JeanBank.com
You already own JeanBank stock – find out what
it’s worth and put it to work!
business plan in draft state 1/22/12 minus
financials ~ pre-release ~ completion expected by 2/28/12
Retailers earn one billion
dollars a day in revenue selling consumers Manufacturer’s Suggested
Retail Priced brand name stock.
Consumers store new purchases in finite drawer and closet space often
displacing goods in excellent condition.
Unfortunately for consumers, but good for us, the displaced goods lack a
market and have no residual worth even though valuable intrinsic qualities are
readily apparent. JeanBank appraises
goods for their Fair Market Value based on intrinsic qualities creating
potential Deposits of $1M to $50M daily for Depositors. Secondly, JeanBank, as a third party, can
appraise and certify 501c3 FMV charity and non-profit virtual donations (501c3s
cannot) creating a Perception of Real Value, plus JB makes it possible for 501c3
to redeem FMV Stock Donations for cash while increasing clothing assistance to
those in need.
Help Yourself, Help Others, JeanBank is an ECO Friendly
Green Bank where you
Save ~ Conserve ~ Recycle ~ Look & Feel Absolutely
Marvelous
in a fun, socially
rewarding and contributing way.
“VC's are clamoring to get in the game, celebrities are throwing money at it, and the media is eating it up. It’s been coined 'collaborative consumption,' and ‘the Airbnb of’ well... anything, really. Peer-to-peer marketplaces are the hot start-up space this year, reporting remarkable growth and unleashing a wave a disruptive innovation. Cutting edge technology is facilitating consumer connections and enabling trust between strangers like never before. It’s the convergence of this technology and increasing consumer confidence in online interactions that has birthed hundreds of peer-to-peer networks. While we’ve all grown up sharing offline – P2P start-ups are connecting consumers online, reinventing market behavior and bringing “sharing” to a scale never before possible. The peer-to-peer movement is changing not just what we consume, but how we consume it…” quote from Interactive 2012 – sponsored by TechCrunch.com http://panelpicker.sxsw.com/ideas/view/12606
SEE IT IN ACTION - VIEW BOXES ON DEPOSIT
TABLE OF CONTENTS
|
1)
Executive Summary - coming 2)
JeanBank Description & Vision i)
Mission Statement ii)
Company Vision iii)
Business Goals iv)
Brief History 3)
Our Markets i)
Social Media & Consumer Goods 4)
The Need - Consumer Failings/Problems i)
Weight Gain/Loss ii)
Questionable Purchases 5)
Harvard Competition i)
Pros & Cons ~ Harvard Kicker! ii)
Isn’t this the secondary market? iii)
Minor competition |
6)
JB Solutions i)
In Banks we Trust - Deposits & Withdrawals ii)
Manufacturers & Retailers 7)
Services ~ What we Do, How we Do It i)
What’s in the box? ii)
A first for 501c3 charities &
non-profit 8)
Marketing the Market i)
Consumers, Retailers, Manufacturers ii)
Marketing Groups ~ Weight Loss, Schools iii)
What’s in a name? 9)
Operations 10)
Growth Strategy 11)
Financial Analysis 12)
Closer Look: ~ Manufacturers ~ Retailer
~ Consumer |
BUSINESS DESCRIPTION & VISION
MISSION
STATEMENT
ü Create wealth for consumers from
widely held unvalued assets by evaluating, appraising and providing a means of
redeeming assets with
substantial intrinsic value through collaborative consumption.
ü Utilize social media network to
promote consumer, brand and/or retailer trends.
ü Provide services to and
chronological archives for consumers, retailers and manufacturers.
ü Empower consumers with new ways
to Save, Conserve, Recycle, Look and Feel Absolutely Marvelous!
ü
Open
the 501c3 market to virtual donations while improving & increasing
assistance to the needy.
COMPANY VISION
To drink from a
virgin spring refreshed by a billion dollars a day. Create lots of wealth from what’s now considered worthless! more coming
SEE IT IN ACTION - VIEW BOXES ON DEPOSIT
BUSINESS GOALS
Create wealth, share wealth & have fun! more coming
BRIEF HISTORY
Dad opened his first retail store in 1971 when he partnered
with a McAlpins (Genesco) buyer during the bell-bottom boom. His experience over the years as an apparel
retailer and manufacturer’s rep for major companies give him a thorough knowledge
of the primary retail industry. Mom and
Dad opened the first jean exchange in Marge Schott’s University (of Cincinnati)
Plaza in 1991 not realizing the true depth and potential of the market. I was
born in 1992. Lessons learned since
then - from focusing on the primary purchaser to establishing a working
relationship with brand name manufacturers, reps, buyers and retailers - are
evident throughout this business plan.
My twelve-year working knowledge of a unique, unexplored market (as a
cute, brilliant 7 year-old weekend jeans folder and cashier my math prowess
astounded customers) distinguishes JeanBank from our Harvard competition. ~ JeanieB
OUR MARKETS
JeanBank has a
unique and fun way of presenting one’s persona through social media
while providing
consumers with information on brand names sold through domestic retail stores.
JB also creates a
market, currently non-existent, for post-purchase consumer goods.
SOCIAL MEDIA & PERSONAL CONSUMER GOODS
|
JeanBank Market Segments – domestic ‘09 |
||||
|
NAICS |
Type |
millions |
Companies |
stores |
|
44811 |
Men |
$ 7,707 |
1,189 |
5,019 |
|
44812 |
Women |
$ 35,780 |
1,472 |
20,773 |
|
44813 |
Children |
$ 5,420 |
208 |
3,953 |
|
44814 |
Family |
$ 81,970 |
1,983 |
41,325 |
|
|
|
$130,877* |
4,852* |
71,070 |
|
45211 |
Department |
$129,293 |
65 |
6,481 |
|
44821 |
Footwear |
$ 44,005 |
1,419 |
26,903 |
|
44831 |
Accessories |
$ 25,717 |
|
22,927 |
|
45111 |
Sportswear |
$ 37,189 |
718 |
6,583 |
|
45212 |
Budget |
($124,760 not included) |
|
|
|
|
|
$248,979 |
2,202 |
62,894 |
|
|
total |
$379,856 |
7,054 |
133,964 |
|
*50 largest
apparel companies account for 65% of revenue |
||||
|
Average Revenue |
year $380B |
month $31B+ |
week $7B+ |
day $1B+ |
|
www2.census.gov/retail/releases/current/arts/sales |
||||
From birth to death most
of Earth’s 6 7 billion humans
cover their bodies from head to toe with branded apparel manufactured as gender
and age specific product lines for consumers to purchase from budget, moderate,
better or premium retailers. Significant retail revenue comes from apparel,
footwear, sportswear and accessories markets where domestic consumers spend
about a billion dollars each day on ‘soft’ goods. COST is the top purchase driver for apparel; overall, 84% of
consumers named price as the single most important factor in choosing
their purchases according to Cotton Incorporated’s Lifestyle Monitor. JeanBank promotes brand product lines and
identifies with the retailers selling them but also adds a new ‘FREE cause
you’ve already paid’ tier to the price structure by creating a market for
nearly new, previously purchased goods no longer meeting consumer requirements.
Initially JeanBank includes casual goods comprising more than 50% of the
outlined segments.
When social media
first emerged, it was a platform for communication, for sharing information and
life updates with friends and for building new connections. A shift seems 
to be happening however, as social media emerges as a place not so
much for conversation, but for sharing links and now goods and services through
collaborative consumption. There has been a noticeable drop in the amount of
conversation on Twitter, for example, and a huge rise in the amount of links
shared. JeanBank uses social media to
reach consumers searching for specific styles, brands and sizes by making it
possible for them to capitalize on past purchases no longer serving a useful
purpose. Goods, like jeans that are often identifiable by their tag &
pocket, have armies of faithful consumers that inspire and support our
collaborative vision!
TARGET MARKET (primary consumers &
collectors)
JeanBank (JB)
targets primary purchasers before they dispose of valuable goods no longer
serving a purpose. Our goal is
familiarity with potential Depositors before this occurs by being their source
for pre-purchase information on brand product lines and retailers. Consumers pay hard earned cash for goods
and appreciate original cost, perceived value, and remaining usefulness; these
are unvalued goods not without value, hidden assets with intrinsic value but no
visible market or worth. JB simply
gives them an acceptable Fair Market Value.
This portion of the JeanBank website is operational and includes
current, classic, designer, vintage and collectible items. For those who don’t wear pre-owned goods JB
plans a unique way of virtually donating to a favorite charity or non-profit
while adding their goods to the universal JeanBank pool.
For a microcosm of this target market we
suggest a stroll through any successful mall.
One such mall in Cincinnati is the Kenwood Towne Centre anchored by
Macys, Nordstrom and Dillards department stores; additionally nearly all of the
retailers cited herein maintain one or more stores there. If possible, view the businesses from the
perspective of the consumer, the manufacturer and the retailer for a better
understanding of the market. Tally all of the purchases made there in a day, week
or year and for every $100 spent the current residual value is only $0.25 – one
quarter - a value we attribute to research firm NPD Group of Port
Washington, NY (2003).
COLLECTIBLES ~ HANDMADE & DESIGNER
ITEMS ~ People collect, 
inherit and own all
sorts of goods they eventually tire of and store in drawers and closets for
lack of an alternative. Not everyone
wants to hassle with auctions, trade shows, Craigslist or such so many
semi-valuable items end up collecting dust.
JB initially targets collectors who can ‘price’ items with a fair market
value for trading or donating like jerseys, hats, belt buckles, T-shirts
featuring basketball, football, baseball, soccer, hockey, music, schools,
organizations, associations, teams, brand names, cities & locations,
comics, Disney, Harley gear, jewelry, military, the infamous and more. If you can give it a price its JeanBankable!
JeanBank’s Old Blue, for example, has
expertise is vintage clothing and specializes in denim that is bought and sold
by global boutiques and collectors at the Rose Bowl in Pasadena on the first
Sunday of each month. What’s a fair
market value for today’s vintage denim?
(see Collectible/Vintage category @JeanBank.com) In the 1980s Japanese Boom magazine
featured young fashionistas wearing high priced vintage jeans, gym shoes,
shirts, and accessories. Featured articles included boutique visit, interview
with owner, subject’s school, family, friends and a history of fashionista’s
1952 501 button-fly, buckle-back, hidden rivet $3,400 Levis and how they differ
from the ’63 model. The article
contained details on the $1,600 1st edition Air Jordan Nikes being
worn and don’t forget fashionista’s piste de résistance, a $5800 Lee
buckle-back denim jacket - that’s just one collectible market we intend to
cultivate. Curiosity brings traffic.
What could seem ostentatious in the USA may be a super-trend in China, India or
Russia as they experience Denim Booms!
THE NEED -
CONSUMER FAILINGS & PROBLEMS
JB fact: everyone
grows bigger, some faster, some more than others
WEIGHT GAIN/LOSS ~ JeanieB, of JeanBank, is a university neophyte well aware of
the ‘Freshman 15’ pitfall where new college students reportedly gain an average
of 15 pounds their first year. An
episode of Seinfeld hilariously dealt
with Jerry’s vanity and his traumatic transition from 31” to 32” Levis and
there’s traditionalist Cowboy Bob’s dilemma that follows, all confront the
common problem of weight gain and the need to replace goods. In each case, goods of significant quality
are no longer useable due to a change in consumer’s waist size. The NPD Group asked 3400 jeans owners (who
owned an average of 8 pair each) why some went unworn; 18% responded “no longer
in style”, 16% said “too large” and 48% declared “too small”!
QUESTIONABLE PURCHASES ~ A complex
combination of factors motivate consumers to buy goods and occasionally they
‘own' questionable purchases when the manufacturers tags are removed or a
receipt is lost. Wrong waist, length,
fit, style, color or gift are common errors made by consumers who often keep,
rather than return, goods that are useless to them. There is no market for
these goods and they immediately loose 99.75% of the original purchase price
regardless of brand, use or condition. THIS ENORMOUS DISCREPANCY
IS OUR WINDOW OF OPPORTUNITY!
FYI ~ As part of a classroom experiment
Canadian college student, Josh Le, wore his new Nudie jeans 330 times over 15
months before he washed them the first time.
While the average pair of jeans last 18 to 60 months (unworn they last
forever), the capacity to wear them varies greatly and herein rests a major
need for JeanBank. In general, goods
from more affluent consumers with larger wardrobes tend to receive less wear
and last longer.
TOGETHER available goods in excellent
condition create a pool of potential Deposits estimated at $1M to $50 million A
DAY (0.2% to10% of new sales of $500,000,000 a day). Very little research exists but the NPD
Group did find 42% of apparel purchases retained a significant portion of their
original quality one year after purchase.
CURRENTLY THERE IS NO SERIOUS MARKET FOR THESE GOODS SO THEY
HAVE LITTLE OR NO VALUE. That’s how our
competition sees it.
HARVARD
COMPETITION
ThredUp.com
|
date |
funding |
Amount |
Primary VCs |
Secondary VCs |
|
4 / 2009 |
start-up |
$ 300,000 |
Trinity Ventures |
Founder Collective |
|
7 / 2010 |
Series ‘A’ |
$1,400,000 |
|
High Line Ventures |
|
5 / 2011 |
Series ‘B’ |
$7,000,000 |
Redpoint Ventures |
NextView Ventures |
In 2009 a couple of Harvard Business
School students were brainstorming and saw a need for a website where adult
shirts could be exchanged. They put
together a plan that was runner-up in the annual Harvard Business Plan contest,
the Capstone of the school’s MBA Entrepreneurship curriculum. With 
$300,000 in
start-up money they launched ThredUp.com but soon realized it wasn’t working
the way they anticipated. Their initial
formula sold pre-paid USPS boxes to customers who filled them with shirts to
trade to another customer for a service charge; put one box in, take one box
out. The shirts themselves had no
perceived value they simply comprised one box.
Armed with $1.4 million they discovered
their concept was best suited for children’s clothing. Put a box of 2Ts (age 2 toddler) in and pull
a box of 3Ts out and pay ThredUp a $9 to $16 service charge plus postage. Business is good. By March/April 2011
ThredUp.com was receiving about 600,000 hits a month, had 4,500 boxes in
inventory, had shipped over one million items and was enrolling about 1,000
moms a day. ThredUp could not crack the
adult market (see Cons below) and has chosen to expand horizontally, recently
launching a mommy-baby blog called DailyThred.
PROS:
ü ThredUp provides a
simple, unique service at a reasonable price for goods with intrinsic value in
disuse
ü Mothers find nice
newborn through toddler clothing and only spend $16 including service charge
ü DailyThred
mommy-baby blog emails you often with features and Topic of The Day like Homemade
Halloween
ü ThredUp has a
decent inventory at zero cost and April traffic was up ten-fold since 10/10 –
success proves the market exists
ü New customers are
permitted to withdraw two boxes before depositing one of their own – trust and
honesty are central
ü Site is well
organized and easy to navigate but a bit too structured
CONS: (why it cannot
serve the adult market in present form)
ü ThredUp.com only
serves the least significant 7% of the apparel market and failed to penetrate
the remaining 93%
ü Secondary market
mentality – goods have little value - little incentive to maximize worth of box
through content, quantity or quality
ü Content only
interesting to a narrow 20 to 40 year old female audience
ü ThredUp does not
permit pictures of goods. A picture’s worth what??? JB believes consumers want to see what they’re getting!
ü Personnel at
ThredUp lack primary and secondary apparel market experience
ü Name is not very
memorable or informative
Harvard Kicker – JeanieB
believes the HBS grads missed the Mother Lode!
When you create and control the Perception of Value you gain the ability
to create wealth for people! The more
goods are worth the more valuable a service becomes, it’s the ‘Mother Lode
Secret’, creating wealth for 7-out-of-8 primary consumers from goods perceived
as worthless.
SEE IT IN ACTION - VIEW BOXES ON DEPOSIT
MINOR COMPETITION - Brick and mortar
competition includes for profit consignment shops and resale stores. There are
also for profit businesses that rent charity names for a small percentage,
AmVets for example (3%). Their role is
so minor we do not consider them competition.
Online auctions may include new or pre-owned goods and at this writing
Ebay has listings for 751,210 jeans of which 128,511 are auctions. Over 95% end up
at one of the big three non-profits; Goodwill, Salvation Army and St. Vincent
DePaul.
ISN’T THIS THE SECONDARY CLOTHING MARKET?
In general
secondary retailers do not recognize brand names or the price
differential in their cost. Our goal is
to access goods before they’re given to charities and non-profits comprising
most of the secondary market! People
donate goods, probably because they have no other options, using the convenient
garbage bag for transport. A fatal
curse condemns the brand identity, quality, and care - all the valuable
characteristics – to obscurity when only nameless arms or legs emerge from the
bag! Sorters empty bags placing bottoms
in one basket and tops in another with no regard for their intrinsic value. Secondary stores generally sell goods the
same way; bottoms for one price, tops another.
They do suggest a very modest tax-deduction (jeans $4-20) but they
simply give you a blank form because 501c3 charities and non-profits
CANNOT determine a Fair Market Value for any donation. As a third party JeanBank can
determine a Fair Market Value providing primary consumers with significantly
larger itemized tax-deductions and a new cash-based-perception of goods.
FYI ~ PICKERS profit by knowing the value
of goods! They shop charities and
non-profits on a daily basis for themselves, resale shops, consignment shops,
flea markets, online sales and auctions, etc.
Pickers hunt ‘the good stuff’ and as a result these goods will be sold
within an hour of being put on display.
On a good day pickers may shop 10 to 15 different stores. We know Japanese buyers who rent a van on
one coast and drive cross-country picking and shopping as they go. At turn-around they’ll ship those goods home
and head back across the USA or turn the van over to another team. Keeping JeanBank cashless (at least to
start), except for donations, eliminates the pickers who make a living
understanding the Perception of Value in cash terms.
JB SOLUTIONS
IN BANKS WE TRUST
SEE IT IN ACTION - VIEW BOXES ON DEPOSIT
JB CLOTHING BANK operates like a collaborative
bank virtually accepting Deposits and Withdrawals of Savings Boxes. JB controls the flow of credit and the
Perception of Value by treating unvalued goods as assets, appraising them much
as one would durable goods like pre-owned cars where resale value is based on
original cost, wear and the appeal of a particular brand or style (three
pre-owned cars sell for every new one). Depositors determine a cash-based value
for collectibles even though no cash trades hands; the Perception of Value is framed
in cash.
WHAT’S IN THE BOX? 
HOW CONSUMER DEPOSITS & WITHDRAWALS
WORK ~ JeanBank appraises post-purchase goods and credits the Depositor’s bank
account for their replacement value, which can be redeemed or
transferred. Once a box has been filled and a Fair Market Deposit Value
determined and accepted the Depositor can use their JB balance to Withdraw
another’s goods, donate the balance to a charity/non-profit or transfer to
friends or family members – collaborative
consumption.
The Deposit process is complete and works well.
(see Available Savings Deposit
Boxes at JeanBank.com)
For consistency and to eliminate the
variable of postage JeanBank initially utilizes the medium size United States
Postal Service flat-rate box as our transaction vehicle (as does our
competition). The USPS/JeanBank Savings
Deposit Box holds a mini-wardrobe containing four pair of adult bottoms or two
pair of bottoms and four tops, and so on up to Box 262, which holds 27 assorted
children’s items. This box ships for about $10 to all states, all U.S.
possession and all military addresses served by the US Postal Service around
the world and eliminates distance and weight as expense variables. Postage paid through PayPal, for example, makes
international shipping easy and brings global markets into active play.
JB is a friend, source and service to
retailers and manufacturers. Industry
databases with significant contact information are readily available as is
501(c) database. In addition to email
and zip code information that can be used for direct marketing, JeanBank forms
a personal profile about consumer habits - favorite brands, dream brands,
favorite retailers, dream retailers, style preferences, changes in physical
measurements, household makeup, and more.
DOWN THE ROAD ~ JB sees consumers
shopping stores and boutiques around the world live from the comfort of
home. Global sales staffs equipped with
micro-cameras taking virtual customers through their stores on personal
shopping excursions. A boutique in Osaka or maybe Paris, each is as close as
next-door. JeanBank will act as a
facilitator and guarantor for both.
SERVICES ~ WHAT
WE DO, HOW WE DO IT
OUR GOAL IS PARITY!
A FAIR EXCHANGE OF GOODS OF SIMILAR VALUE
View Available Deposits @ JeanBank.com
SEE IT IN ACTION - VIEW BOXES ON DEPOSIT
CREATE WEALTH ~ we make worthless worth a
Fair Market Value. (see Cowboy Bob)
Note: JB Clothing Bank ~ mechanically
this feature is complete and works very well. It is the most difficult part of the website besides jean
tweets. It provides gender and age
specific product lines and related MSRP price ranges that are part of Deposits
and retailer, manufacturer databases.
NO CASH ALLOWED! People risk nothing they
can use and recycle money they’ve already spent. JB welcomes all nice bottoms, tops, sportswear, footwear,
outerwear and accessories consumers no longer wear or use in any age, gender,
brand and item combination! JeanBank’s formula (or Depositor) determines
Savings Box Deposit Value.
|
M$RP x CONDITION % x INTEREST = DEPOSIT VALUE |
|
|
M$RP |
Manufacturer's Suggested Retail
Price - new purchase price range for each product line item |
|
CONDITION% |
Remaining useful life - New With
Tags to Work Quality (Exceptions abound) |
|
INTEREST |
Desire ~ Demand for your brand,
style, size, etc will eventually determine the Deposit Value (coming)
currently figured at 100% |
SEE IT IN ACTION - VIEW BOXES ON DEPOSIT
M$RP ~ Included in the beginning
JB database are M$RP ranges taken from retail brands carried by Macys, Abercrombie,
Nordstrom, Dillards, Diesel and 7 for all Mankind by gender, age, item and
department (product lines) - M$RP ranges come from company websites. The
original retail price or Depositor’s best guesstimate determines Deposit Value
regardless of cost. Deposit Values are
suggestions and can be changed by Depositor.
CONDITION ~ How much wear
have goods experienced – how much life have they lived?
|
CONDITION |
PERCENTAGE |
APPEARANCE |
|
Unique |
100% |
Depositor sets value |
|
New With Tags |
80% |
MSRP retail tags on/with |
|
Excellent |
70% |
Like new |
|
Very Good |
60% |
Little visible wear |
|
Good |
50% |
No holes or stains |
|
Average |
40% |
Normal wear, no fraying |
|
Work |
20% |
Decent but worn |
This value will
float
INTEREST ~ Demand & Desire rise and
fall so Interest is a floating variable.
Brand, style, waist, length, and color – all are variables that will
ultimately affect the Deposit Value (see Cowboy Bob – appendix). Float will take time to materialize so all Interest
at startup is calculated at 100% (except Cowboy Bob’s Box 382 (150%) and Box
262 (44%)). (Inflated values for
founding Deposits)
SEE IT IN ACTION - VIEW BOXES ON DEPOSIT
HOW JEANBANK MAKES 501c3 MONEY WHILE INCREASING AID TO NEEDY – personalizing the
contribution
JB adds a kicker
to cash donations by affording donor the additional satisfaction of providing
clothing to someone or family in need.
DONATIONS, CHARITIES & CELEBRITIES ~
JeanBank makes it possible for 
any of the one million
501c3 groups to virtually accept donations and turn them into cash by giving personal goods displaced by new purchases a
Fair Market Value (FMV) based on intrinsic qualities and demand. When a third party accepts FMV the donation is
confirmed. This adds Deposits from consumers who don’t wear
pre-owned goods and makes it possible for cash donors to give to their favorite
charity or non-profit while personally helping a family or individual
obtain needed clothing as a bonus. It’s
a simple concept but has the potential to help millions of Needy.
One means of raising money for good
causes is for JeanBank to sponsor charity auctions of jeans and goods donated
by celebrities. JB also promotes causes
like Lee’s Denim Days to raise money for breast cancer research or Jeans for
Genes for children’s genetic research – two of the many worthy projects that
allow employees to wear casual jeans to formal offices for a donation.
MANUFACTURERS & RETAILERS ~ “Macys
‘Thanks for Sharing’ and ‘Believe’ campaigns raise $16.25 million for charity”,
“Nike gives $37.3 million to 4,500 charitable organizations”, “Lee
National Denim Day (VF Corp) raises $52 million for Breast Cancer Research”,
“Kohl’s gives $3.25 million to non-profit youth services”, “Levi Strauss
creates a $100,000 denim insulation fund” – companies ‘give back’ to the
community in many positive ways and one of JeanBank’s features enables virtual
donations to 501c3 groups; raising money and clothing the needy. Hmmm, wonder what co-operative projects
JeanieB will cook-up with the Big Boys?
A cash donation bonus!
THE JB CLOTHING BANK A
501c3 cannot determine a FMV for donations so JB becomes a middleman
determining FMV giving consumers who may not wear pre-owned items a reason to
donate online to a favorite group.
There are one million 501c3 tax-exempt groups in the USA but generally
only three big non-profits control apparel donations, usually made in garbage
bags, assigning similar goods equal values; bottoms one price, tops another;
quantity but no quality; free to charity and of no value to donor, that
is, donor receives only a blank form for goods, no remuneration.
QUALITY not QUANITY ~
JeanBank takes the opposite approach! As
can be seen in Available Deposits,
better goods packaged in a medium flat-rate USPS box are a Savings Deposit
valued by JeanBank at FMV and added to the Universal JeanBank Pool but
physically stored by Depositor. Any Savings Box can be virtually donated
to any favorite 501c3 charity, church or non-profit. JB affords groups, actually any group not having the time,
manpower or space for a clothing bank of their own the means to create one
online within JeanBank utilizing a universal pool of goods. One possible co-operative scenario (it could also work as an auction) might go
as follows: (note - any 501c3 can Sponsor a
Needy Request)
DONOR BUDDIES - (‘Needy’ is a
descriptive term likely to be socially incorrect)
1) Apparel Donor
A virtually Deposits Savings Box into universal JeanBank pool and donates FMV
value of Box to, say, My Church
i)
Option A – My Church transfers FMV value to
Needy organization, family or individual who can select goods according to
needs
ii)
Physical box
remains with Depositor until its Withdrawn and shipped to recipient redeeming
their JB balance
iii)
3rd party
Withdrawal and acceptance of Savings Box validates FMV
2) Cash Donor B
buys A’s virtual FMV value from My Church for agreed price, say $100 ~ call it
a FMV Gift purchase – Option B
i) Donor B does not take physical possession of
Savings Box which remains with Donor A and Available for Withdrawal from JB
Pool
ii) Maybe Donor A now has $100 FMV
tax-deduction from My Church based on JeanBank appraisal (no 501c3 can
determine FMV)
iii) Donor B purchases and
owns a $100 virtual ‘FMV Gift’ donation from My Church
iv) Gift can be used to obtain ‘new’ goods for themselves from
JeanBank Pool – no tax-deduction
3) Donor B can
virtually give ‘$100 Gift’ to satisfy Request of Sponsored Needy added to JB
pool by any participating 501c3
i)
$100 FMV Gift is credited to selected Needy’s account to be redeemed by
Withdrawal of Savings Deposit Box of choice from JB pool
ii) Maybe Donor B now has $100 tax-deduction from Needy's 501c3
Sponsor
Redeemed:
Savings Deposit Box 735 = $62 Withdrawal Needy JB balance $38
ü
Advantages to all, Donor Buddies
combined effort raises money for My Church and gives needed clothing to the
Needy
ü As
a bonus Donor B ‘Gifts’ a selected Needy fulfilling Needy’s Request for goods
(of their choice) while putting currency in My Church coffers
ü
Donor B can personalize giving to a
specific human being in need by purchasing ‘Gift’ from My Church en lieu of
tax-deductible contribution (itemized only)
ü Donor
B could transfer ‘Gift’ to any sponsoring 501c3 including My Church’s Needy for
$100 tax-deduction
That's it in a
nutshell! Donating Buddies Win,
Win! Charity/non-profit raises money
and Needy receive needed clothing as a result of JeanBank participation. By creating a universal pool of goods with
Fair Market Values the chances of finding what you need increases greatly.
SEE IT IN ACTION - VIEW BOXES ON DEPOSIT
|
Retailers |
|
Macys $25B |
|
Gap/Old Navy $12B |
|
Nordstrom $10B |
|
Sears $28B |
|
Nike $18B |
|
Neiman Marcus $5B |
|
Dillard’s $7B |
|
Kohl’s $16B |
|
Polo Ralph Lauren $5B |
|
Limited brands $8B |
|
Saks $3B |
|
Hudson Bay $3B |
|
Aeropostale |
|
Guess? $2B |
|
The Buckle |
|
Brown Shoe $2B |
|
FootLocker $5B |
|
Sears $35B |
|
JCPenny $20B |
|
Mervyns $2B |
|
Abercrombie Fitch $3B |
|
Big 5 Sports |
|
New York & Co |
|
Beals $1B |
|
Belk $4B |
|
Ann Taylor |
|
American Eagle |
|
Urban Outfitters |
|
Footlocker $5B |
|
Manufacturers |
|
VFCorp $8B |
|
Levi Strauss
$6B |
|
Liz
Claiborne $4B |
|
Gap/Old Navy
$12B |
|
ASICS |
|
Benetton |
|
Billabong |
|
Diesel |
|
Columbia |
|
Eddie Bauer |
|
Tommy
Hilfiger |
|
American
Apparel |
|
Adidas |
|
Fubu |
|
Reebock |
|
Banana
Republic |
|
Hugo Boss |
|
New Balance |
|
Nike |
|
Umbro |
|
Perry Ellis |
|
Polo Ralph
Lauren |
|
Quicksilver |
|
Brooks |
|
Lucky |
|
Timberland |
MARKETING
There is an advantage to being ‘first’ with a totally new concept. The JB Clothing Bank provides a new, socially relevant public service that helps nearly everyone from the needy to the wealthy as they cloth themselves, their families or acquaintances without spending money for new goods. Google “swap kids clothes” and a plethora of media attention for ThredUp.com is apparent. It has been featured on ABC, NBC, CNN, FOX, CNBC, etc. plus there are numerous articles to a niche website serving less than 7% of the population. The goal of nineteen-year-old JeanieB is to dominate the other 93% through Inspiration and Priceless Word-of-Mouth Marketing by her twenty-first birthday.
With so much
happening online, the concept of marketing has shifted from traditional advertising
to word of mouth and social marketing.
It relies on the power of influence and trust to effectively reach out
to people within different spheres that are difficult for manufacturers and
retailers to penetrate. Our social
media marketing tools include blogs, Twitter, Facebook, Digg, Reddit, MySpace,
and YouTube and will be targeted for penetration and user visibility but
because marketing and momentum are so important only a nameplate shell is
currently in place with each awaiting professional direction. Social networks provide the freedom for
JeanBank to increase outreach by using these platforms creatively to integrate
consumers, brands and retailers through new avenues of expression and exposure
but we intend to do it with forethought and good planning.
SALES STRADEGY –
see Closer Looks in appendix
Consumers crave
pre-purchase hype and post-purchase exhibition so JeanBank embraces existing
marketing and provides a ‘reason or excuse’ to show-off goods (and oneself)
while providing detailed information, feedback, personal reviews and
endorsements on brands and the retailers that sell them. We also sell a service to groups: weight
loss industry, schools, uniformed workplaces, etc. Consumers trust peer reviews
or personal interactions more than advertisements. This information is not currently available.
The average consumer disposes of 68
pounds of clothing each year, according to Levi Strauss. JB promotes ‘green programs’ like American
Eagle’s recent two week 20% recycling discount if you bring in jeans you no
longer wear. JB can develop and market
additional Green programs by working with retailers and manufacturers.
Retailer identity is
carefully crafted so JeanBank provides a virtual rendition of stores for
consumers to visit.
JB features brand
product lines including M$RP by department or specialty. Retailers have two priorities: 1) keep
current customers happy and 2) attract new customers. We market ourselves as a
friend and ally to retailers and sell them support services.
Manufacturers live and breathe
brand identity so JB sells the ‘company product lines’ to consumers by gender
and age. By actively using the MSRP
(manufacturer’s suggested retail price) for several features we help establish
a brand’s identity and position (price points) in the market plus we provide
consumer generated endorsements, reviews and helpful information on
availability. We market ourselves as a friend and ally to manufacturers.
WHAT’S IN A NAME? Does it tell you what we do? Is it easy to remember and memorable? Is it cute?
ü
Is it a Bank for jeans and maybe more?
·
Jeans and denim in department stores account for
20% of floor merchandise, 20% of apparel revenue, 40%+ of advertising – denim
is a customer magnet for any store
ü
JeanBank/GeneBank - cute play of words
o By
association, consciously and/or sub-consciously, with universally recognized Gene
Bank where Deposits of Human
DNA information, The
Secrets of Life Itself, are stored. Blue jeans contain and display each Persona’s
Source of Life.
MARKETING
GROUPS: WEIGHT LOSS INDUSTRY, SCHOOLS
$55 billion a year -
JB PERFORMS A MISSING & NEEDED SERVICE
Weight Watchers, Herbal Life,
Nutrisystem, Jenny Craig, Smart for Life, LA Weight Loss, Spark People, Joy
Bauer Diet, Atkins Diet, South Beach Diet, etc. - all promising to change your
waist measurement and there’s no better way to
show off a slimmer you than ‘new’ clothes especially a new pair of blue jeans
(and no better place to shake your new jean assets than with a JB video
jean tweet), but how much can or should you spend on new clothing? And what about clothes that are now too big?
JB Clothing Bank appeals
to anyone who gains or looses weight and can no longer wear goods they
own. We begin by marketing our service
to groups such as weight loss organizations and schools where rapid changes in
physical size are expected.
The
expense of buying new goods like jeans can be a psychological barrier to weight
loss, especially for those on a modest budget, yet this multi-billion dollar
industry offers no support and no options for a dilemma each person hopefully
encounters multiple times - spend money you can’t afford to look good, or wear
cheap?
You’ve
sacrificed for months and want everyone to see the new you. The ‘less-overweight than before’
person wants to show off a slimmer body and may splurge on better goods only to
feel guilty about the expenditure or may be forced to opt for economical,
sub-standard (for them) temporary goods that do little for one’s
appearance and self-esteem. It’s a dilemma JB solves.
DEPOSITS – CLOSED GROUPS ~ In general, all Deposit boxes are available to anyone, anywhere and go into the Universal JeanBank Pool but there are times when you want to keep goods within a group. School uniforms, for example, and large groups like local weight watcher meetings can save the expense of postage by keeping transfers in-house. We suggest one day a month as in-house JeanBank Day.
OPERATIONS - Save ~
Conserve ~ Recycle ~ Look & Feel Absolutely Marvelous
Current site status (dark – password protected - under development)
COMENSING OPERATIONS
– ideal launch is mid-January 2012
Our Jean Exchange store at Traders World Market,
Monroe Ohio, carried 10,000 jeans, mostly Levis, to serve the 25,000 customers
we engaged every weekend and we turned inventory every six weeks or so (we also
did a 2-for-1 trade for many customers).
Start-up – Mid-January 1012 an ideal test
month begun by challenging members of fifty 501c3 groups to add two boxes each
for the Needy. JB anticipates a turn of
inventory/Savings Deposits every six weeks will offer a sustainable variety and
selection of goods for all. Each box
may contain 4 to 25 disparate items that can be displayed separately by gender,
age, item, style, material, color and condition. Categories are similar to Ebay but searching for goods more
definable. Current core db is basic and complete with drop down menus but needs
more product lines (data entry), a new site design and expansion to include
planned consumer, retailer and manufacturer interactions prior to launch. Databases for manufacturers, retailers and 501c3s
will be purchased from industry sources.
IMMEDIATE OBJECTIVE ~ JeanBank.com needs
$10-15,000 to launch (programmer, designer, social media expert, WordPress
expert and PR firm) on a shoestring.
Industry support should be available after launch if we are able to keep
the site free-of-charge as a public service. Knowledge, experience and recent competition have convinced us an
enormous, undiscovered market lies within our grasp. JeanBank.com can serve the Needy to the Wealthy as everyone joins
in a collaborative consumption effort.
SITE DESIGN ~ THE NEXT STEP JeanieB has
been experimenting with the Wordpress ‘Blue Jeans’ template exploring
content, looks and function but a ‘from scratch’ new and different site may be
a necessity. SIMPLICITY of design our
first goal (K.I.S.S.). Take a moment to explore our categories to Save,
Conserve, Recycle, Look & Feel Absolutely Marvelous and you’ll get a feel
for our Green content.
EXPERIENCE – Father and daughter have
over 50 years of primary and secondary apparel experience as retailers and
manufacturers’ representatives.
APPENDIX
MANUFACTURER
CLOSER LOOK ~ LEVI STRAUSS, VF CORP
NOTE: Brands generally rebate 5 to 8% back to retailers for co-op
advertising. This money traditionally
went to newspapers but their demise has retailers scrambling for new exposure. It
may represent a significant source of income for JeanBank.
PRODUCT LINES include 2 genders,
4 ages ~ all are included in JB
database
|
BOTTOMS |
TOPS |
FOOTWEAR |
OUTERWEAR |
ACCESSORIES |
|
Denim jeans |
T-shirts |
Athletic sneakers |
Sport coats |
Headgear |
|
Non-denim jean cut |
Button shirts |
Casual loafers |
Jackets |
Belts, buckles |
|
Casual office |
Pullovers |
Boots |
Car coats |
Eyewear |
|
Athletic wear |
Sweat shirts |
Sandals |
Long coats |
Jewelry |
|
Skirts |
Sweaters |
Sports (ie; golf) |
Specialty |
Bags |
|
Bibs/overalls |
Dresses |
Specialty |
|
Music |
|
Maternity |
Specialty |
|
|
Specialty |
|
Specialty |
|
|
|
|
Each brand has a separate
M$RP for each line that may include numerous sub-categories
ü Male and Female
cuts ~ product lines are produced to fit two genders
ü Adult, Teen,
Youth, Infant ~ product lines produced for four age groups for a total of eight
departments
ü For each of eight
departments manufacturers usually focus on one or more product lines
ü
JB database includes multiple products lines for each department –
this db is complete! (so if Levi Strauss sells
in budget, moderate and better stores, for example, each of eight department in
each type store could have as many as seven different M$RP ranges for bottoms,
six for tops, five for footwear, four for outerwear plus multiple accessories
lines)
LEVI STRAUSS (#2 in sales - $6B) sells
one brand name with incrementally priced goods.
Take denim jeans for example:
Four different Levis shoppers, four MSRP price ranges and vintage
Levis add a collectible fifth market.
|
BRAND LINE |
M$RP RANGE |
RETAIL STORES LIKE |
|
Levis Signature line |
$20 - $25 |
Walmart |
|
Levis Traditional jeans - 501,
505, 517, 550 |
$40 - $60 |
most Department stores |
|
Levis fashion and ECO lines |
$50 - $110 |
most Department stores like Macys |
|
Levis Capital E line |
$125 - $225 |
most Department stores like Macys |
|
Vintage Big E & Collectibles |
$50 - $54,000 |
Collectors |
VF CORP (#1 in sales - $8B) sells 26 different brand names for the same markets. (much of Gap revenues from retail operations)
VF premium jean lines include 7 for all Mankind, Nautica and
Rock & Republic and their Wrangler Pro Rodeos are
considered by many as the only true cowboy jeans in existence. You’ll find Rustler jeans at Walmart
while vintage Lee denim brings just as much as vintage Levis.
As each manufacturer grows they make a business decision to expand
product line horizontally or vertically in a given market. They may start with a denim jeans line and
add other bottoms or they may sell only jeans and choose to add tops. JB services all big and small brands and
their individual product lines.
RETAILER CLOSER
LOOK - NORDSTROM
JB fact: Start
with the best, you’ll get the rest
JB knows paying $300
for a pair of jeans may impact more affluent consumers just as deeply as a $30
pair of jeans impacts someone on a modest budget. JB provides a neutral atmosphere that respects and maintains the
cost differential of goods. We haven’t
included budget/discount retailers because goods tend to be worn more often and
more vigorously than other segments but JeanBank offers the same benefits
proportionately priced to all.
What retail distribution channels do
manufacturers use to reach consumers? Why do consumers buy from certain
retailers and do they buy online?
According to Bloomberg.com (12/23/2010) the Internet now accounts for
19% of all apparel sales (up from 3% in 2003).
NORDSTROM Inc., Seattle,
Washington ~ 2009 sales: $8,828,000,000
~ # stores: 159
|
Brand name |
MSRP range |
|
Alexander Wang |
$380 to $440 |
|
Dulce & Gabbana |
$325 to $425 |
|
Robert Rodriquez |
$325 |
|
St. John Rivet Blues |
$280 to $320 |
|
Current/Elliot |
$265 to $300 |
|
Theyskin Theory |
$265 to $300 |
|
Goldsign |
$210 to $290 |
|
Vince (Second Skin) |
$210 to $240 |
|
Aulo Brooke |
$195 |
|
Habitual |
$195 |
|
Paige |
$190 to $240 |
|
Burberry Brit |
$190 to $210 |
|
Tory Burch |
$185 |
|
Ray & Bone |
$185 to $210 |
|
PRPS |
$180 to $210 |
|
AG Adriano |
$150 to $250 |
|
True Religion |
$150 to $250 |
|
Citizen of Humanity |
$150 to $250 |
|
7 for all mankind |
$150 to $250 |
|
J Brand |
$150 to $220 |
|
Mother |
$170 to $210 |
|
CJ Cookie Johnson |
$150 to $200 |
|
Joe’s Jeans |
$140 to $220 |
|
Lafayette |
$150 to $180 |
|
Hudson |
$140 to $170 |
|
Not Your Daughter’s Jeans |
$90 to $140 |
|
Blue Essence |
$90 to $130 |
|
Kut |
$50 to $90 |
|
Jag |
$50 to $80 |
|
Vigorss |
$35 to $50 |
Nordstrom is an upscale department store that
carries 32 different women’s denim brands all included in the initial
JeanBank database. You’ll notice
27 premium brands have a minimum price exceeding $135 (premium jeans for
adults cost over $100 and for youth over $70). It is
an erroneous misconception to believe consumers purchasing these goods
will only buy ‘new from the store’.
The expense of buying premium goods creates the same demand in
upper income consumers as the rest of the market and premium goods tend to
last longer because they’re worn less often due to larger wardrobes. Targeting goods from the original purchaser increases secure,
positive feeling of exchange due to familiarity and trust factors.
CONSUMER CLOSER
LOOK ~ TRADITIONAL
(Interest
explained @ bottom)
Traditional consumers generally purchase the same brand and style for a significant span of their life.
Traditional goods account for about 65% of Levi Strauss’ production and represent significant potential Depositors
TRADITION CONSUMER: Cowboy Bob (Box
382) Lifelong Loyalist of Levi Strauss (see Available Deposits)
Name:
Bob Winters, age 34, married 3 years
Home: Brownwood, Texas
Occupation: cowboy/rancher
Wears: Levi’s 517 traditional western
bootcut jeans ~ current size: 34”W 36”L
(extra long rarely stocked in quantity)
Retailer: buys four pair
at a time online from Levi.com for $160 – reaching a state of disuse the
residual value falls to $0 – no market
JeanBank Deposit Value: $138* including Interest
Bob began wearing Levis
when he was 15 and by 22 he filled a 32” waist. He buys three pair for work and one pair for Saturday night and
wears nothing else. Soon after his 30th birthday four nearly new
32”s ended up on a shelf after becoming suddenly tight. Bob assured himself the increase was only
temporary. Four years later he moved on to a 34” waist and out the door went
the four 32”s but to where and for what?
No options currently exist for consumers having goods with intrinsic
value like Cowboy Bob’s 517 Levis. He
has to give them away for nothing.
One pair, Bob’s
Saturday night Levis, are like new jeans costing $40 everywhere. Would Bob pay $28 cash for like new Levis in
the proper size? Indeed, he’d save 30%
and speaking from years of experience it’s an easy sale given
access to the primary shopper. Bob’s Perception of Value should be $28, not
worthless. At JeanBank.com Bob’s total Savings
Deposit is worth $138*, not in cash but as an appraised replacement cost he can
use to obtain goods of similar value.
The key is access to the primary consumer, impossible before the
Internet and now only a scan away. The
Perception of Value is built on tangible factors logically appraised after
meeting JeanBank criteria. Depositor
Bob has a Fair Market Value Perception the equivalent of $138 cash from
perceived worthless hidden assets. Interest
in Cowboy Bob’s Savings Deposit Box 382 will be high.
*Interest: several
variables add additional value to Box 382
+14% -Style: high demand (2nd
only to 501) for Levi’s 517 bootcut
+12% -Length: extra long is hard to
find, four pair a rarity
+10% -Waist: most popular size for
men and women (size 11/12) consumers
+ 8% -Set of goods: having four
matched pair of 517s raises Interest
+ 6% -Color:
the dark blue denim is currently in high demand
+50% - increase in value due to High Interest
Bob’s original purchase represented less
than 1/6,000,000th of an average day’s purchases. To the best of our
knowledge, no one has determined a FMV for goods with intrinsic value prior to
JeanBank.
SEE IT IN ACTION - VIEW BOXES ON DEPOSIT
business plan in draft state 1/22/12 minus financials ~ pre-release ~ completion expected by 2/28/12