Andy Tabrizi, Mark Meyer

MyStuff“Because our Brands are Part of us”

Why is it that I pay 50 bucks whenever I get a new pair of headphones that only cost $5 to produce?• The reason for this is simply that it takes a lot more

than $5 to sell me a pair of headphones…• Companies have to pay in order to: 1. Establish their brand 2. Get their products on stores shelves and in front of

customers3. Perform Research and Development 4. Cover potential IP costs

IDEA

• Customer acquisition is one of the most expensive parts of any business, even more so for newly formed ones

• Intellectual property plays a truly massive role in the modern economy the Nike swoosh is not damaged when I rip my shirt so why isn’t that taken into consideration when I buy a replacement?

• Most products are still priced as if manufacturing is the most important factor; That may have been true in the past, but as the value shifts to the IP in products manufacturing is just another pricing component

• ----We are building a wide-reaching rewards program like system to address this issue and make interactions between companies and their customers more efficient----

IDEA (CONT)

The current pricing model is antiquated and is too inflexible to represent changing costs

• When a consumer purchases a product part of the price is a function of the intellectual property in the product-

• When they go to purchase a newer version or have to replace a lost or broken version, the price they pay should reflect this ‘investment’ into the IP- it currently does not

• Discounts customer’s receive, from loyalty and membership programs, are disproportionately low from companies which they purchase regularly buy products

PROBLEM

• “Loyal customers generate 55-70% of company sales”• Yet “93% of customers think loyalty programs are a marketing

tool, not a benefit for the customer”

• The problem is two fold:

For companies: losing potential market share, missed opportunities for greater brand loyalty, slower R&D cycles

For customers: longer wait for new products (longer upgrade cycle) as a function of the current pricing model and insufficient compensation for their brand loyalty

PROBLEM (CONT)

• After speaking with hundreds of consumers, we found that they find rewards program to be:

1) Benefit the retailor more than the customer2) Don’t provide enough incentive to be ‘loyal’3) Rewards structure is unclear, sometimes even ambiguous4) Take too long to see benefits

Consumers

MyStuff is a big, disruptive idea

• We have the potential to partner with every company that has repeat costumers- drastically reducing inefficiencies in the market

• Companies sell more products and consumers are able to speed up their upgrade cycle

• We do not need that level of penetration to be profitable, but to have that kind of penetration to be successful but that is our goal

VISION

• Broker deals with partner companies such that:1) R&D cycles are sped up as consumers will be able to

purchase more products because of the discounting scheme

2) Brands make less on each unit, but increase total profits as a function of increased units sold- and increased brand loyalty

3) Consumers are able to see direct benefits (discounts on upgrades, newer version) as a result of their participation

What We Do

• Beginning to end experience of a MyStuff customer:

1) Register for free MyStuff membership2) Buy product from a MyStuff partner3) Have your purchase verified through the MyStuff website4) Go onto MyStuff website and buy newer version of product at a discounted price

What We Do

We need:

1. Partnerships with companies that sell consumer goods 2. Members to buy their products

• Once we have deals with companies in different categories in place, our users will cross pollinate attracting more interest in each product

• We are going to start by targeting regional companies, or companies with a national presence that have strong competitors

• We understand that at a certain point will have to spend a significant amount on marketing to both get the MyStuff name on the minds of customers and educate them on them. Once a critical mass is hit we believe that word of mouth will prove our best means of promotion

STRATEGY AND IMPLEMENTATION

Andy Tabrizi Mark Meyer Joe Ellis

Economics Major Political Science Major Computer Science Major Harvard, MA Urbana, OH Spring Grove, IL

TEAM

Our Pricing Scheme

• For a retailer that already handles a large portion of it business online or in company owned outlets: We will offer integration with our system through the use of a MyStuff card or an Https login system. For this type of business we would charge a royalty of 3-5% on all upgrades. And would index the data free of charge.

Pricing Scheme (CONT)

• Companies may also wish to have upgrades completely handled by our site. If we make the sale on our website and the company itself handles the shipping and processing we would charge a royalty of 8-10% on original purchases and upgrades.

• If one of our partners is unable to provide its own shipping and they would like to use standard Mystuff packaging for upgrades and wants us to handle the entire sale we would consider a 15%-20% royality.

• Loyalty and membership programs exist- “each year $48 billion worth of customer loyalty reward points are dispensed”

• Individual consumer brands are not are competitors- rather our partners

• Credit cards which give points for shopping at certain stores follow this loyalty model, but are not attempting as wide reaching a program as MyStuff

• Companies Like Five Star and Crowd Twist understand the benefits of a universal reward program, but not the fundamental change involved in our loyalty system

COMPETITION

• MyStuff is largely scalable- targeting specific markets is a potential way to gain traction, but is not a binding approach

• Companies: It sounds broad- but businesses who are trying to increase market share and have repeat customers (yes, that is most businesses) are all plausible MyStuff partners. Though some are a more natural fit- apparel, consumer electronic, furniture, appliances, among others whereas others- namely software- do not fit the model as cleanly

• Customers: Our members will be consumers who regularly purchase consumer goods and want a pricing model that accurately reflects the ‘investments’ that have already made into brands they consistently use

• Note: All statistics from http://www.truaxis.com/blog/12694/economics-of-loyalty-rewards/

MARKET

• We foresee having two plans for the future of the company:

• 1) Take the company from its current state to an IPO and operate it as a public entity

• 2) Companies who have a great need for big data aggregation of consumer shopping patterns (Google and Amazon among them) could be companies that we eventually partner with or are bought by

Exit Strategy