|Homes for Living,
112 Montana Drive
Chadds Ford, PA 19317
Anthony Wedo, Chairman & CEO
Carrie Wedo, VP Purchasing & Customer Service
Rod Heckman, VP of Marketing and PR
Janie P. Smyser, VP Sales & Training
Kelly Hax, Director Sales & Training
Product Line or Service Homes for living is a start-up
company in the retail direct selling industry. The company will specialize in home décor
and candle sales primarily selling through the venues of home shows (70%), corporate and
regional presentations (20%), as well as individual (5%) and web site ordering (5%).
Our Mission: "To become the premier direct selling retail brand, specializing in
home sales featuring superior quality, high value products to enhance the experience at
The company will execute this strategy by utilizing a large network of independent
contractors located in 4 areas of influence. Homes for Living, Inc. will begin
operations on or before August 1, 1998, with 300 or more independent contractors called,
Sales Associates, located in the Harrisburg/Philadelphia, Baltimore/Washington,
Greensboro/Atlanta, and San Diego/Southern California regional areas.
The first 300 Sales Associates will be highly experience, motivated and a recognized
group from the direct selling industry. They will provide a platform to field test our
systems and procedures, as well as, a basis for recruiting our target of 1,626 Sales
Associates by year-end. This year-end projection is based on only 20% of all Sales
Associates recruiting 2 people each per month. This is the current industry standard for
more mature brands, typically more difficult to recruit for than an exciting new start-up.
Technology/Proprietary Rights N/A
Market Opportunities The direct selling industry is large and
experiencing aggressive growth. A $21 billion industry that grew 16% from 95 to
96 up from 9% growth 94 to 95.
Additionally, our approach of group sales (a.k.a. party plan sales), represents 21% of
the industry, up 400% over the past 5 years. Inside this group selling environment,
clearly the home is perceived as the most convenient for the consumer. However, it is
important to note that the workplace is becoming more convenient for the consumer, as well
as, embraced by employers who are seeking new and novel ways to provide incentive to their
employees. At 14%, this category is up 300% over the past 5 years.
Marketing/Sales and Distribution Company will sell home décor
and candles through the venues of home shows (70%), corporate and regional presentations
(20%), as well as individual (5%), and web site ordering (5%). Additional order
fulfillment will be accomplished through an experienced national vendor located in the
Competition During our 4 months of research on the industry, we
concluded that sophistication levels were fairly low and opportunity for growth was high.
With the exception of Avon and Amway (A MLM Co.), no one has reached a billion dollars in
sales. Furthermore, only a handful of companies even broke the $100M sales level. Most
companies were in the $2M to $10M range. Within the $100M plus enterprises 3 companies
were particularly interesting because of their similar Sales Associate compensation plans.
Longaberger Basket Co., The Pampered Chef and the PartyLite organization. Through a
similar compensation plan, Longaberger Basket Co. and the Pampered Chef product offerings
are non-consumable in nature and extremely narrow in appeal. Longaberger sells woven
baskets of various sizes and shapes and The Pampered Chef sells cooking utensils and pots
and pans. However, at $611M and $230M respectively, its hard to argue about their
success. I would suggest it speaks more directly to the selling venue than the product
line. The PartyLite organization sells lower quality candles and home accessories. With
$700M in 1997 revenues they will become the K-Mart to our Crate N Barrel/Pier 1 Brand...
Homes for Living.
Manufacturing Company has created relationships with two
exclusive vendors; one for candles, the other for home décor. Both vendors will produce
private label and proprietary items.
Financial Information Company is seeking $1.35M venture funding
of which management will contribute a significant amount.