone and receives a comparison of the product prices in nearby shops. The buyer is also informed about any available promotions and special offers relevant to the product they might be looking for.
  3. 3. Market size There are currently about 2 billion internet users. We think that our product may be interesting to about half of them – 1 billion people. We hope that 150 to 250 million people will use our service constantly, and they will carry out an estimated 1 billion price searches every day. In the light of the Google search advertising revenue performance (and reductions on 2x), the estimated monetary size of the search advertising market could be at least 4 billion $. And this is only search advertising market data.
  4. 4. Competitors Why Us P R E S E N T There are only online shop price comparison services (like pricegrabber.com) and state-funded statistical price services on the market. Only the first group may be considered our partial competitors since the second group simply presents product group price trends rather than the specific prices of specific products. The main difference between our service and those of competitors is that they publish only comparisons of online shop products and only for those shops which present such information. However, a lot of people continue to prefer regular offline shops in their everyday shopping. F U T U R E Although currently there are no real competitors on the market, it seems highly probable that as soon as our service appears competitors will appear as well to copy our successful business model. The strongest competitors may be the companies that are currently administering online shop price comparison websites. Having the advantage of being the first on the market, we will be able to ensure a legal advantage by signing restrictive agreements with sellers. We hope to occupy at least 50% of the market and gradually expand that share. It is important that we have dedicated considerable effort to the development of a good system, which will take a considerable amount of time for competitors to reach us (6 months). Current web market players may be scared away by the fact that in order to develop a successful business model they should refocus to management-based and integrated work with offline sellers. Competitors
  5. 5. Project graph Version | Deadline (After financing is granted) The following four stages of development of the product are planned (to date, funding for the first version (1.0) has been assured): 1.0 2011-09-01 The user can perform a web-based search in the products database and compare the offers of sellers. The service will operate in Lithuania and the database will cover approximately 300,000 products found in major shopping centres of the country. 2.0 8 months The functionality of the service is expanded considerably; mobile device applications are introduced; the search engine is enhanced; the user, partner, and company staff interfaces are improved; and an advertising sales module is developed. The service will operate in USA, Canada, China, Japan, France, Switzerland, Germany, Austria, Belgium, Holland, UK, Ireland, Russia, Lithuania, Latvia. 3.0 20 months The functionality of the service is expanded further: smart product comparison and cart modules are introduced; place of purchase proposal; information collection bots; geolocation module - search is associated with user location; search and advertising modules are improved; and cooperation platforms for smaller sellers are prepared. The service will operate in USA, Canada, China, Japan, South Korea, India, Australia, all EU countries, Russia, Ukraine, Brazil. Expansion Further stages of expansion: personal offer platforms; last minute offer platforms; real time special offer platforms; special platforms for service providers, cafes, etc.; payment modules; and expansion of the service to a number of countries around the world.
  6. 6. Product: IT system - Virtually unlimited user load (scales horizontally, inspired by CQRS) - High Reliability and Availability (one-way messaging between nodes) - Ability to reinterpret collected data as business requirements change (Event Sourcing) - Extensible and Maintainable (front-end – MVC, back-end - DDD) - Development process based on true spirit of Lean & Agile
  7. 7. Product: Data collection Partnership – Our system, the seller’s warehouse, and marketing systems will be integrated. The sellers who communicate prices themselves will always be motivated by the benefit of providing accurate data to users and by additional rating points in the search engine, additional functions, etc. Crowdsourcing – Certain users may be requested to enter the price of the product they are searching for (if the search is carried out in a shop by scanning barcodes). This will not place any additional load on the user because he/she will already have scanned the product and geolocation will identify in which location he/she is. The user then will have to press a few buttons to enter the price or refuse to do it. Dedicated employees – We have some employees whose main task will be to collect product and price information in certain stores. Bots: Web bots who collect information from e-shops or pricelists on the web.
  8. 8. Business model What we sell Who we sell to How we sell Announcements of promotions and special offers Offline and online sellers Automatic announcement of promotions directly from partner IT systems Advertising in search results Sellers, manufacturers Automatic auction Redirection to product purchase pages of online shops Online shops Automatic link ordering Redirection to partner pages Manufacturers, offline shops Automatic link ordering Statistics Consultancy companies, manufacturers, sellers, public sector Automatically generated pre-set statistical sets Planned to be completed during further expansion stages: Personal offer announcement platform Large retail chains Our software package integrated into the seller’s system which automatically presents personal offers to buyers Last minute platform service Service providers, sellers Our automatic announcements publication software package with modules adapted for specific businesses Special offer platform service Sellers, service providers Local offer platform service Sellers, service providers
  9. 9. Cofounders CEO – Jurij Laneckij (Yuri Laneckiy) 7 years – Head and Founder of Departament (70 staff) in Engineering Company. Vilnius University, Lawyer Full CV here CTO – Andrejus Poznanskis 4 years – .NET Web Developer (asp.net, asp.net mvc). Vilnius University, Developer Full CV here
  10. 10. Finance: Current situation To date, founders have invested 125,000 USD in the project. This amount should be sufficient for the implementation and start of the project version 1.0 in Lithuania. The provision of the service will not generate any real revenue until the start of version 2.0 of the project since no automatic advertising order module will be available at the beginning.
  11. 11. Finance: Seeking financing For the rapid development of the project we need to fund: Project costs 2.0 version (1-8 months) bugdet $ 3.0 version (9-20 months) bugdet $ System development 1 520 000 1 840 000 System support, traffic 480 000 3 120 000 Office costs 680 000 360 000 Branch‘s costs 1 480 000 5 560 000 Operating costs 1 800 000 5 120 000 Total 6 000 000 16 000 000 8-20 months revenue 12 000 000 Seeking financing 6 000 000 4 000 000 10 000 000 $ * If you are interested in detailed cost and revenue estimates please contact us
  12. 12. jurij@primeprice.lt www.primeprice.lt Private company “Prime price” Contacts

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