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Tuesday, 04/25/2017 6:47:17 PM

Tuesday, April 25, 2017 6:47:17 PM

Post# of 20617
Folks- perhaps we should focus on what we DO know ? My mission over the next couple of weeks is to try and help cut through all of the BS and try my best at posting factual information - the kind of information that should make a tangible difference in the minds of investors. This is ignoring Fluti for the moment and just focusing in on our top selling products.

At the appropriate time, I will release what I believe to be eye opening marketing information. This will happen before the Q1 earnings release/conference call.

So, knowing that will be coming soon, let's familiarize ourselves with some FACTS:

- We know margins are strong at ~78%, largely due to no brick and mortar
- We know the following products were marketed in Q1 in a consistent way
(Vesele, Sensum+, Recalmax, UriVarx, and BH Testosterone)
- We know we have $2M minimum coming in for 2017 from the South Korean deal, perhaps it already has hit ???
- We know that Urivarx was launched in December 2016 so that particular product DID NOT have a full qtr sales cycle in Q4, like will be the case for Q1. IMPORTANT FOLKS
- We know the cost of ads in every state and every newspaper across the country from this link. (Full page B/W ads cost 126x the amt. shown)

http://www.gaebler.com/Newspaper-Ad-Rates.htm

- We know that all product ads were done in b/w (no color) and almost all were full-page
- We know that the target audience of Vesele is virtually everyone in the newspapers' circulation. BOTH men and women
- We know that UriVarx and Recalmax are also products for BOTH men and women but generally for the older population - those mostly 60+ years old. I would conservatively say 35% of the subscriber base. Younger folks would not have the news delivered. Note - there are 40-50 yr old with bladder/memory issues, though. I'm Sticking with 35% of subscriber base as those 40+ can always buy the product FOR their parents to use.
- We know that Sensum+ and BH Testosterone are for men only and pair well together. Pretty much exactly Half of the circulation, although women COULD buy it for their man to use.

So, let's become familiar then with the ad rates (see above link) - I think you will find they vary by city and circulation numbers. Important to understand that ads rates can and often are negotiated BUT using figures given would be the conservative way to go IMO. Discounts are applied based on frequency/seasonality as well.

Next - let's get a feel for average hit rates on full-page newspaper ads. Could use your help here...I have read anywhere from 1/2% to around 2% of target audience is about normal for print media. Would love for folks to share stats/links to average take/hit rates but an average of 1% is not out of the question. (especially a full-page ad w/ a catchy title). Plus you do have those tweets/posts which are FREE from Product Ambassadors looking to help others as they help themselves. You also have cross-sales from call center reps as ALL ads come with a phone number to call.

So, until I post my promised information, let's first get a feel for what "costs" would be on average as we know the products sell for ~$70/unit. COGS is ~ 25% of that plus the ad costs.

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