IMAGES : https://postimg.cc/gallery/HgtQNtQ
Vance Hanna Design LLC Tea. 1.0 Executive Summary Introduction
Mission : Vance Hanna Design LLC to provide a iconic design of a tea pot to market that is savvy and has collectors waiting for more.
The Culture and use of tea is a growing market. Witness: "After considerable research, only those teas with rich flavors and superior health benefits are selected for Teavana. We opened our first tea house in Atlanta, Georgia. Since then we have opened over 95 Teavana locations throughout the US and Mexico." The typical customer is either someone purchasing a unique gift for a friend/relative, or someone who is interested in owning unusual collectible tea pot(s)
The Company will import their proprietary designed porcelain tea pot as an initial product offering and control purchase contracts, shipping, warehousing, and delivery scheduling. Thus,the company will concentrate on it's special custom designed fortune cookie iconic teapot and tea accouterments from China.
The Tea Pot :(personal size~16oz [470ml], approx 2 cups) is a design that came from the visualization of a fortune cookie sitting on table in my favorite American/Chinese restaurant. The image of the cookie is the fundamental form of the vessel. It is of porcelain and features a very slick almost aerodynamic form that is instantly recognized and praised by all. It won an award at Chicago Housewares in 2009. Functionally it is excellent as the ergonomics of the handle and body work in harmony as well as a high quality stainless steel infuser which fits inside the body of the vessel. It is a 'decorative' design and does not technologically do anything except impress the owner with 'style' and design. (See Donald Norman's book: Emotional Design or Why we Love or Hate Everyday Things.)
The Company Vance Hanna Design, LLC is a limited liability company registered in the state of Michigan for tax purposes. Its founder is Mr. Vance Hanna. The teapot is a highly respected and iconic designed product that has potentially serious sales impact on a very fast emerging market for tea aficionados and collectors of tea pots. Vance Hanna Design LLC will leverage their competitive advantage of a customer-centric business model to a rapidly growing tea and health conscience market model to rapidly gain market share in the traditional metal/porcelain tea pot market. The company seeks a limited number of private investors and does not plan to go public. The company has its office in Merced, CA. The facility, a residence with rooms and small office spaces. The company expects to begin offering its services in October/November,2021. The Services Vance Hanna Design, LLC offers complete import services for a design patented tea pot. As mentioned previously, this includes the following:
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Vance Hanna Design LLC Tea. Supplier/buyer identification custom packaging Purchasing, contracting and consulting Shipping Warehousing Delivery It must be noted that Vance Hanna Design, LLC will arrange other warehousing facilities and intends to initially control this particular service within a range of garage space and as sales increase, to a rented storage facility. The Market Vance Hanna Design, LLC will be concentrating on servicing just three types of clients: Firstly, a wholesale market of high end luxury retailers such as Neiman Marcus, Gumps et al and and secondly: International House ware organizations such as World Kitchen, LLC,,etc. retail tea sales like Teavanna type operations, and the retail online internet business directly from our warehouse. Further in this regard, we will be initially doing trade shows and selling the product directly from the floor both wholesale and retail. The product will be fair traded such to not create false markets that compete for business thus destroying any potential for high quality distributorship. For both the wholesale market segments, we will have secured exclusive contracts or endorsements putting us in a unique position to service these niche firms and their needs. The online segment will be thru social media instagram, redit, U-Tube type endorsements and yes, thru news releases and promotional public relations via Blue Dot, Dezeen, Architecture Magazine, ID magazine, Car Styling,Metropolis,Nylon, etc. Profitability in these two markets is expected to be excellent, especially in the import section of Tevanna draws customers from it's mall locations in 9 stores. We expect profitability to be excellent when initial wholesale sales begin.
Financial Considerations Start-up assets required include expenses and cash needed to support operations until revenues reach an acceptable level. Most of the company's liabilities will come from outside private investors and management investment. We will as the plan evolves with solid sales, request borrowing from Stanford Federal Credit Union, the principal to be paid off in two years.
To date, VHD,LLC has invested over $15,000 including design patent, trademark and prototypes including a few porcelain vessels. The company expects to reach profitability in the first year and does not anticipate any serious cash flow problems. We expect that about 500 units per month will guarantee well beyond a break-even point. Almost -0- overhead will be generated in the first 12 months. Profits will be returned to investors and secured for future sales and marketing. 1.1 Company Summary Vance Hanna Design, LLC, is a limited liability company registered in the state of Michigan for tax purposes. Its founder, Mr. Vance Hanna has brought together a highly respected group of individuals who are versed in the various aspects of foreign trade processes. Vance Hanna Design, LLC will be concentrating on servicing just three types of clients: Firstly, a wholesale market of high end luxury retailers such as Neiman Marcus, Gumps et al and and
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Vance Hanna Design LLC Tea. secondly: International House ware organizations such as World Kitchen, LLC,,etc. retail tea sales like Teavanna type operations, and the retail online internet business directly from our warehouse. Further in this regard, we will be initially doing trade shows and selling the product directly from the floor both wholesale and retail. The product will be fair traded such to not create false markets that compete for business thus destroying any potential for high quality distributorship. For both the wholesale market segments, we will have secured exclusive contracts or endorsements putting us in a unique position to service these niche firms and their needs. The online segment will be thru U-Tube type endorsements and yes, thru news releases and promotional public relations via Bludot, Architecture Magazine, ID magazine, Car Styling, Wired, Metropolis, Nylon, etc. Profitability in these two markets is expected to be excellent, especially in the import section of Tevanna draws customers from it's mall locations in 92 stores. We expect profitability to be excellent when initial wholesale sales begin. Initial costs for the product shipped to our door will be in the area of $29.00~33.00 US.* We expect the wholesale price based on volume to be $48.40 and retail to be $99.00~$125.00 2.0
Products and Services Fortune Tea, LLC offers import/services plus design consulting services. As mentioned previously, this includes the following: Supplier/buyer identification/custom design Purchasing process contracting and consulting Shipping setup Warehousing arrangements Delivery Vance Hanna Design, LLC will be importing a proprietary designed tea pot from China, where Mr. Hanna has had business experience.
Our revenue model is based on a commission rate charged to our clients scaled on the dollar value of goods moved per order. 3.0 Market Analysis Summary US tea sales are expected to grow to from $6 billion in 2005 to $10 billion by 2021, according to the World Tea Expo, a trade show. Nationally, the number of tea cafes has ... Around the Net In Brand Marketing - Tea Consumption & Industry Statistics in 2021: In the US, ready-to-drink tea accounted for 76.2% of total revenue share, with the remainder attributed to RTD coffee. Source: yourbestdigs.com Each day, over 159 million Americans drink tea. Source: Tea USA The UK is the largest per-capita consumer of tea averaging about 3.5 to 4.0 cups per day. US trade statistics report 236 million kilograms (519 million pounds) of tea imports per year.
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Vance Hanna Design LLC Tea. The US consumed over 3.8 billion gallons of tea in 2018.Tea USA Five out of six North Americans drink tea. The average North American consumes one cup of tea per day. The average North American consumes 800 grams (1.76 pounds) of tea each year. American tea industry wholesale purchases increased 130% from $2 billion annually a decade ago to more than $4.6 billion in 1999. Tea consumption generates approximately $150 million in sales each year in Canada. Tea consumption will continue to increase as health-conscious consumers choose tea for its medicinal benefits. Tea is a rich source of antioxidants and flavanoids which are scientifically proven to aid in the prevention of heart disease and cancer. The antioxidants in two cups of black tea are equivalent to the antioxidants in one glass of red wine, seven glasses of orange juice, or 20 glasses of apple juice. Furthermore: The Tea industry report: 2020 (market research.com) The U.S. Market is Estimated at $1.1 Billion, While China is Forecast to Grow at 5% CAGR Vance Hanna Design LLC will be concentrating on servicing just three types of clients, the wholesale housewares industry, retail tea and coffee gift stores and online retail. For both the wholesale and retail market segments, we will seek to have secured exclusive contracts or endorsements .This will put us in a unique position to service these niche firms and their more demanding needs. Profitability in these two markets is expected to be excellent, especially in the wholesale international market. While demand for products related to tea consumption might equal a much smaller portion of the above increase of market to the $4.6billion, one half of one percent (exceedingly conservative) =$23,000,000.00 related tea accessories. If in fact the teapot sales would account for possibly 3/4 of the amount then we're looking at: $17,250,000.00 in teapot sales alone in the USA. Of that number we expect to see a serious increase in the interest in high quality traditional porcelain tea pots. In this market alone, the Asian manufacturers have nearly the entire market. Our Tea pot will be a standout in this market as buyers in the market have remarked that they have purchased the Asian Cast Iron pots as 'stylish'. The Vance Hanna Design.LLC product will be an immediate hit with this market.
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Vance Hanna Design LLC Tea. 4.0 Strategy and Implementation Summary Please see our Marketing Plan for a more detailed review: Our firm's business strategy is to enter into a focused or niche market where it can offer a higher standard of service/product to its specialized clients. This will allow us to charge a slightly higher fee to our clients for these differentiated services. Introduction at House ware shows, press releases to over 50 different publications worldwide. All to have data on our website for immediate contact. Immediate U-Tube and internet magazine articles on the stylish design to create instant web traffic to our site. Letters of introduction to such companies that are retailers of tea and tea products. Followup with those who will accept a personal visit for a sale. 4.1 Competitive Edge Our competitive edge is that our Vance Hanna Design Tea Pot is a unique iconic design that has immediate customer appeal. It appeals on a viceral level of pure aesthetics based on it's iconic design of a fortune cookie. Something that is so unique it has to be acquired by an awaiting collector audience and an awaiting market for the growing number of 'health conscience' tea aficionados. The fortune cookie is known by every living sole on the planet. This then is our customer: every person of means who has ever witnessed a tea pot.
How will it happen? 1) People collect things and groups of things. The teapot collector market is huge. 2) Retail sales in upscale malls that have 'tea and gift type outlets'. 3) Web sales from our own site 4) road show sales 5) private label/markets "The tea pot therefore was a western innovation. Its origins are unknown, one possible source being the small Chinese vessel used for the service of wine. Another possible source of the tea pot is the Islamic vessel used for the service of coffee. This brings us to the question----what is the difference between a tea and a coffee pot? Traditionally a coffee pot is a tall vessel whilst the tea pot is globular but there is no practical reason for this distinction." Tea2Dine4.com
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And further proof of a massive collector market: "In the past 30 years, the contemporary American teapot has become the most significant object of decorative and applied art being produced and collected. Thousands of artists, working in all media, have embraced the teapot, creating individual testimonials to this appealing form." From "Teapots Transformed: Exploration of an Object", by Leslie Ferrin Published by GUILD Publishing, Madison, Wisconsin, 2000 The Artful Teapot Garth Clark c. 2001 Collectible Teapots Reference and Price Guide Tina M. Carter c. 2000 The Eccentric Teapot - 400 yrs. Of Invention c. 1989 Teapots the Collectors Guidec. 1998 Teapots Vol. 1 - Chrisites Guide c. 1996 China TeapotsAntique collector's pocket guides c. 1997 The Teapot - An Appreciation c. 1999 However the collector market alone is not enough. We will offer our teapot thru clubs, collection societies and on the website of every possible tea company that sells tea pots. Museum sales to upscale world wide fine art museums and Art Galleries. 4.2 Marketing Strategy Fortune Tea, LLC intends to initially put out press releases in all the design media including but not limited to: ID Magazine, Architecture,Dezeen, Metropolis, Nylon, Auto Styling, etc. being national and international but also including newspaper and magazines in California. Beyond press releases in the national media, VHD LLC intends to participate as a vendor at all available kitchen ware and such trade shows for a period of time to initially introduce the product first hand to both the wholesale distribution channels as well as retail on the floor. Immediate sales will offset expenses incurred for promotion. Marketing immediately thru an internet site: Initially as press releases are effective, an instant response from an internet website will follow up with a retail customer. Thus, as press releases appear, customers are driven to a website as well as a U-Tube type experience.
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Vance Hanna Design LLC Tea. 4.3 Sales Strategy VHD LLC intends to develop sales on several levels: The Wholesale market is a target market for this product. 3x mark-up to create a 'fair trade' product so that all retail sales are not sacrificed by having one company price cut another.
1) By establishing close contact with potential wholesale clients. We will begin by contacting local and regional sales personnel in the established tea and accouterments market such as: Tevanna. In addition, we intend to promote knowledge of the product thru trade environment to draw in our target market segments.
2)This includes trade shows. We intend to sell both retail and wholesale from the show floors to amortize our initial costs.
3) Website (Vance Hanna Design, LLC) Our Own dynamic and exciting POP site. a) Linked to E-Bay store.
4) Collector fairs and clubs: Throughout the US and Europe there are a multitude of collector clubs to be contacted. Special intro pricing for them should be a sales point. 4.4 Milestones
Milestone 1) SLA model complete and ready to be created (quoted and accepted by VHD,LLC) and delivered to us for final approval. complete Milestone 2) First off prototype in from Chinese supplier and approved for production. Incomplete. Vessels need further detail and handles, infuser and fit/ finish. Milestone 3) Final completed production quality vessel including stainless steel infuser: VHD,LLC to be in supervisory capacity required at the Chinese Factory to ensure the detail and finalization. incomplete Milestone 4) Initial order of 1000 units from high end retail. (Neiman Marcus/Gumps et al)For immediate show/sale/trade show in USA. Milestone 4) Instant sale and re-coupe of cashflow from initial order. Pay investors Milestone 5: Placement of second order to China for 2000 units of which more than half should be spoken for by wholesale PO. From here onward continued order placement, customer follow-up and upbeat marketing will help grow this product to an international level. We expect to see international sales in the third quarter of 2022. This primarily will take place in Europe.
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Management Summary Company President, and Director of Product Development: Hanna
6.0 Financial Plan Our financial plan anticipates a few months of negative profits as we gain sales volume and pay back initial investments from Hanna. We estimate that because the tea market is known to be in the billions, a start-up tea company, Mighty Leaf shows: "Last year Mighty Leaf got its first outside investment. VMG Equity Partners, among the first investors in Vitamin Water, spent $7.5 million for a 15% stake in Mighty Leaf, valuing the company at $50 million.
6.1 Projected Cash Flow We do not expect to have any short-term cash flow problems even though we will be operating at a loss for the first year. Our short-term loan will be repaid in three equal payments in 2021. Our long-term loan will be paid off in 1year. This business is highly profitable and will generate significant revenue simply by continued sales growth. As expenses increase, the profit will increase proportionally.
7.0 Closing VHD LLC is applying for a 'partnership' more so than a angel loan. Looking to Garner funds to complete and market: Award winning designer teapot. Design Patented &Trademarked, prototyped. Need final working prototype and connections to high end retail buyers. such as Neiman Marcus, Gumps, et al. The global tea market is 12.63 billion USD. according to 'marketdataforcast.com' Tea, a dried leaf–infused beverage derived from the leaves of a small shrub originally from China, has become the world’s second most popular beverage after water, with 3 billion cups consumed every day across the world. (https://www.iisd.org/system/files/publications/ssi-global-market-report-tea.pdf) Design patented with Trademark in first stage porcelain. Needs final working production quality prototype for
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Vance Hanna Design LLC Tea. samples to market. Neiman Marcus 18months previous interested to see the finished product. Also have casual interest from Hammacher Schlemmer as a "search for invention" award previously garnered.
FINANCIALS REQUESTED: Need $8,300 for finish working 100% full production quality sample(s) (of which is 1800 for the tooling for stainless steel infuser prototype) (3500 for next generation porcelain vessel body) 2000 for iron handle tooling and $1000 for tooling on wood handle and brass screws. Need $12,000 to oversee and physically supervise the above final details IN China (I have been there 2 x previous) Chinese Manufacturer needs 1000 initial order** to produce in quantity at $29-33/e cost including FOB USA Need $9000 for promotional marketing to select retailers includes some travel. Balance 29,000 will NOT be requested until the following: An initial order will not be given to the Chinese company (which requires an initial order for production of 1000 pcs)until a confirming order from a major retailer is in hand and guaranteed with PO. We are (once garnered we anticipate increasing this placed order to 1200 for stock and samples) looking to place a minimum order with the first retail customer of 1000 to cover this first order from our Chinese partner. It is estimated that the cost per unit from the factory will be somewhere around $29-33 USD. This is not firm at this point. The final production quality product from our Chinese partner will furnish this final cost per unit. Further, packaging*, and FOB Charges to US port of entry are not yet resolved. Again, a savvy partner with retail linkage will certainly be welcome: Looking for a partner who is intimately familiar with the retail/ consumer/kitchen ware industry. A partner that has the connective linkage to select high end retail and fully able to open the door for the initial visit and sales pitch (with live samples to offer). Packaging/marketing needed, Hanna to oversee yet needs assistance with the retailer's input and package design/dunnage. 8.0
ABOUT VANCE HANNA DESIGN LLC Hanna is a graduate of Stanford University's Master's program in Product Design. Having worked as a designer /consulting engineer to Freightliner/Volvo & Ford he was recruited by Lawrence Technological University, Southfield, Michigan to develop and institute a multi- million dollar program of design education. Hanna was then placed by LTU as Chairman of Art and Design and immediately garnered $500,000 from Ford Motor Company to launch the (now highly sought after) world class automotive design program currently in it's twelfth year. He maintained that position until 2017 and has since focused his work on this teapot. Hanna has complete CAD and full scale porcelain prototypes (available to ship for your perusal and or photographs) that are within a few months of completion to fully working production quality models. The request entails a partnership to complete and market this product to a multi- billion dollar market in the 'tea world' collectors and housewares market.
THE TEAPOT (personal size~16oz [470ml], approx 2 cups) is a design that came from the visualization of a fortune cookie sitting on table in my favorite American/Chinese restaurant. The image of the cookie is the fundamental form of the vessel. It is of porcelain and features a very slick almost aerodynamic form that is instantly recognized and praised by all. It won an award at Chicago Housewares in 2009. Functionally it is excellent as the ergonomics of the handle and body work in harmony as well as a high quality stainless steel infuser which fits inside the body of the vessel. It is a 'decorative' design and does not technologically do anything except impress the owner with 'style' and design. (See Donald Norman's book:
Emotional Design or Why we Love or Hate Everyday Things.)
link to images: https://postimg.cc/gallery/HgtQNtQ
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Vance Hanna Design LLC Tea. Again If you do not have connective linkage to the high end luxury house ware market please re-think your position as this product is critical and will function best with that connective linkage I am open to meeting and showing the two prototypes that I do have.
Thank you for reading this and looking forward to working with you, I remain, Sincerely,
Vance Hanna President
CONTACT INFORMATION:
Vance Hanna Phone:248-496-6364
3723 Duke Ct
Merced, CA 95348
email:
[email protected] * custom packaging for individual retailer if needed.
** This price from the factory is based on an initial order of 1000 pc. We expect to negotiate a better price for obviously larger quantity orders. This also will give us the ability to drive our wholesale to retail differential.