Groupon 2.0 for business Reducing the cost of doing business. Stephen Oâ€™Leary: Skype: icc.sl mail: firstname.lastname@example.org Angel list: angel.co/reduce-my-invoice Website: www.reducemyinvoice.com
Summery • Market size, UK over 740bn, twice the size of the retail market. • Market size, USA over $4.9 trillion. • Disrupter to traditional wholesale, everyone gets the bulk price. • Large average basket size. • Recurring monthly orders. • Scalable • Socially scalable as the more we grow, the more our buyers save.
Why? • Currently only companies with a big cheque books and large storage areas can get large volume discounts. • Example; • Midpac UK sell raffia @ • £3.55 for 1 • £3.40 each if you buy 12 • £3.25 each if you buy 24 • Would it not be better if everyone could get the lowest price, without the need to buy more than they need.
What do we do? â€˘ Online wholesaler, who groups orders together, to give large volume discounts. â€˘ Everyone gets the best price.
How the market looks.
How it should look.
How? Easy to use and navigate, built on force.com, we have a stable platform to work with, but can also grow exponentially without detriment to customer service or delivery times. Where we are! How quick can we scale: The chart on the right shows how just one sales person, bringing in 20 new subscribers per week with only 10% sharing can result in at least 17 new active accounts per month per sales staff. ÂŁ500 average spend per month!
Where we should be!
First vertical! •Due to the wide verity of products that can be offered, we would consider ourselves to have a horizontal application, however to start, we will target key verticals based on 4 factors. • 1.We feel we can be of most benefit to them. 2.Easy to interact at a decision maker level, small enterprises. 3.Verticals that we already have an understanding of. 4.Verticals with specific standard needs I.E Latex gloves for funeral homes/directors – Raffia for florists.
Competition •Traditional wholesalers: are the main competitors to Reduce My Invoice, this is the industry we aim to disrupt. •Advantages over us and improvements needed. •Quicker delivery: This we aim to address as we grow by holding more inventory. We will also be able to offer a buy it now option for next day delivery. •Credit accounts: Again something we are looking to fix as we grow. We will do this only on insurable, credit worthy companies.
Targets Targets first few months 1. The first objective for Reduce My Invoice was to get a live working site, which is now complete and currently as we speak we are finishing our user experience testing. (completed) 2. To get our first subscribers this was completed during our research calls, but once live we will need to reengage. (completed) 3. To make our first sale. (in process)
Targets first 6 months 4. To grow at 20 new subscribers per week. 5. To convert 10% of new subscribers to active buyers. 6. To have 10% of buyers recommend at least one other company. 7. To achieve a minimum spend of ÂŁ500 per active buyer.
Conclusion Without funding: This is what we will achieve over the first year. This will take us from where we started 0 subscribers to 2000 with 200 active buyers spending ÂŁ500 each month with a minumum10% profit.
12000 10000 8000 6000
Real income Burn
4000 2000 0
With funding: We believe that we can grow 10 or more times faster than we will without funding. By utilising more sales staff, better social media marketing, SEO, bigger email blasts, quicker delivery times and a more extensive product range, we feel that we can start to capture a large slice of the UK wholesale market very quickly. Once we have a stable footing in the UK, we can then look at the wider European and North American markets, with the help of our buyers as the more we sell the more they save!