Commercial Customers: In our first year of operation, our customers are municipalities and marinas, who will purchase our product at the "wholesale" prices listed on our website and either lease or rent Kayak Condos to those willing to pay a bit more for convenience we've been talking about – the ability and benefit of accessing one's kayak more easily and therefore being able to use it more often.
Retail Customers: As we evolve and gain distributors, the private individual (kayaker) becomes a customer. At this time, Kayak Condos are only sold wholesale on pallets of 6. As our manufacturing costs decreases with greater volume, a retailer's markup emerges. Ideal distributor profile would be lumber and building supply centers who will profit from a (1) retail markup, (2) proper installation labor and (3) substructure lumber and tie-down (cable or strapping) materials. More regarding proper installation is on our website.
We solve two major problems:
1. The inconvenient nature of transporting kayaks to water. Loading, hauling, and unloading a kayak can be a pain - and doing it twice in one day is even worse. Our Kayak Condos provides an easy solution. Visitors to the waterfront can rent or lease a Kayak Condo to store their kayaks and all their equipment. That way they can not only spend more time in the water that day, but their incentivized to visit more because of the convenience of it.
2. Thousands of kayaks are stolen every year, which breaks our hearts. We offer a safe and secure way to store kayaks and gear to prevent theft.
The following is an excerpt from a letter was written by a customer operating substantial kayak rental operations in both Boston and Washington DC and plans to move into the Florida market:
"In the areas we operate in there is also a high demand for private storage of personal kayaks. However, the racks we use now are made of wood, unsightly and not very secure. Kayak Condos solve this problem. We envision working with Buddy and his team to provide over 200 Kayak condos for rent in the DC metro area alone. We currently have 110 spots on our wood racks and there is a waiting list. It's been great to see Buddy take his idea from concept to actual execution. I was lucky enough to meet Buddy over 6 years ago and give him feedback and see this idea grow."
Self-contained, convenient, safe and secure kayak storage modules. Think "gym lockers" for kayaks.
Kayak Condos will also help our initial target customers, the site managers who will lease or rent Kayak Condos, will be able to enhance their waterfront locations and drive frequency of visitation. No public waterfront in the world doesn't want more visitor activity – simply because, they "buy things" while they are there. They rent boats, buy drinks and refreshments, perhaps other merchandise. Now they can also rent a Kayak Condo and keep their kayaks there so as to access and use them more often, and buy those aforementioned items more often. All this goes to enhancing waterfront revenue.
We are also introducing the concept of "PaddleParks" to our commercial customers, offering planning and design services, as a solution to help them boost visitation and revenue. These "PaddleParks" are areas dedicated to kayakers - similar to a dog park for dogs and their owners - a comfortable place for kayakers to come to relax, enjoy their kayaks, and connect with other kayak enthusiasts.
Our market opportunity is global. We have had inquiries from as far away as Australia and as romantic as Ireland. This past summer, I even received an inquiry from Baghdad.
None – there is no competition for our product ANYWHERE! We need to market aggressively and move as quickly as we can to become the "bell cow," "the first word," "the leader" in convenient, safe and secure kayak storage.
Details are inherent within our Proforma statement.
We feel we have outlined a very reasonable picture of operating expenses as well as sales predictions. Our overhead is practically nil. We work out of a home office – a tremendous advantage in the heart of a Maine winter. Part of how we make money is selling a product that makes the buyer money. The buyer sets rental or lease fees predicated on his location. A Kayak Condo on a small lake in Maine is going to lease for less than a Kayak Condo on Biscayne Bay. We only wish we could sell Kayak Condos commensurate with where they will be rented. But by positioning Kayak Condos to our core customer as a "money-making tool," we'll do well. Add to that the idea of increasing foot traffic on waterfronts and we have a unique selling proposition to propose and offer.
Our goal is to get more people into more kayaks and in the water more – everywhere! Eventually, we'd like to build relationships distributors. Our ideal distributor would be a lumber building materials company who would profit from a fair markup on our product, the proper installation (labor team) to install our product, and the building materials on which Kayak Condos must be placed for proper installation and performance.
Initially, we need those commercial public and private venues, and perhaps a few resorts to get the product in front of the public to see and experience. Then we can move to sales to individuals through Dealers (distributors).
Our financial forecast included in the offering is a very conservative estimate of how many Kayak Condos would be sold in the United States, Canada, and other countries who have expressed an interest in our unique modular storage system. 900 units in our first year, 2000 in year 2, and 5000 in year 3 is certainly not a far-fetched unrealistic goal. Yet we show a significant profit. Income that IS NOT shown in the projections are income derived from designing PaddleParks. As we are able to communicate the feasibility and desirability of community PaddleParks, I would like to get involved in many of these efforts. For example, the City of Welland, Ontario is exhibiting interest in developing such a site. I will be visiting them in mid-September for that express purpose.
A significant milestone was reached this summer when we engaged a manufacturer in North Carolina. Because they also manufacture their own proprietary brand of kayaks, they "get" what we are about and share our enthusiasm.
Another milestone was acquiring a significant customer - the Niagara Peninsula Conservation Authority in Welland, Ontario, which is essentially a "state park." They recently purchased and installed 24 Kayak Condos on one of their 36 properties. Next spring, we anticipate seeing hundreds more Kayak Condos in Ontario, with other Canadian provinces keeping a close eye on our progress. God bless the Canadians!
Within the next few weeks, we anticipate another big milestone - a significant order from Boating in Boston and Boating in DC. The parent company of these two entities, like the Canadians, is heavily invested in boat rental operations and resorts nationwide.
The success of this crowdfunding raise will but us in a significantly better position to seek and secure these types of customers with multiple locations, either government or private entities.
Buddy is the founder and president of Kayak Concepts, LLC. His background is in advertising and design spanning more than 40 years creating marketing materials, for many different products and industries for Buddy Doyle Designs. Buddy is an entrepreneur, writer, photographer, and advertising and marketing expert. In addition, through building Kayak Concepts he has developed skills in manufacturing and product development. He lives in Maine with his wife Geraldine and is an avid kayaker.
Geraldine is the Vice President of Kayak Concepts and manages the day-to-day operations of the business as bookkeeper. Geraldine is also a full-time Realtor which she has been doing for many years.
Mr. Fletcher is a retired CPA having extensive experience in all manner of financial management and counseling. An avid sportsman and paddler, he saw a “winner” in the idea of Kayak Condos early on, and remains a most valuable member of our “team."
Mr. Katz is an attorney, former Mayor of Augusta Maine and now serves in the Maine State Senate. Mr. Katz saw a robust future in Kayak Condos to facilitate recreational opportunity in Maine where the state is crucially dependent upon access to outdoor experiences, and is himself a frequent paddler.
Donn Harriman is a CPA and provides Accounting and Administrative Advisory Services to Kayak Concepts. His background includes five years of public practice experience in business services, audit, and tax for a host of small and mid market for-profit, non-profit, and financial institution clients. Additionally, Donn has more than 20 years experience in private industry as Financial Controller, VP of Finance, VP of Operations, and CFO within manufacturing.
|Detailed Use of Proceeds:||Kayak Concepts has developed the Kayak Condo which is currently being marketed and sold. The proceeds are to increase manufacturing volumes to reduce costs and increase sales through marketing and distribution.|
|Description of Security:||LLC units with 1 voting right per unit|
|Name of Securities being sold:||Kayak Concepts LLC Units|
|Price Per Share/Unit:||$1.00|
|Total Fully Diluted Existing Shares/Units:|
|Common (or LLC units)||1,000,000|
|Total Outstanding Shares||1,000,000|
|New Shares being Offered:|
|New shares being offered (Minimum Goal)||50,000|
|New share % (on Minimum Goal)||4.8%|
|New shares being offered (Maximum Goal)||100,000|
|New share % (on Maximum Goal)||9.1.0%|
|Maximum Amount per Investor:||$|
|Website location for Annual Report:||www.kayakcondos.com/annualreport|
|Transfer Agent:||Company Lawyer|
|Issuer Legal Name:||Kayak Concepts LLC||Company type:||LLC|
|State of Incorporation:||Maine||Year Founded:||2007|
|Contact Name:||Buddy Doyle||Title:||President|
|Address:||18 Vine St|
|Proof of Identification:|
|Representative of your Financial Reports:|
|Corporation or LLC Certificate:|
|Tax Form IRS W9:|
|Copies of 2 years of tax returns:|