Project by: Mark Kozhin,
High Concept Statement:
A discovery and purchasing consolidation app for consumers, producers and retailers starting with food and perishables. Think of it as a more useful and better version of Groupon combined with features of a POS (Point of Sale) system.
Need or Demand:
There is a disconnect and significant inefficiencies for discovery and delivery of products (i.e. perishables purchased daily) through the supply chain, from producer to consumer. The retailer still controls what products, when and where consumers can purchase; the producer is limited to some degree by what the retailer wants to carry and they both have inventory control inefficiencies. Often a producer has some minimum qty that needs to be purchased and the retailer is responsible for carrying products that are most profitable and with the highest churn. The consumer often ends up paying more, limited to what products are available and may often find products sold out.
Product / Service / Solution:
Our App, by bundling/combining orders within or across buildings in close proximity and having relationships with retailers/cafeterias we can resolve many of these “needs.” Min quantities can be met, producers and retailers can better control inventory (less waste) and consumers can get the product they want, when and where they want it and potentially at a discount. In addition, other services such as reward programs will be created to benefit all parties. The idea came about due to Mark’s 5+ years experience in retail and wholesale distribution in both packaged goods and perishables. Mark owned a number of retail stores and had product distribution to retailers and cafeterias. In addition, Mark has relationships with local bakeries and other such producers/distributors in NY. As an example, we had a line of health bars that certain customers loved. When we closed our retail operation, the corporate customers (including one very large corporation) continued ordering for their in house cafeteria. Shortly after though they had to limit orders due to internal distribution issues even though end users continue asking for the products. Direct ordering from the producer isn’t effective due to min. qty requirements. With our app, the consumers can order individually and once critical mass is met the producer is incentivized to ship, the retailer has all pre-orders and essentially “warehouses” the the product for the customer and the customer just needs to pick up. It’s a win-win for all parties. Mark currently maintains a large database of customers and potential retail partners.
Value to Consumer: order products direct from producer at potentially discounted prices; discover products that retailers may have otherwise not carried; convenience. Value to Producer: access to a larger base of customers; better inventory/production control; higher profit margins. Value to Retailer: Better inventory management; payments control; less waste of space; access to more products in demand.
Indirect competitors include reward program companies (i.e. Appcard), POS systems (Adello) and other award/purchase app products that primarily cover one portion of the supply chain.
All sales are conducted through the app so we take the orders and a percentage of the sale (10-20%). In addition, we will offer paid programs for producers and retailers to gain access to promoting to our customers. Finally, we’ll have extensive purchasing data that can be leveraged further to benefit all parties.