Executive Summary

Low Cost Sailor (from hereon LCS)  and Wallis&Gill (from hereon WG) will agree on a way to produce and sell the WG Hummer mast top wind sensors and adjuncts. The first iteration of this proposal is this template of a sample proposal, where LCS will produce YouTube and Instagram content promoting the LCS Hummer and WG will provide tools, machinery and training as well as produce in the EU 32 sensors ready for sale. All sales will be handled via an online LCS site. €100.00 profit per unit. It is estimated that the Hummer unit costs €70.00 to manufacture including €20.00 of labor. Suggested retail is €170.00 + VAT if applicable.

Joint Venture Business Description

This joint venture (from hereon JV) will be dedicated to the online sale of low cost high value boat mast top wind sensors and accessories. The products include the mast top wind sensor, optional WiFi to N2K adaptor (to avoid running N2K cable up the masts of sailboats), as well as a mini multi function display (MFD) that has a high quality 2.4 inch sunlight readable and water proof amoled display that also serves as a WiFi to N2K/NMEA0183 relay. The products will only use CE and FCC approved radio devices. The product must be marketed as CANBUS N2K compatible and not as a N2K device or NMEA certified device. The first profits from gross sales of €20,000.00 will be distributed 70% to LCS and 30% to WG. After that initial sales target has been met, profits will be distributed 60% to LCS and 40% to WG.

Market Analysis

B&G, Raymarine and Garmin dominate the market with excellent products at high but reasonable costs. The low cost market even including China does not exist beyond weather station anemometers! This leaves plenty of room for low cost alternatives to a product that is prone to low lifespan and that is future proofed by inclusion in the digital yacht ecosystem.

Products and Services

  • Hummer
  • Easily self serviced, marine environment, ceramic bearings, mast top wind sensor.
  • mMFD
  • Mini multi function AMOLED display. Multiple screen widgets for wind and other N2K data. Including graphics and traditional wind displays. Also works as bridge between WiFi/N2K and NMEA0183 data.
  • WiFi2N2K
  • WiFi to N2K adaptor. Allows for simple non n2K backbone connectivity to mast top wind sensors.
  • Installation Service
  • Optionally provide installation services via approved providers.

    Marketing Plan

    LCS YouTube engagement. Provide no questions asked return or exchange policy. Provide free one time lightning damage replacement (must provide valid insurance claim on other lightning related same boat damage.)

    Logistics and Operations Plan

    LCS will provide 4x6 meter work area with power, lighting and one large work table and one small 1.2m x 0.6m table or closet space for 2 3d printers to operate. Work area must be available 24x7x365.  

    WG will provide all required tools, 3D printers, all supplies, all parts and training for the full assembly and testing of 32 Hummer units.

    WG will be on site for at least 15 days during the initial fabrication of these 32 units.

    LCS will cover costs for rental vehicle and modest housing (AirBNB etc) for these 15 days.

    After initial 32 unit run. WG will continue to help ship all electronics and other required parts from China and work with LCS to improve products. LCS will have to provide labor for the assembly and shipping of products.

    Financial Plan

    All sales will be handled via an online LCS site. It is estimated that the Hummer unit costs €70.00 to manufacture including €20.00 of labor. Suggested retail is €170.00 + VAT if applicable.

    Very low risk investment. LCS will soon know, based on online engagement stats, site traffic and orders, if their investment in media content, shop space, car rental and accommodation expenses is working.

    32 units will provide an estimated profit of €3200.00 that should cover all costs involved by both parties in this trial run (profits distribution of €2240.00 for LCS and €960.00 for WG).