Herborium Group Inc (HBRM)

[Bigduke7]

Preliminary Revenue Projection

Taken from the German Business Website Kompass.com:

http://de.kompass.com/profile_DE667584_en/bismarck-premium-brands-gmbh-gi.html

The website is German and it is trademarked and copy-written, so there is some truth to within reason the actual Umsatz or revenues.

Umsatz = Revenue

$13,132,000.00 to 32,830,000.00 (EUR converted to USD)

I estimate, judging by their product website, the company has four streams of revenue in four different product lines. Since there is no way of knowing exact revenue figures for each I will simply divide known revenue projections by four:

13132000 / 4 = $3,228,300.oo (conservative)
32830000 / 4 = $8,207,500.oo (liberal.. yep, I’m getting political on ya!)

Bearing in mind there are already three brands of Kamasutra, another brand may be added or replaced in the product grouping. I will guess one is replaced with a superior HBRM mixture. In kind, I will divide the product line revenue figures again by three.

3228300 / 3 = $1,076,100.oo (conservative)
8207500 / 3 = $2,735,833.oo (liberal)

The revenues will then be added a markup as the product moves from Germany to the United States and other retail facilities around the globe. Since this is also hard to judge, let’s assume a conservative 25%.

1076100 * 1.25 = $1,345,125.oo (conservative)
2735833 * 1.25 = $3,419,791.oo (liberal)

With an understanding of license fees and product revenue sharing, a reasonable assumption of a 10% revenue stream would be reasonable. (see my past posts for the day regarding this topic).

1345125 * 10% = $134,512.oo (conservative)
3419791 * 10% = $349,979.oo (liberal)

Of course there are other factors that will come into play but my understanding is the only expenses HBRM will incur in this venture is legal and accounting fees and maybe a few business trips to Germany. In addition, as far as I can tell, the U.S. market has not been touched with this product and would most likely increase the revenues for the manufacturer in kind.

Also, remember, the advertising that comes along with the labeling which is very likely to increase HBRMS revenues many fold. In addition, this will be the first product of its kind in the U.S. There will be a demand…

Ok.. phew.. I worked hard on that.. Hope you enjoyed my presentation.

Bigdukeout!