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Pegasus Sports International is a start-up aftermarket inline skating accessory manufacturer. In addition to the aftermarket products, Pegasus is developing SkateTours, a service that takes clients out, in conjunction with a local skate shop, and provides them with an afternoon of skating using inline skates and some of Pegasus' other accessories such as SkateSails.
The aftermarket skate accessory market has been largely ignored. While there are several major manufacturers of the skates themselves, the accessory market has not been addressed. This provides Pegasus with an extraordinary opportunity for market growth. Skating is a booming sport. Currently most of the skating is recreational. There are however a growing number of competitions, both team orientated such as skate hockey as well as individual competitions such as speed skate racing. Pegasus will work to grow these markets as well as develop the skate transportation market, a more utilitarian use of skating.
Several of Pegasus' currently developed products have patents pending and local market research indicates that there is great demand for these products.
Pegasus will achieve fast, significant market penetration that will be achieved through a solid business model, long range planning, and a strong management team that will able to execute on this exciting opportunity. The three principals on the management team have over 30 years of combined personal and industry experience. This extensive experience provides Pegasus with the empirical information as well as the passion to provide the skating market with much needed aftermarket products.
Pegasus will sell their products initially through their website. This "Dell" direct to the consumer approach will allow Pegasus to achieve higher margins and maintain a close relationship with the customers which is essential for producing products that have a true market demand. By the end of the year, Pegasus will have developed relationships with different skate shops and will begin to sell some of their products through the use of retailers.
|Direct Cost of Sales||2003||2004||2005|
|Subtotal Direct Cost of Sales||$95,159||$125,046||$143,605|
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