Presentation on theme: "Copyright to 2011 by Kyrano Corporation. 1 Where every buyer gets a bargain."— Presentation transcript:
Copyright to 2011 by Kyrano Corporation. 1 Where every buyer gets a bargain.
Copyright to 2011 by Kyrano Corporation. 2 Kyrano.com profile Florida corporation $35,000 start-up capitalization 4 investors 4 employees 20 months in product development Product tested and operational Seeking to fill executive-level positions to ensure successful product launch
Copyright to 2011 by Kyrano Corporation. 3 Kyrano.com was founded by Serge Matulich, Ph.D., CPA BS in accounting from Sacramento State University Ph.D. from University of California, Berkeley CPA licensed in Florida Professor Emeritus with more than 35 years of university teaching experience. Author of college textbooks and academic papers.
Copyright to 2011 by Kyrano Corporation. 4 Chief Executive Officer of Kyrano Corporation Successful small business owner J.D. cum laude, Southern University Law Center Business consultant Highly successful sole practitioner Essential in the Creation of Kyrano.com
Copyright to 2011 by Kyrano Corporation. 5 Chief Financial Officer of Kyrano Corporation Former CFO of organizations with over $100 million of revenue Independent Management Consultant Certified Public Accountant Graduate degrees from Columbia and Chicago Contributing to the Development of Kyrano.com
Copyright to 2011 by Kyrano Corporation. 6 Kyrano depends on a large membership Many situations depend on large numbers of people who pay a small amount for a potentially large benefit. Kyrano Corporation is a business that creates these situations.
Copyright to 2011 by Kyrano Corporation. 7 Situations that deal with large numbers of people Insurance companies collect premiums from many people to create a fund for paying those who experience a disaster. State lotteries obtain small amounts of money from thousands of people, keep 50 percent, and distribute the rest to a small number of winners. Fund-raising raffles get many people to contribute to help a good cause with a small chance of winning a prize.
Copyright to 2011 by Kyrano Corporation. 8 Situations that deal with large numbers of people In most cases, people understand the risk of loss when they participate in insurance, lotteries, or raffles. Millions of people are willing to take the risks, knowing that they may never see a return. The success of Kyrano.com depends on large numbers of participants who are willing to spend a small amount of money for a chance at a significant saving on their big purchases.
Copyright to 2011 by Kyrano Corporation. 9 What is Kyrano.com? It is a unique auction web site where each bid lowers the price of the item being auctioned. The winning bidder always gets a bargain. It is not a penny auction. It is not a gambling site. It is not a game. It is a legitimate, ethical, and fair business that benefits buyers, sellers, and stockholders. Participants understand the risk involved.
Copyright to 2011 by Kyrano Corporation. 10 How does Kyrano.com work? We do not sell products. We carry no inventory. We sell discounts on high-value products. We hold unique auctions for discounts on college tuition, credit card debts, and installment loans. Winning bidders buy the products from legitimate sellers of their choice. Kyrano pays to the merchant the portion of the price won by the winning bidder. The winning bidder pays the remainder of the price to the merchant.
Copyright to 2011 by Kyrano Corporation. 11 How does Kyrano.com work? Mr. Able wants to by a car. He finds the car he wants at a local dealer, a Chevy Malibu with various options. He comes to Kyrano.com and enrolls in an auction for the car he wants to buy. Other members who want to buy a car also enroll in the auction. Each one pays a small fee to enroll. When enough people are enrolled, the auction begins.
Copyright to 2011 by Kyrano Corporation. 12 How does Kyrano.com work? The enrollment fees from an initial number of bidders may be used to cover operating costs. Beyond the operating costs, most of the enrollment fee is used to develop a discount. As members enroll in the auction, they see the discount increasing. Members buy bidding tokens to participate in the auction. Bidders are told when the auction will start.
Copyright to 2011 by Kyrano Corporation. 13 Enrollment page for an auction
Copyright to 2011 by Kyrano Corporation. 14 How does Kyrano.com work? Each auction requires a designated number of bidding tokens per bid. Each bid lowers the price of the product by increasing the discount. Each bid starts a timer countdown. The bidder whose timer runs to zero wins the auction. Other bidders restart the timer by bidding before zero is reached.
Copyright to 2011 by Kyrano Corporation. 15 How does Kyrano.com work? As bidding progresses, the cost of bidding goes up and the discount increases more slowly. The timer countdown may get shorter. If there is no winner after a certain number of bids, an Instant Winner (IW) discount is displayed. The IW discount is smaller than the normal discount. It becomes available to the current bidder during the timer countdown. If the Instant Winner discount becomes available, the bidder whose timer is running can accept it and win the auction. Other bidders may bid before the IW discount becomes available to the current bidder.
Copyright to 2011 by Kyrano Corporation. 16 How does Kyrano.com work? For Kyrano auctions to work, a large number of bidders is needed. If enough bidders don’t enroll in an auction, it is canceled and the enrollment fees are refunded. To ensure a large enough population of bidders, several similar items may be combined in a single auction.
Copyright to 2011 by Kyrano Corporation. 17 How does Kyrano.com work? Bidding is done with Gold, Silver, or Bronze tokens. Members buy gold tokens for 10 cents each. Gold tokens are fully refundable. Silver tokens are given away as prizes. Members can also buy silver tokens in auctions at a discount. They have the same value as gold tokens, but they are not refundable in cash. Members who don’t win an auction may have their gold tokens refunded with bronze tokens. Bronze tokens can be used only for bidding. They cannot be refunded or used for enrollment.
Copyright to 2011 by Kyrano Corporation Ford Explorer $29, Ford Mustang $22, Chevy Malibu $21, Honda Accord $21, Ford Taurus $25, Honda Odyssey $26,805 $21,001 - $23,000$25,001 - $30,000 Mr. Able will bid on a Chevy Malibu for which the dealer is asking $21,825. By selecting the car in our list, he starts the enrollment process for auction #33. Ms. Baker is in the market for a car so she visits Kyrano.com and looks over the selection. She selects the Honda Accord from our list and is sent to the enrollment page of auction #33. Dr. Davis decides to bid on the Ford Taurus. His selection is in a different price range so he is not sent to auction #33. His selection starts a new auction. Example of an auction for a car 2010 Chevy Traverse $29,224
Copyright to 2011 by Kyrano Corporation Ford Explorer $29, Ford Mustang $22, Chevy Malibu $21, Honda Accord $21, Ford Taurus $25, Honda Odyssey $26,805 $21,001 - $23,000$25,001 - $30,000 The enrollment on auction #33 is complete and bidding has started with a discount of $1,800. When bidding starts, only the enrolled bidders can bid. New bidders are not admitted. As bidding progresses the discount increases. Mr. Able and Ms. Baker are each bidding in the same auction although each is bidding on a different car. They see only their own product selection on their computer screen. Example of an auction for a car 2010 Chevy Traverse $29,224
Copyright to 2011 by Kyrano Corporation. 20 Bidders are assigned an auction ID. Their user names are not shown. This view belongs to Eagle6, who has 14 seconds to decide whether or not to bid. Mr. Able sees a Chevy Malibu on his view, with the same discount. No one knows when the Instant Winner button will become available or active. Example of a bidding pane Your auction ID is Eagle6 14
Copyright to 2011 by Kyrano Corporation Ford Explorer $29, Ford Mustang $22, Chevy Malibu $21, Honda Accord $21, Ford Taurus $25, Honda Odyssey $26,805 $21,001 - $23,000$25,001 - $30,000 The discount in auction #33 is $4,700 with no winner yet. The next bid costs $4. Ms. Baker bids. Her timer is counting down from 9 seconds. The Instant Winner discount of $4,380 is available and will become active when her timer gets to 5 seconds if someone doesn’t bid before then. Mr. Able bids and his timer runs down enough to make the Instant Winner discount accessible. Should he accept the smaller discount and stop the auction for a sure win, or wait for his timer to run to zero, or have another bidder stop it? Example of an auction for a car 2010 Chevy Traverse $29,224
Copyright to 2011 by Kyrano Corporation Ford Explorer $29, Ford Mustang $22, Chevy Malibu $21, Honda Accord $21, Ford Taurus $25, Honda Odyssey $26,805 $21,001 - $23,000$25,001 - $30,000 Mr. Able clicks on the Instant Winner button and wins a $4,396 discount. Kyrano sends Mr. Able a check for $4,396 payable to the car dealer for a Chevy Malibu. Mr. Able buys the car he wants from the dealer. Kyrano has a gross profit of $3,685. In some auctions the gross profit may be larger than the amount the bidder won. Ms. Baker spent $29 on the auction, so the total cost of her car is $29 more than the dealer’s asking price. Suppose that Kyrano has developed a good relationship with the car dealer. Ms. Baker finds the dealer is willing to lower the price of the car to compensate for her cost of bidding. Example of an auction for a car 2010 Chevy Traverse $29,224
Copyright to 2011 by Kyrano Corporation. 23 How does Kyrano.com earn? Members can bid on college tuition, credit card debt, a bundle of bidding tokens, a house, mortgage payments, or any product they want. Whether members bid on a $400 TV, a $45,000 car, or a $200,000 mortgage, the winning bidder wins a reduction of the cost. Kyrano earns a gross margin on every auction on which bidding starts without investing in any inventory.
Copyright to 2011 by Kyrano Corporation. 24 Additional income sources Commissions on real estate auctions. Payments by merchants who want to list their products. Sponsorships by companies whose products are featured in our listings. Advertising.
Copyright to 2011 by Kyrano Corporation. 25 Incentives for bidders Members earn a point for every gold bidding token spent. Points can be exchanged for free bidding tokens. Randomly-determined free bids are available in auctions. Gold tokens used by auction losers may be refunded in bronze tokens. Discount coupons for losing bidders to recover their cost of bidding if they buy the product from the sponsoring merchants. Periodic sweepstakes that pay winners free bidding tokens, using some revenue from each auction. Free interactive game playable during the last hour of enrollment and during each auction, with bidding tokens awarded to game winners. Other incentives are possible to maintain member interest, offer entertainment, and provide benefits to members.
Copyright to 2011 by Kyrano Corporation. 26 Imagine this scenario Suppose that Lowes hardware store is a Kyrano sponsor. This week in the US, 100 people will buy a $600 Ryobi cordless tool kit, about half from Home Depot and half from Lowes. These 100 people bid on the tool kit at Kyrano.com spending an average of $10 each. Kyrano collects $1,000. The winning bidder wins a discount of $400. We send him a $400 check payable to Lowes. He pays the balance of $200. He got a bargain. Each of 99 losing bidders gets a $20 discount coupon from Kyrano, good at Lowes for the purchase of the tool kit. How many of the losing bidders will buy the tool kit from Home Depot? Lowes gains 50 extra customers by offering a 3.3% discount. Sponsoring a Kyrano auction can benefit merchants.
Copyright to 2011 by Kyrano Corporation. 27 Profit potential Simulations based on conservative, realistic assumptions show that Kyrano can earn a reasonable amount of revenue on every auction. To cover operating costs, we must earn a reasonable margin on every auction. Kyrano does this without investing in any inventory. By offering auctions on high-priced items like homes, cars, college tuition, or mortgage debt, we can take a small percentage. Such auctions offer attractive terms to members, keep non-winners’ losses low, and still yield a good gross margin to the company.
Copyright to 2011 by Kyrano Corporation. 28Kyrano.com Does the concept excite you? Can you believe in the concept? Can you contribute to its success? Are you innovative, energetic, and eager to participate? If you can answer YES, Kyrano Corporation needs you.
Copyright to 2011 by Kyrano Corporation. 29 Kyrano needs people Kyrano corporation needs energetic, innovative, hard-working people to staff its operations. Our goal is to create a team whose actions reflect a corporate culture of excellence. We plan to create staff excellence through an exciting, vigorous, and ground-breaking work environment coupled with appropriate generous compensation.
Copyright to 2011 by Kyrano Corporation. 30 Kyrano needs people Until Kyrano generates an adequate cash flow, all compensation is in the form of equity. We want your share of equity to be worth far more than a salary you might have earned. Whether this is realized depends on you and your contribution to Kyrano’s success.
Copyright to 2011 by Kyrano Corporation. 31 What’s in it for you? We have full-time and part-time positions and require a firm commitment on your part. You will have no salary, no office, no benefits. If you perform your job well you will be compensated generously with equity. If you succeed the opportunity is great. If you fail you lose the investment of your time. We lose the investment of our time and money.
Copyright to 2011 by Kyrano Corporation. 32 What’s the next step? We are open to your ideas. Do you have skills and talents that you think can benefit Kyrano Corporation? Are you willing to work with others as a team toward a mutual goal to make the company successful? If you are interested and willing to contribute to Kyrano’s success, please submit your resume by and indicate in your message that you have viewed the presentation. Tell us what you would do to contribute to Kyrano’s success: