Patent# 7,836,653 B1 IW# CCAPR-12 Desc: Cool Cover™
er™ Cool Cov dable, An Affor e and Attractiv al Way to n io t c n u F Units Cover AC
An Affordable, Attractive and Functional Way to Cover AC Units By Innovators Warehouse
www.AcCoolCover.com â€˘ iwcrew@InnovatorsWarehouse.com
Cool Cover | Prospectus
Contact and Licensing Information
Cool Cover | Prospectus
Introduction Innovators Warehouse, along with inventor, Randy Herrington, introduces the Cool Cover, a patented invention available for licensing opportunities. Designed to blend in with surrounding buildings and environment, the Cool Cover provides an attractive means of camouflaging and protecting air conditioner units and other unsightly utilities, without impeding their functionality. Other specific advantages of the Cool Cover include: •
Significantly reduces unit noise
Protects from weather and other damage
Keeps unit running efficiently
Keeps kids and pets safely away from units
Extends life of HVAC units
Easy to install, without any tools required
Adjustable in size
Locking slats provide extra stability
Made with high quality, weather-resistant materials, the Cool Cover remains beautiful for years. Modular in nature, the Cool Cover is designed to fit around virtually any sized AC unit, or any other outdoor eyesore (such as gas meters, pool pumps, propane tanks, trash cans, etc.). Though it was initially designed with a vinyl siding surface, the construction of the Cool Cover may be altered to reflect the design of the home where it will reside, ensuring a complementary look. In use, the slats of the Cool Cover are locked into place and through a unique anchoring system the Cool Cover stays firmly in place. However; given its modular nature, it is easily accessible and / or moved when needed. Furthermore, there is plenty of space around the Cool Cover to allow for ease of grass trimming. As a protective structure, the Cool Cover will appeal to a homeowner’s practical side, as it ensures the efficiency and longevity of AC units and other utilities. However, it will also appeal to homeowners’ desires to maintain a pristine curb appeal, which in turn will maintain or increase the value of their home. At a time when homeowners are doing everything in their power to sustain the value of their homes through the current economic downturn, the Cool Cover arrives on the market with a practical functionality that will appeal to consumers nationwide, ensuring a tremendous return on investment for those with ownership rights to its patent. 4
Product Design The Cool Cover is currently produced in three sizes (40 inch, 48 inch and 60 inch); however, specific dimensions and design parameters may vary depending on specific homeowner needs. Regardless of size, the Cool Cover is comprised generally of the following basic components, in various colors and sizes: •
U-Shaped slats (ideally, adjustable) or louvers
Posts with caps
The Cool Cover slats may be constructed of various light weight materials, such as metal, plastic, fiberglass, siding, vinyl, or others. The slats and posts may be attached to one another with various methods, but ideally it will be designed with grooves and slots, allowing it to be constructed without the need for tools. Regardless of its configuration, the slats will be arranged in a way that allows for proper ventilation, while maintaining the integrity of the structure. It is important to note that various modifications may be made without compromising the integrity of the Cool Cover patent. For example: •
The style of the slats may be altered to reflect the design of the home at which the Cool Cover is going to be used.
Louvers attached to the frame may be designed to swivel so that bursts of exhausted air from the air conditioner unit swivel the louvers to an open position for proper ventilation.
Relatively simple in design, the Cool Cover is easy to produce, minimizing start-up costs and ensuring healthy margins for manufacturers, distributors and retailers.
Cool Cover | Prospectus
Competitive Landscape While hiding or minimizing unsightly AC units (and other utilities such as pool pumps, propane tanks, etc.) outside homes is a common problem for homeowners, there are a limited number of ways to address the problem. Among the most prevalent is the use of foliage or plants, which are seasonal in many parts of the country; making their use less than ideal. Other options range from inexpensive temporary covers, to costly custom made structures. Unfortunately, while the temporary covers are somewhat functional in minimizing wear and tear from weather, they do nothing to improve the curb appeal of the home. And while customized, hand built structures are both functional and aesthetically pleasing, they are cost prohibitive for most homeowners. The drawbacks of these other ‘camouflaging’ methods are overcome by the Cool Cover, which is functional, while being affordable, attractive, easy to install and virtually maintenance free.
Industry Overview One upside to the housing bust of recent years is the upswing in home improvement activity. As homeowners accept that upgrading to a larger home is not as viable as it once was, they begin to explore ways to improve their existing homes, through do-it-yourself home improvement projects, as well as large scale overhauls. According to research provided by the Home Improvement Research Industry, the Home Improvement Products Market grew 2.8% in 2011 and is predicted to grow another 4 percent in 2012. Product sales for 2011 were forecasted at $267 billion by the end of 2011. The report goes on to predict that “as employment growth accelerates and housing markets improve in 2012, we expect growth to average 4.8% over the period 2012-2016.” 6
ary Tempor ractive Not Att
Confirming the health of the home improvement industry is a January, 2011, report published by Harvard University, which states that “over the coming years, remodeling expenditures are expected to increase at an inflation-adjusted 3.5% annual rate, below the pace during the housing boom, but sharply recovering from the recent downturn. The industry, which saw a double-digit decline since its peak in 2007, is beginning to return to a more typical pattern of growth.” Together, these industry factors suggest that now is an opportune time to introduce a practical and affordable solution to a common problem among American Homeowners.
...states that “over the coming years, remodeling expenditures
Target Market Because the Cool Cover is appropriate for use across the country, the target market universe includes a broad demographic of all U.S. single family homeowners, of which there are 63.3 million, according to the 2009 American Housing Survey.
are expected to increase at an inflation-adjusted 3.5% annual rate...
One particular segment of this large market that will be particularly drawn to the Cool Cover are the Do-it-Yourselfers (DIYers), a growing group of Americans that represent the ‘new frugality’ that has emerged in the U.S. As previously indicated, homeowners are staying in their homes longer, requiring more maintenance and improvement. Trends suggest that the DIY market is growing steadily as homeowners take on many of these home improvement tasks on their own. Confirming the growth of the DIY market is a report by Mintel, which indicates that the $10.5 billion home improvement market will continue its growth trend through 2011 and beyond, citing “the need for on-going maintenance and repair, consumer interest in resource-saving products and pent-up demand.”
Cool Cover | Prospectus
Patent Details The patent for the Cool Cover was applied for on November 28, 2007 and granted on November 23, 2010.
Abstract The present invention discloses an air conditioner cover having at least two posts, a plurality of slats, and a plurality of obstructions used to properly distance the slats from the ground. The air conditioner cover also has connectors disposed between said posts and said slats in some embodiments. The air conditioner cover is designed to surround an air conditioner unit in order to hide it from sight and to protect the air conditioner unit from various types of damage. The present invention is specifically designed to ensure appropriate ventilation, as the uniquely shaped slats have in order to provide a spacing gap for ventilation purposes, while still providing a barrier to the air conditioner unit.
Financial Analysis Assumptions (40 inch cover):
$75 Estimated production costs
2 Estimated manufacturerâ€™s mark-up $150 Suggested wholesale price
2 Mark-up to retail
$299 Suggested retail price:
63,300,000 Target Market: U.S. Homeowners
.03, .05, .10% Market Share (%) (Yr-1, Yr-2, Yr-3):
Estimated projections Year 1
Units Sold WHOLESALE Gross revenue Cost of sales Gross Profit (50%) RETAIL Gross revenue Cost of sales Gross profit (49.83%)
Decreased production costs based on volume are not reflected in projections.
After subtracting very conservative cost estimates to manufacture a 40 Inch Cool Cover, the investor is still looking at a return of $18 million+ after 3 years!
Cool Cover | Prospectus
Contact & Licensing Information 877.509.7642 931 SW LeMans Ln Lee’s Summit MO 64082
W.ID# iwcrew @
WAR ALL ACEHOUSE CES kenny@
Kenny Durham President / CEO, Warehouse Mgr.
931 SW LeMans Ln Lee’s Summit MO 64082
Innova torsWa rehous e.c
Commercial success only occurs when a well thought out plan is executed precisely. I am not saying that speed bumps don’t suddenly appear from time to time on the road to commercial success, they occur a lot. The successful business person finds a way to smooth them out or detours around them without losing too much momentum.
– Kenny Durham, Innovators Warehouse