Executive Summary What Is Gametut.Com?
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Executive Summary What is Gametut.com? Gametut.com is a video game trading website that allows members to trade their used video games and DVD’s for our form of virtual currency. This virtual currency can then be used to purchase any other item listed on the site. Whats the purpose of Gametut.com? Gametut was created to give our customers the most value for their used merchandise then anywhere currently available. Companies like retail giant “GameStop” have built an empire upon purchasing used games from customers for embarrassingly low amounts, then will turn around and sell those games just shy of full retail value (Typically $5 less on newer games). Gamestop has an average 46% profit margin on used games and focusses the bulk of their business on getting customers to “give away” their old games and DVD’s for a very small amount of in-store credit. We at Gametut.com have created a trading network that will give our customers 60%-90% more value for their used merchandise. How it works In the context of processing trades, we deduct a small portion of the value from the listed product on our site. Our service fee is currently set at $1 of virtual credit. Therefore if a Gametut member has successfully traded an item we have valued at $50, he will then be credited $49 into his virtual account. The other member requesting the game will also need at least $1 in virtual currency in order to receive the trade. On Gametut.com $1 in virtual currency is equal to one real dollar. This slight shortage will create a demand to purchase additional virtual currency using real dollars to complete trade transactions. Industry Outlook In 2010, GameStop reported having earned over $2.4 billion from used game sales alone. The video game industry as a whole reported sales of $25 billion in 2010. By 2015 industry experts expect sales to reach over $70 billion. Recently, other online and brick and mortar retailers such as Amazon.com and Best Buy, have started to dabble in used video game sales. Competition Goozex.com and Turbobotz.com currently offer users the ability to trade their used games for virtual currency. Goozex uses a confusing point structure and requires money up front in order to trade. Turbobotz.com was recently awarded $250,000 in seed funding by a Venture firm called Cincytech. Demographics The average gamer is 35 years old and has been playing games for 13 years. 82% of gamers are 18 years or older. 58% of gamers are men. Women gamers over the age of 18 are the industry’s fastest growing demographic. 72% of all American households play computer or video games. Executive Summary (Cont.) Company Goals / Future Growth Gametut plans on becoming the industry leader in Video Game and DVD trading within 3 years. Within 1 year Gametut plans on adding a variety of unique tools and services that will continue to set us apart from the competition. New modules to be completed for the website include a massive online merchandise store, an innovative trader rewards program, open chat forums, video blogs, and gaming leader boards. Within 1 year by using our existing website coding, we plan on opening a sister site called Booktut.com. Booktut will allow users to trade e-books back and forth. E-book trading is a brand new web phenomenon many internet users do not know exists. Within 5 years we hope to open Brick and Mortar locations under the name “Tradetut”, that will use our Equity Deduction system to sell a variety of items such as Computers, Electronics, Appliances, and even vehicles. Tradetut will also allow members to trade their quality used items toward the purchase of any new merchandise offered in the store. Marketing Edge In conjunction with online advertising efforts, such as a robust SEO Campaign and targeted social media ads- Gametut plans on hitting the road and promoting our site using some traditional guerrilla marketing tactics. We recently purchased a Honda Element that will be wrapped with our logo and company information to use as a mobile billboard. In the spring we will launch a massive college tour and also participate in dozens of festivals and special events. We will create strategic marketing partnerships with fellow companies who cater to the same demographic. We will trade advertising space on our site for the ability to place signs and banners in their physical locations. Management The sites founder Dan English has worked as a manager in the entertainment and retail industries for over ten years. Dan will use the knowledge he gained by working for companies such as GameStop and Six Flags to effectively build a successful business around the needs of the customers. Sales Forecast Revenue for the end of 2012 is expected to be over $120,000. Year end revenue for 2014 is expected to be in excess of $400,000. This projection is for Gametut.com alone. With additional revenue streams such as booktut.com and tradetut.com we feel total revenues could be between $1-$4 million dollars by 2015. Immediate Needs We are currently looking for experienced advisors in the area of E-Commerce. In addition, we are seeking an initial Angel Investment of $25,000, with a future soft-circle commitment for an additional $100,000. More information about the business can be viewed at www.gametut.info .