A Business Opportunity...
... that at leastWhat is the Cap Factory?
The Cap factory is a license to trade as a licensee of Barpex Proprietary Limited. The Cap Factory is a retail business that embroiders and sells headwear and other bodywear.
It is recommended that the Cap Factory be established at large shopping malls due to the number of pedestrian shoppers. We do not recommend using the central business district, other than in unusual circumstances. Our experience and knowledge tells us that large Shopping Centre Management will take care of the number of shoppers since they need to ensure that they have happy tenants.
What happens at a Cap factory?
The Cap Factory is retail in nature. Caps will be embroidered to a customer's selected design or a customised design. Embroidery will not be restricted to Caps, for example towels, rugs, shirts, jumpers, underwear and novelty items, etc.. There is also opportunity to accept commercial orders.
Do I have to lease a shop?
| The business operates out of a patented booth. The booth has been designed with the customer in mind, in that the embroidery machine can be viewed easily. The booth is visually bright. It has display cabinets on all sides. The area within the booth allows for two operators, storage of stocks, small refrigerator and telephone/facsimile machine. |  |
The Cap Factory has a small footprint and only needs a source of electricity and some display lighting to become operative. It is modular in design and can be easily transported.
The booth has been designed to be operated by an experienced single person, nevertheless it can comfortably have two people running it if necessary.
Why is this different from other embroidery businesses?
| There is no direct competition with the Cap Factory. The Cap Factory is aiming at the walkpast, impulsive, single purchase customer. Whereas other embroidery businesses aim at large commercial orders such as work clothes. As well, competition is normally in low profile, light commercial sites, not high foot traffic areas like a shopping mall. The market rests with the walkpast consumer. |
Embroidery services have often been difficult to obtain since they have been in non-retail areas and have been aimed at a customer wanting a large volume of the same thing. Therefore, they more often than not operate out of premises away from the retail market. To establish an embroidery business in an area where there is a large volume of pedestrian shoppers will bring convenience into retail embroidery.
The decision to purchase an embroidered item or have their own item embroidered will be spontaneous and to some extent driven by an occasion such as a birthday, birth, anniversary, etc..
I do not know how to run an embroidery business?
We will teach you!!!!
We will teach you how to embroider a full range of products. The embroidery machine and software is very sophisticated. It has many designs which can be reproduced at the request of a customer. All designs can be customised as required.
We will provide all proforma documents for your use and convenience.
Partnerships?
There is also other opportunity available in other items such as towels, shirts, etc and this can involve other retailers in the shopping mall. This in effect means that referral will play a role in the retailing of embroidered items. This will also operate in converse in that we can refer customers to other retailers. An opportunity lies in helping other retailers advertise and even value-add their services/wares through personalised shirts, polos, etc or by offering customers the same
What about fad fashion?
Caps are increasing in popularity not decreasing, but your marketing plan needs to consider changing tastes. Some protection needs to be built into this by offering other products and ideas. Your imagination is the limit. For instance, local promotions, events, occasions....such as the Olympics.
The market is purely domestic. The Cap Factory is not producing a unique product and the only factors that it is capitalising upon are CONVENIENCE, PRICE, PLACE AND PROMOTION.
What is our competitive advantage?
There will be a range of caps of different quality. The embroidered design will be of one price no matter what the cap cost. Therefore, all customers will be catered for on the basis of price. There will be particular customers who will buy on price alone and others on quality. Both can be serviced.
We can provide other services ...for instance, a customer may want a cap of a certain price and quality, and also have a shirt that they have provided to be embroidered with the same logo. The same applies to all items provided by a customer.
We can also undertake to produce a DESIGN to their requirements within a reasonable time. There will be a standard fee for this service.
We undertake to provide a customer with a cap of a design in our library within a reasonable time of making an order. We UNDERTAKE to satisfy the customer within their normal shopping time.
If a customer has a bulk order, there will be an undertaking to satisfy that order according to the customer's reasonable request for delivery.
What are the products?
Our products cover a full range in quality to ensure that all customer budgets can be catered for. We will carry a broad range of stock and due to our contacts, stocks can be ordered quickly. |
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Our projections are based on cap sales and embroidery thereon. The average price has been estimated at $22 per cap. But this does not include other sales of:
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A great deal of effort will be put into innovation. This means that we will be looking for further advancement in machinery, software, customer satisfaction for designs, customer feedback, and new products.
What will the Cap Factory cost me?
| Around $80,000.00* *Depending on the location of the proposed site and the current exchange rate. |
What do I get for this investment?
The following is an inventory of what is received for the investment:
- Single Head Embroidery Machine
- Computer & Software
- Design Library
- Complete Booth
- Perspex Safety Cover for Embroidery Machine
- Signage
- Lighting
- Advertising video and tape for Television & Radio
- Stock Starter Kit
- Training & Support
- Advertising on the Internet
- "1800" telephone number support
- Digitising of special designs
- Assistance with site selection and negotiating with the shopping centre management for acceptable tenancy terms and conditions including rental.
Will I need any further capital?
There will be working capital needs. You will need to consult with your financial advisers, since each Cap Factory will be different depending upon the level of borrowing's, staff employed, rent, turnover, etc.
- Setup costs will typically include:
- ACCOUNTING
- LEGAL/STAMP DUTY
- ELECTRICITY CONNECTION
- TELEPHONE/FAX PURCHASE & CONNECTION
- INSURANCE
- RENT IN ADVANCE
- INCIDENTALS
- LEGAL/STAMP DUTY
Financial Performance?
As you are aware each business will vary from site to site depending upon volume of foot traffic. We are prepared to make available the figures of our training Cap Factory at Lavington Shopping Centre, Albury for your scrutiny. Any appraisal must be done in conjunction with an appropriately qualified business adviser.
Mission statement
We will win by providing high quality, personalised embroidered products to the average shopper.
We will offer a range of products to suit the budget of all shoppers with an excellence in embroidery for all items.
We will measure success by constantly surveying our customers as to how satisfied they are with our service, range of ideas and products and their opinions as to our improvement. We will also monitor our sales performance on a weekly basis, which will confirm our direction.
We will have a dedicated team and excel in innovation when it comes to new products and ideas.
We will also create fashion.
