Investment Amount: $16,000.00
For this product there will be and additional initial investment of about $6,000 for equipment and additional equipment purchases of about $3,000/year can be expected to keep up with application equipment needed for growth.
This will be a Spray foam attic insulation that is applied by the homeowner using equipment that is supplied by us with the sale. This is the best way to both insulate your attic and reinforce you attic to protect against catastrophic wind damage to your house. It is the high price of professionally installed products and the even increasing cost of energy that will drive people to the internet to look for alternative way of achieving the same results at about 1/3 of the price. ROI on this product for the home owner should be less than 2 years. It’s a no brainer for them. This is another product that has the potential to do much more than the predicted sales amount so any potential investor should be prepared for cost associated with 7 figure sales if the sales trajectory is much steeper. The following links are both additional information about the 10 year history of the company and the agreement governing becoming an Inventory investor/owner:
Inventory Investors Outline
Business Cooperation Agreement
| Year | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|
| Investors Inventory Assets | $10,606.06 | $11,785.71 | $12,980.77 | $13,224.49 | $14,280.70 |
| Estimated Turnover per Year | 2.2 | 2.8 | 3.2 | 3.5 | 3.8 |
| Estimated Sales Volume/Year | $80,000 | $110,000 | $150,000 | $180,000 | $220,000 |
| Estimated Net Sales Price | $1,200 | $1,200 | $1,300 | $1,400 | $1,500 |
| Estimated Cost/Ocean Freight | $350 | $360 | $360 | $360 | $370 |
| Estiamed Gross Profit/Item | $850 | $840 | $940 | $1,040 | $1,130 |
| Estimated Advertising Percentage | 24% | 20% | 16% | 14% | 12% |
| Estimated Fixed Cost Percentage | 34% | 33% | 32% | 31% | 30% |
| Estimated Annual ROI | 48% | 79% | 140% | 199% | 257% |
| Estimated Investor Net Profit | $5,133.33 | $9,350.00 | $18,230.77 | $26,357.14 | $36,666.67 |
| Estimated Inventory Reinvestment | $11,785.71 | $12,980.77 | $13,224.49 | $14,280.70 | $0.00 |
| Estimated Investor Payout | $3,953.68 | $8,154.94 | $17,987.05 | $25,300.93 | $50,947.37 |
| Estimated Accumulated Payout | $3,953.68 | $12,108.62 | $30,095.67 | $55,396.61 | $106,343.97 |