Range Travel Goods owned by TNT Minds, LLC Asking Price: $300,000
TNT Minds, LLC 5249 N Fox Run Way Meridian, ID 83646 (801) 835-6948
Table of Contents 3............................................................Business Description 3............................................................Location
4............................................................Business Strengths
4............................................................Competative Overview 5............................................................Products
6............................................................Under Development 6............................................................Operations
6............................................................Inventory List
7............................................................Manufacturing Breakdown 7-9.........................................................Industry Statistics 10..........................................................Customer Profile
10..........................................................Online Retail Partners
10..........................................................Marketing Initiatives & Strategy 11..........................................................Key Management & Employees
11..........................................................Future Plans & Growth Projections 12..........................................................Potential Buyer Concerns 12-13.....................................................Opportunities
13..........................................................Financial Information 13..........................................................Contacts
Business Description Range Travel Goods specializes in minimalist travel items for the everyday traveler. Each of its products have multiple uses and are compact to be minimal in size and weight. Range Travel Goods is set up as a LLC under the name of “TNT Minds” with two owners: Taylor and Tanner Dame. The ownership is split 50/50. TNT Minds was founded in February of 2014. Range Travel Goods as a brand was started in March of 2017 under TNT Minds, LLC. Range Travel Goods was established as a registered trademark in 2017. Each of the four products we’ve created have multiple features satisfying more than one need. Our oldest and best selling product is the Duo, a multi-use inflatable travel pillow. We also offer a multi-use hammock that functions as a beach blanket and a tarp. We have a dog food carrying system that functions as food and water set for a family traveling with pets. We have used a number of different sales channels as part of our strategy. We first introduced each of the products by launching them on Kickstarter.com, a crowd funding website. Once each product has been successfully funded, it’s then sold through our Shopify website and Amazon Seller Central account. We have partnered with The Grommet in the past few months, which has been a growing relationship that has increased sales. We have a warehouse rented where we ship out product twice a week. We attend to customer service everyday for 30 minutes or so, but all in all there’s about 5-8 hours a week of general labor that is put into Range Travel Goods. We have one part-time employee and the owners, Taylor and Tanner, fill in when needed.
Location 439 S Capitol Blvd, Boise, ID 83702 We have a storage facility that we use to store and keep all inventory. It’s about 50’ x 50’ in size, and all product is kept and shipped from this location. It is a month-to-month lease with no long-term contract, and we pay $200 a month for the storage unit that is centrally located in downtown Boise.
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Business Strengths We have been able to successfully identify where traditional travel products have failed and improve upon them. This strength of developing products to be minimal, yet very functional has proven to be a key factor in our success. We have some very uniquely designed products that stand out from what is currently on the market. Each item we have taken to market is unique in the way it looks and the way it functions. Our biggest strengths are the design of the product and the targeting of young travelers who doesn’t want to use their mom’s stale travel items. The challenges we face are getting the product in front of the right customers and educating them on the features and benefits that make our products superior. Some of the products need more direction and visuals to display how the product is used at its fullest potential. We have overcome a lot of these challenges with YouTube videos detailing how our products work along with creating icons and instructions that come with the products. Additionally, the website is laid out with each of our products characteristics. The website is custom built and focuses on ease of purchase.
Competative Overview The biggest competitors in the industry are targeting an older demographic in the travel industry and are very similar as far as designs and look:
• Eagle Creek • Eddie Bauer • Travelon • Samsonite
Our products are exclusive in the fact that they have multi-uses and unique design elements. Most of the brands listed above are selling the same product but branding the product differently. We have a young customer base looking for one-of-a-kind products that perform and look good while doing so. Our designs are 100% unique to us with all of our products being created in-house. Nothing is picked off of a shelf and branded even though most of the travel industry works like this. Our unique designs are what make us stand out. 4
Products
Sole Socks is an insole sock replacement for anyone wanting to wear shoes, loafers, and/or heels without socks. It absorbs sweat, odor and moisture for the perfect look and comfort without having to wear socks.
Duo Pillow
is the ultimate travel pillow that allows travelers to get the most comfortable sleep away from home with its four unique resting positions. The inflatable pillow doesn’t look like your traditional travel pillow. It has a micro fleece shell over the bladder and comes standard with a removable hood.
Treeo is a multi-use hammock made from ripstop nylon and sealed with taped seams
to ensure quality and durability. The main function is a hammock, but it can also be used as a ground/beach cloth or a rain tarp. The Treeo is offered in 4 colors, and it comes standard with tree straps, carabiners and guy lines.
Doggie Duffel is a pet travel kit that comes in two sizes for smaller or larger pets. It holds dry dog or cat food and has a spout to pour the food into the collapsible silicone bowls that store in the bottom of the bag. It comes standard with a water bottle clip and water & food bowls making traveling with a pet simple.
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Under Development We have 3 other travel items that are either under development or have final samples completed and ready to order including a convertible money clip, travel towel and compression travel shelf. Online sales are the only way we’ve sold our product up to this point through the following channels:
• rangetravelgoods.com • amazon.com • thegrommet.com
Operations All inventory is shipped out twice a week from our warehouse. Orders are processed in the following ways depending on what platform the order was placed: • Shopify: Orders are approved through the platform. The customer shipping information is then inputted into the Endicia Shipping Program. The order is then shipped according to its weight. The label is generated and tracking is inputted into the Shopify website. The label is then taken to the warehouse and put into the appropriate packaging and shipped out through United States Postal Office. • Grommet.com: Orders are processed through their platform, approved and the shipping label is printed through the Grommet.com platform. All tracking is then inputted back into the system. Once printed, the order is fulfilled. • Mass Shipments: All orders are received, weighed, packaged, boxed & shipped via UPS or FedEx. All shipping details including tracking numbers are then uploaded back to the retailer or customer.
Inventory List
Product Cost MSRP Inventory Treeo Hammock $24.50 $89.00 490 Duo Travel Pillow $5.04 $39.99 3000 Doggie Duffel S 7.46 $48.00 1198 Doggie Duffle L 8.66 $55.00 1255 Sole Socks Basic $0.65 $11.99 10500 Sole Socks Plus $0.82 $11.99 8100 Sole Socks Kids $0.65 $3.66 5800
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Manufacturing Breakdown Product
Sole Socks Doggie Duffel Treeo Duo
Location
China China China China
Production Time 45 days 45 days 40 days 60 days
MOQ
500 1200 1000 5000
Specialty
Foot Accessories Bags & Canvas Nylon & Camp Products Travel Accessories
An overseas manufacturing partner has been identified for each of the products. We have visited each of the manufacturing facilities personally to ensure they meet the highest quality standards. Each factory has been in business for more than 10 years.
Industry Statistics Travel is one of the fastest growing industries for with more and more people venturing further and further from home. There was a 12.5% increase over the last year showing that Americans’ spending habits have increased for the second consecutive year. The eighth annual survey projects the total amount spent on vacations this summer will be $101.1 billion, up from $89.9 billion last year. Allianz also reported that, on average, Americans will spend $1,978 on summer vacations this year – a 10 percent increase from last year’s $1,798 average. The survey found that Generation X summertime vacationers will spend double the amount that Millennials spend, while still spending more than Baby Boomers as well. Millennials – those between the ages of 18 and 24 – will spend $1,373, while Baby Boomers – those ages 55 and over – will spend $1,865, followed by Generation Xers – those between the ages of 35 to 54 – to top it all off with an average spending of $2,628. Source: Travel Agent Central
More and more people are traveling whether it be for work or leisure. The travel industry is growing each year and a new generation of travelers are coming onto the scene. (Continued on the next two pages..)
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0,3
dollars (in billion)
$261 BILLION
$122 BILLION
$81 BILLION
$64 BILLION
$41 BILLION
40% eco tour
45% adventurous travel
75% Mix business with leisure
38% health
43% spa/relaxation
55% independent travel
Customer Profile Our customer is someone shopping online who is into traveling and wanting to simplify the process. This person is an early adopter looking for something unique rather than the standard product on the market. They tend to be within two groups: an older, seasoned traveler looking for comfort or a younger millennial looking for a unique twist on travel products.
Online Retail Partners: • The Grommet is an online platform that specializes in shining a light on innovative concepts in everyday use products // www.thegrommet.com • Touch of Modern is a members only flash sale website that focuses on tech products // www.touchofmodern.com • Jane.com is an online flash sale e-commerce website that has a big following with a focus on moms // www.jane.com • Group Deals is an online flash sale e-commerce site that has a massive audience that they market to through email • Brickyard Buffalo is a small scale deal-a-day site that focuses on moms // www.brickyardbuffalo.com • Amazon.com is a primary seller of our products. We recently set up our own brand page and have a partner we sell to directly who buys product at wholesale and resell // www.amazon.com • Zulily is an online retailer who specializes in flash sales to their subscriber list. It is owned by QVC and is always looking for unique products to sell // www.zulily.com
Marketing Initiatives & Strategy
• Social Media awareness (Instagram & Facebook) • Creative content via videos & photos (hosted on Dropbox) • Influencer seeding • Facebook ads (targeted at specific travelers) • Newsletter campaigns • Media submissions
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Key Management & Employees Customer Service
Hourly position, checking the info@rangetravelgoods.com email. We spend 2-3 hours a week on customer service emails.
Shipping
Hourly position, shipping 2-3 times a week out of our warehouse. We spend about 2-3 hours a week shipping and receiving product.
Marketing
We market our products through social media, photoshoots and video curation. We spend no budget on marketing at this point and post daily on Instagram (@rangetravelgoods). Marketing efforts are completed by Taylor and Tanner, the owners.
Manufacturing & Product Development
We work with manufactures every few weeks depending on what is needing done. We work with 4 different manufacturers and Tanner deals with them directly. He spends about 3-4 hours a month working on new products and re-ordering current product.
Products in Development
• Toiletry Kit (physical sample available, needing one more set of changes) • Adjustable Passport Holder (90% ready to take to market) • Modular Money Belt (ready to take to market) • Compression Hanging Shelf (sampling now, 50%)
Future Plans & Growth Projections Although our products are already being sold on Amazon, we do not have a highly successful marketing strategy to drive Amazon sales. We’ve partnered with Amazon marketers with mixed success. This has been our largest focus of growth. Facebook ads has been an important part of our success. This is especially true with our Kickstarter projects where we’ve been able to transition over to begin driving traffic to our website. In addition to the these growth strategies, we have plans to broaden our sales channels to include large distributors and more online retailers. 11
Potential Buyer Concerns
• Finding ways to get into the marketplace • The bigger competitors have years of experience and a hold on retail • Systems need put into place • Inventory management, marketing, sales programs, etc. • Educating customers on how the products work
With every business, there will be challenges and obstacles to overcome. With a good online strategy and a focus on growing B2C, the potential is huge. We have just scratched the surface as we both work full-time jobs, have kids and are involved in other side business that distract our time. Our current systems and structures are very basic. We have kept things bear bones to this point. As growth happens, more structure and systems will need to be set in place. This is a good time to come in and lay down guidelines and structure that will set Range Travel Goods up for success. The new owner would take on inventory and could hit the ground running with no time or revenue lost. The biggest piece would be having the shipping and customer service roles defined. It would be a very easy transition and learning curve. Once put into place, the new owner would easily have success out of the gate.
Opportunities With a firm strategy and getting aggressive on opening new sales channels, there are a lot of ways to grow the business. Some channels that we haven’t had the time to pursue include: • Monthly Subscription Boxes: Bark Box, Trunk Club, Birchbox, Get Cairn, The Nomadik, etc. • International Distributors: We’ve been approached and have a list of potential partners who we could provide for you. • Duty Free Stores/Airport Retail: This is a huge market with 2 major trade shows to find buyers. It is one of the most direct lines to the core consumer. Attending a trade show and contacting a list of store buyers would be the starting point to open this market. • Large Box Stores: Target, Wal-Mart, Walgreens, Dicks Sporting Goods, Academy Sports, REI, Bed Bath & Beyond, etc. (Continued on next page..) 12
(..Opportunities Continued) • Online Retailers: Backcountry.com, Magellans.com, travelsmith.com, ebags.com, containerstore.com, etc. • Amazon: We have just scratched the surface selling on Amazon with one seller. We’re still learning the ins-and-outs of the market, but there is a lot of opportunities if Range Travel Goods is presented in the best light on this platform. • Facebook Marketing: We’ve only done a little bit of Facebook marketing to drive traffic to our website but haven’t made it a priority to focus on the channel.
Financial Information Tax Year Revenue
Net Income
Discretionary Earnings
2014 $84,157 $53,976 $30,000 2015 $185,905 $73,185 $86,000 2016 $31,995 $8,346 $0 2017 $507,855 $120,521 $43,661
Contacts
Operations Marketing and Sales Tanner Dame Taylor Dame Tanner@iwantproof.com Taylor@iwantproof.com (801) 835-6948 (208) 901-9637
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