Professional Documents
Culture Documents
Transprotek, LLC
February, 2008
Investment Prospectus Page 2
The Company
defective goods, largely, but not completely, eliminating the need for
the company to maintain a customer service department.
Products successfully sold on eBay will then be added to the catalog of
the Online store. Store purchase prices will be determined by the
average price obtained from auction activity.
Whether sold at auction or from the online store, the potential for
product sales is quite separate from the sales and marketing materials
used to promote them. Popularity of the product, success in sales
achieved by other sellers, the margin achieved between the cost of
product, and the average sale price, along with the immediate
availability from a supplier are all critical when considering the
selection of a product. Substantial available resource material makes
optimum selection of product readily obtainable. With an extensive
database of all items sold on eBay, a rigorous research protocol has
been developed which yields the probability of a successful auction or
store sale, (Listing Success Rate or LSR) along with the Average Sale
Price (ASP), from which the likelihood of successful sale and the most
probable profit or loss can be calculated.
To assure a consistent flow of quality listings, the development of
competitive multiple product listings requires effort beyond the ability
of a single individual. To that end, The Company will hire a number of
independent contractors who will be used to first use the above
Investment Prospectus Page 4
student had mastered the material. Working from the specified format,
a programmer or programming team often spent months translating
the design document to a program which faithfully adhered to the
specifications set forth.
Many additional hours were devoted to insuring that the program met
design specifications, and operated without error. During this
development process, packaging had to be designed, and a user
manual written. This process took the work of many individuals, and
frequently extended over several months. To recover the costs, and
earn a profit, the publisher was required to set a high price for each
product it produced.
… And Now
Something’s Different
Product Development
The Market
According to a 2003 study (the latest available) carried out by the U.S.
Department of Education, National Center for Education, approximately
1.1 million students were reported as being home schooled. This
represented 2.2% of the school-age population at that time. Long term
trends indicate declining funding being available to Public Education,
potentially driving parents to seek instructional alternatives for their
children.
Beyond elementary-secondary education, the instructional model
described above is equally applicable to much of the coursework
offered by Higher Education.
Investment Prospectus Page 8
These instructional materials will have their own shopping carts on The
Company website. All materials will be available for download following
credit card verification. The Social Net makes word-of-mouth an
effective distribution mechanism, which, when coupled with the
website appears to significantly reduce what might otherwise be a
prohibitive sales and marketing expense.
Risk Factors
Elements comprising risk to investors are as set forth below:
Competition: With minimal barriers to entry, more than one-half million
individuals and companies are engaged in auction and product sales
activity. In order to successfully compete, The Company will be
required to identify niche markets, as well as finding suppliers for these
products.
Recession: At the current writing, consumer confidence and spending
has sharply declined, as a result of substantial erosion of U.S. Economic
Resources. The depth and duration of this decline are unknown, but a
recent sharp decline in eBay stock valuation is an indicator of the
impact of this risk.
Profit Margins: As manufacturer inventories have grown, many products
have become so readily available that seller margins have sharply
eroded. Sophisticated buyers are frequently able to secure product at
or below cost, making it necessary to sell high volumes of each item to
secure substantial profit.
Management Skills: Many different skill sets are required to
successfully manage a profitable business. The current Managing
Owner’s strengths lie in the areas of Technology Development,
Operations and Financial Management, with weakness seen in
administering the Sales and Marketing efforts of the organization. This
weakness may seriously impact on company profitability.
Use of Funds
Income
Gross Sales Gross sales resulting from eBay auction activity
Investment Prospectus Page 10
Expenses
Payroll Compensation to Owner Manager
Compensation made to Independent Contractors for
Royalties research and advertising of products
Subscriptions Fees paid for access to drop shippers
Fees paid for credit card processing (2.64% of
Credit Card Fees transaction)
Auction Fees Fees paid for posting of auctions
Website Monthly Website maintenance fee.