6
Innovating the business of e-Learning
To contact SellingPros Ivan Katz, CEO P: 949-833-8188 info@sellingpros.com 2212 Dupont Drive, Suite R Irvine, CA 92612
SellingPros,
A B2B e-Learning
Inc.
portal for manufacturers and retailers providing scalable, incentive based training solutions through profit sharing partnerships.
The State of Retail Training
Ask any retail sales associate for help and the chances are they lack sufficient product knowledge to effectively recommend, compare, or upsell current products. The reason is that major resellers experience large turnover of their sales associates, high costs of effective sales training, and outdated in-store training methods that do not incorporate incentives to motivate learning. Additionally, manufacturers and distributors have limited access to sales associates. In any retail environment, if the sales associate has proper product knowledge, they can positively influence incremental sales and increase profits. Today, with ever-increasing SKU counts and limited shelf space, every manufacturer needs more effective means to compete. In every industry, effective sales training increases sales. Both retailers and manufacturers benefit from effective sales training so both are willing to carry the cost of this training. Current training methods are not only inefficient because of the lack of sales associates' motivation to learn, but they are also administratively cumbersome due to the logistics of coordinating the hundreds and sometimes thousands of sales associates. Until now, there has not been an efficient, cost effective way to provide product training accompanied by incentives to motivate sales associates. SellingPros incentive-based e-Learning is the answer!
Experience
dictates approach
and shortens
closing time.
SeilingPros signed a contract with a major reseller within six weeks of completing our web site. Why? SellingPros was founded by long-time software industry experts with experience in selling to every major U.S. retailer. Because they have dealt with hundreds of manufacturers and thousands of products, they are very aware of the category buyers' influence and the benefits of effective and continuous product training. SellingPros, therefore, has taken the approach of securing agreements with major resellers, who have major influence with manufacturers, rather than trying to sell product training to manufacturers who often have become disillusioned with in-store training. SellingPros has already secured a contract with Fry's Electronics. Staples and Hastings are currently in final contract negotiations. SellingPros has also established a strategic partnership with The InterConn Group (ICG) of Sacramento, CA. ICG provides web development, consulting and marketing services. SellingPros, in conjunction with ICG, has designed a fully functional SellingPros' training site that has attracted strong interest from sales associates at a number of retailers. The Company has also developed the "Product Wizard" application, which allows manufacturers to easily input their training information into the customized retailer web sites. Having manufacturers input their own information increases accuracy and minimizes SellingPros costs. Each site is scalable and fully customizable based on each retailer's needs. Currently over 1,000 sales associates train on SeilingPros web sites.
Confidential
SellingPros Phone: 949-833-8188
SellingPros has devised the right solution
SellingPros provides an e-Learning solution that is 100% funded by manufacturers and free to retailers. In addition, SellingPros' revenues are shared with retailers. Training has always been an expense for retailers. SellingPros' solution provides a new profit center for retailers. This motivates retail management and buyers to strongly encourage manufacturers to participate in the SellingPros' program. Because SellingPros has capitalized on the web-based format to provide "24/7" access to sales associates for product information, manufacturers are extremely interested in capturing the mind share of this important group. Until now, sales associates have had little incentive to train on specific products. SeUingPros has been able to attract over 1,000 sales associates to our site by offering free product samples and drawings for even larger prizes. The Company also requires each associate to pass quizzes on listed products. This motivates each sales associate to "earn more by learning more." The end result: • • • • • www--win,win,win.
New profits are generated for retailers rather than an expense. Retailers gain a better trained sales force. Sales associates are more inclined to suggest products to customers for increased sales. Manufacturers have better access and more effective means for training retail sales personnel. Retailers and manufacturers gain access to valuable survey information and product feedback from sales associates. This will directly influence product development, promotions, packaging design and future product training.
Market Opportunity
According to IDC, a major research and consulting firm, estimates for corporate web-based training in the US will be in excess of 1.5 billion dollars in the year 2000 and over 9 billion dollars in the year 2002. The key industries that SellingPros will compete for are: Computer Products, Garment/Apparel, Sporting Goods, Auto Parts, Pet Supplies, Health Foods, and Communications. All industries will have a Fixed Transaction Fees revenue model. The Company's immediate goal is to secure key personnel with direct knowledge of the target industries. The Company expects to use the same approach of"blitzing" the major retailers in each industry and locking in signed contracts for training. Our shared profit model makes closing the sale with retailers much easier. Additionally and at minimal cost, SellingPros will work with retailers' training departments to provide valueadded training solutions to their entire employee base. This will block competition (including the retailers themselves) from implementing our approach to training in this market.
Competitive Analysis
The currentcompetition for incentive-based e-Learning at retail, is minimal. Only three competitors are known to exist as of June 2000. Their approach is different in that they target manufacturers and attempt to sell them space on their sites. They also market directly to sales associates without the support (and in some cases knowledge) from the retailers. Two of the three competitors are very similar and compete more directly with one another. None offer revenue sharing or customized site design for each retailer's needs.
Confidential
SellingPros Phone: 949-833-8188
Management
Team
SellingPros' management team has a solid cross section of sales and retail experience, which will be a key asset in achieving success. StevenGraham President Founder. Responsible making for presentations, securing agreements andoverseeing sitedesign features. ismostrecentexperience H includesixplus s yearsofexecutive level elling s asVP of Business evelopment D withFTM,Inc.,a national manufacturers' repcompany. Also,hewasa National SalesManagerorAmeriquest f Technology for threeyears.Graduated fromUniversity Southern of California, BSBusiness. Founder. Responsible foroverseeingllcompany's a dailyoperations andfuturegrowth planning through marketing, mergers orIPOs.Hasover25 years experience insales, distribution, publishing andretail anagement. m Served President SoftKatnc.for as of I 5 yearsandwasinstrumental inarranging ndimplementing a thesaleofSoftKatInc.to eSynch, public a company. ervedasVP of Salesat eSynch. ostrecently S M Mr.Katz oined FirstToMarket andinitiated TMto become national F a salesorganization representing over15publishers. InpreviousearsMr. Katz y wastheowner/publisher of Business oBusiness agazine, T M which hesoldtoZebraPublishing andprevious to thathewastheowner a 10store of chain ofwomens' discount clothing. r.Katz M received hisBAdegreeHistory from California tateUniversity t LosAngeles. S a CFO. He hasover25+yearsof experiencesController a forvarious public and closely heldorganizations withsales excess $55 million. in of Before joining SellingPros hewastheController foreSynch Corp. ticker ymbol ( s ESYN).Previously, hewaswithTowne,Inco, hi-tech a fulfillment house Irvine, A.He hasalso in C worked asGeneral anagerora highly M f specializedoftware ompany. s c Graduated from Franklin University, BSFinance andAccounting.
IvanKatz CEO
KiritGoradia CFO
Testimonials
SeUingPros has received positive feedback from the 1,000 sales associates who have registered to date. "SellingPros makes my job easier too! Instead of sending software questions to our store Tech Support, salespeople will be better able to answer any customer questions personally." Jim Kloska, Sr. Technical Support Representative, Micro Center "Fry's is thrilled to have partnered with SellingPros in creating an incentive-based, on-line training solution for our in-store sales associates. SellingPros has worked closely with Fry's to design sites that fit our needs. We expect this site to translate into better customer service, fewer returns and higher sales in the months to come. " Rayman Cheng, Director of Software, Fry's Electronics
Investment Opportunity
Having self-financed the growth of the Company to date, SeUingPros is now seeking a Series A equity investment of $1 Million. Upon receipt of funding, SellingPros will: • • Hire the necessary sales and support personnel to achieve revenue goals and secure new contracts. Extend the Company's server network to support operations.
Revenue Projections (in thousands) 2000 Revenues $ 3,000 $ 2001 7,000 $ 2002 18,000 $ 2003 45,000 $ 2004[I 85,000[
The Company expects profitability by the end of 2001 through the expansion opportunities provided by the Series A investment. SellingPros Confidential Phone: 949-833-8188