Tie your fundraising pitch with this discount store game!

Issue

Meet Sarah, a working mother of two children. She’s always on the lookout for bargains and discounts on everyday items to make ends meet. On a recent shopping trip to the mall, Sarah was disappointed to find that prices at most stores were too high even after discounts.

This is a problem faced by many people. The rising cost of living and inflation have made it difficult for individuals and families to shop without damaging their finances. People’s limited budget has made them more conscious about their spending.

The problem is very relevant, because the cost of living continues to rise, and there is a need to find affordable solutions. People are looking for a way to save more and get value for their money. It is no longer enough for stores to offer discounts; Customers also expect low prices on regular items.

The current solution to this problem is discount stores like Walmart and Target. Although these stores offer discounts on many items and are affordable, people are still not completely satisfied.

Discount stores have failed to provide a comfortable and organized shopping experience. The aisles are often crowded, making it difficult to navigate, and the general atmosphere is not conducive to a pleasant shopping experience. Additionally, discount stores often have long lines at checkout, which added to customer frustration.

The problem exists because there is a gap in the market that has not yet been filled. Discount stores have taken care of the pricing aspect, but it is necessary for a complete shopping experience that is both affordable and enjoyable. This is where we come in.

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Solution / value proposition

At Discount Store, our solution to the problem of expensive household items is to provide our customers with high quality products at affordable prices. We believe every household should have access to quality items without breaking the bank. Our wide range of products caters to customers of all ages, backgrounds and lifestyles.

We source our merchandise from reputable brands and manufacturers to ensure that our customers receive the best value for their money. By offering high quality products at affordable prices, we have created a loyal customer base that keeps coming back for more. Our solution is not only affordable but also convenient – our customers can shop for all their household needs in one place, saving them time and money.

As we grow, we are constantly looking for ways to improve our solution to better serve our customers. We believe our dedication to customer satisfaction and commitment to quality will set us apart from our competitors.

Our solution solves the discussed problem of expensive household items. We have created a one stop shop for our customers to find everything they need at an affordable price. Our solution is so good that our customers keep coming back for more and more and recommending us to their friends and family.

After using our solution, our customers will feel satisfied with their purchase, knowing that they received the best value for their money. Our commitment to quality ensures that our products will last, providing peace of mind to our customers.

Our solution is amazing because we’ve found a way to offer high quality items at an affordable price, making household essentials accessible to everyone.

• We offer a wide range of products to cater to customers of all ages, backgrounds and lifestyles.
• Our merchandise is sourced from reputable brands and manufacturers to ensure that our customers receive the best value for their money.
• We have created a loyal clientele who come back for more and recommending us to friends and family.
• Our commitment to quality ensures that our customers are happy with their purchases and have peace of mind knowing their products will last.

Our journey to find the solution was difficult, but we were driven by our passion to build a business that would make a difference in people’s lives. We spent time researching the market to identify the gap in the market and found there was a need for affordable essentials.

After approaching our wares from reputable brands and manufacturers, we conducted extensive market research to determine the optimal price for our products. We then tested our solution by launching our store and received positive feedback from our customers, confirming that we were on the right track.

We are committed to continually improving our solution to better serve our customers and meet their evolving needs.

Market validation

Our discount store aims to meet growing consumer needs for affordable yet quality products. Our market validation shows a potential TAM of 0 billion in the US alone, which can reach trillion globally.

In our targeted market segment, we have found that consumers are willing to spend an average of per visit to our store, with a sales cycle of approximately 2 weeks. Additionally, our research indicates that our competitors have an annual turnover of billion, underscoring the profitability of the industry.

Starting a business in this market is a good idea as there is a high demand for affordable and quality products which is made worse by the current economic situation. With our competitive pricing and product variety, we are well positioned to take advantage of this opportunity.

The market has grown steadily, with an expected growth rate of 3% per year. Additionally, due to the current pandemic, consumers are becoming more value conscious and looking for affordable options, which further supports the growth potential of our discount store.

Our research also shows that our target customers are willing to pay a premium for quality products, and our business model allows us to provide competitive pricing while maintaining high quality offerings. Our unique value proposition is to offer a wide range of products at discounted prices, creating a loyal customer base.

• TAM: 0 billion in the US alone
• Competitor annual revenue: billion
• Average spend per visit:
• Sales cycle: 2 weeks
• Projected market growth rate: 3% per year

business model

Our Discount Store operates on a low price strategy, aiming to offer products at a lower price than our competitors without sacrificing quality. We generate revenue through product sales and additional services such as delivery.

Product sales

We offer a diverse range of products that meet different customer needs, including home essentials, personal care items and home appliances. We source our products from trusted suppliers and negotiate discounts to ensure competitive pricing. Our pricing strategy is to maintain a smaller profit margin while keeping our products affordable for customers. In addition, we regularly offer seasonal promotions and discounts to attract more customers and increase sales.

Total amount of income

Our projected revenue for the first year of operation is 0,000 , with a significant portion coming from product sales. Our revenue projections take into consideration start-up costs, inventory and payroll expenses.

Additional services

In addition to product sales, we offer convenient delivery options to our customers. We partner with local delivery services to offer same-day and next-day delivery options for a fee, increasing customer convenience and generating additional revenue for our business. Additionally, we plan to introduce additional services such as installation and repair services for devices to further enhance our customer service experience.

Overall, our cost-effective approach coupled with attractive pricing, a diverse product line and convenient services will help us generate a stable revenue stream and establish a loyal customer base.

Competition

In the discount store market, there are several major competitors that we will argue against, including Walmart, Target, and Dollar General. Walmart is known for its low prices, wide selection, and convenient one-stop format. Target is known for its hip products and stylish presentation, while Dollar General is known for its rural locations and unbeatable prices. Although these businesses are well established, we believe there is room for a discount store that specializes in providing high quality products at an affordable price.

Our company sets itself apart from our competition by placing more emphasis on customer service and providing a more curated selection of products. While Walmart and Dollar General offer a wide range of products, our store will carry a carefully selected assortment of high quality items, making it easier for our customers to find what they need. Additionally, our company will provide better customer service by offering a more personalized experience, including knowledgeable staff and friendly policies.

One of our Unique Selling Points (USPS) is our focus on durability, which is not something our competitors have prioritized. Our store will actively seek out environmentally friendly products and packaging that will appeal to customers aware of their impact on the environment. Additionally, we plan to partner with local vendors and manufacturers, which will allow us to offer a wider variety of unique, locally sourced items.

We expect Walmart and Dollar General to be our biggest competitors as they share similar price targets. Walmart’s huge selection can also be a threat, but we think our curated selection and focus on customer service will set us apart from them. Target is a high-end store and is not directly in competition with our price targets, but we do recognize their trendy products and sleek presentation as a potential threat. However, we believe that our focus on sustainability will set us apart from all of our competitors.

• In summary, our competition includes:
• Walmart, known for its low prices, wide selection and convenient one-stop format
• Target, known for its trendy products and stylish presentation
• Dollar General, known for its rural areas and unbeatable prices

Founding team

Our founding team consists of John Smith, Sarah Lee and Michael Chen . We are a team of experienced professionals with extensive backgrounds in the retail industry. We have a shared passion for bringing quality products to affordable prices, and we believe our team has the skills and knowledge to make our business a huge success.

John Smith, our CEO, holds an MBA from Harvard Business School and has over 15 years of retail management experience. He previously worked for some of the world’s largest retail companies, including Walmart and Target, where he oversaw their discount store divisions. John’s extensive experience in this industry makes him the perfect leader for our team.

Sarah Lee, our COO, has a degree in Mechanical Engineering from MIT and over 10 years of experience in operations and supply chain management. She previously worked for Amazon and led cross-functional teams to improve operational efficiency and manage large-scale projects. Sarah’s expertise will be paramount in ensuring our stores run smoothly and efficiently.

Michael Chen, our CMO, has a degree in marketing from the University of Pennsylvania and over 10 years of marketing and sales experience. He has worked for some of the world’s largest consumer goods companies, including Procter & Gamble and Unilever, where he led marketing campaigns for some of their biggest brands. Michael’s expertise in marketing and branding will be crucial in positioning our discount stores in the market.

We understand that there may be skill shortages in our team, but we have taken the necessary steps to mitigate this risk. We have already hired a team of experienced buyers and merchants to ensure that we offer the best products at the lowest prices.

We firmly believe that we are the right people for the challenge. We have a proven track record of success in our respective fields, and we are confident that our passion and skills will help us overcome any obstacles we may encounter. Our common goal is to revolutionize the discount retail industry, and we are committed to achieving this goal together.

Traction

As we continue to work diligently towards our goal of opening a new discount store, we have made significant progress and achieved several milestones. These milestones provide solid evidence that our business idea is viable and we are headed in the right direction.

Growing customer acquisition

Our customer acquisition numbers have steadily increased each month. In the first three months, we acquired 3,000 customers. At the end of six months, our clientele had grown to 10,000 customers, a 233% increase.

Basket size increase

We are delighted to report that our customers love our product and make more purchases each time they visit our store. Our average cart size has increased from to , a 48% increase since we first opened our doors.

High customer satisfaction

We are happy to share that our customers are extremely satisfied with our store and our services. Our Net Promoter Score (NPS), which measures the likelihood that customers would recommend our store to others, increased by 30 to 50 . Our customer reviews and comments have been positive and supportive, with compliments on our product quality and excellent customer service.

Partnership with local vendors

As part of our community outreach program, we have partnered with local vendors and farmers to source fresh produce and other local produce. This initiative has been a huge success, and we have received rave reviews from customers and vendors. Our partnership has resulted in increased foot traffic and a growing number of loyal customers.

Expansion plans

We plan to expand our store to several new locations in the next 12 months. Our market research has identified several potential locations with high demand and low competition. We are convinced that by expanding our network of stores, we can continue to increase our customer base and our revenues.

Key Metrics and Drivers of Growth

We continue to closely measure and monitor our critical metrics and growth drivers, including customer acquisition, basket size, NP and foot traffic. We have identified specific initiatives to improve these metrics, such as improving our store layout, enhancing the customer experience and expanding our product line. We believe that by focusing on these areas we can be even more successful and achieve a profitable business model.

In conclusion, our traction shows that our business model is promising and has strong growth potential. We are confident that the professionalism and expertise of our dedicated team, combined with our commitment to customer satisfaction, will lead to long-term success and profitability.

Fund raising

In order to take our discount store to the next level, we are seeking million in funding. This seed funding will help us complete our product development and release a beta version that will help us acquire early adopters and test our hypotheses.

The funds will be spent on three main areas: product development, marketing and new hires. We will allocate 60% of funds to product development, as this is the core of our business. The remaining 40% is split evenly between marketing and new hires. Here is a detailed breakdown of the funds allocation:

• 60% – Product Development: Hire developers, pay server costs, and purchase hardware and software required for development.
• 20% – Marketing: building brand awareness, reaching out to potential customers and running digital campaigns, trade shows and events.
• 20% – New Hires: Recruiting additional team members such as a UX designer, marketing manager, and other roles needed to move the discount store forward.

With seed funding, we aim to achieve the following milestones:

• Launch a beta version of our platform
• Acquire at least 1,000 early adopters
• Conduct surveys and receive user feedback
• Validate our assumptions and pivot if necessary
• Secure follow-up funding from investors or receive acquisition offers.

We are confident that we have a solid plan and an experienced team that can execute it. We welcome investors who share our vision and are ready to join us on this exciting journey.