PTI Finance

Finance

Market-

PTI plans to sell our products initially only to new musicians just learning their trade. We understand that Selmer, Buffet, Jupiter, Yamaha, and all the other instrument companies already have supporters, and we are not interested in putting them out of business, or anything of the kind. First, we understand that professional or even seasoned musicians are accustomed to compensating for and to the sound of less perfect instruments. They are likely never to buy our product, but neither you nor your child (if you be the parent of such a gifted son or daughter) be bound by the mire of tradition. Perhaps you will decide to return and purchase a professional quality instrument should you continue in your musical endeavors so long. Samples of our product have been donated to all major middle and junior high schools across the country; 2 to each public school and 1 to each private school. You will also find them in many major music stored, and in several catalogues. Of course, we encourage you to buy directly off of our website, as you may find better prices, as well as reasonable shipping. (Our first month is shipping free!)

We estimate:

-(˜2000 + colleges in the US) * (˜50) = 100,000 middle & high schools in the US
-(˜150 students/school in a band or orchestra) * (˜.5 play a woodwind) * (˜1.33 instruments/player) = 100 instruments/school
-(˜25% musicians are new) + (˜75% musicians already own the instrument) * (instruments require replacing ˜1/6 years) = 37.5% instruments are sold
-(˜30,000 new adult musicians/year) * (˜1.33 instruments/player) = 40,000 new instruments to adults/year

-(100,000 schools) * (100 instruments/school) * (.375 sold) + (40,000) = 3.79 million instruments/year
-(3.79 million instruments/year) * (˜16.67% market to PTI) = 632,000 instruments/year

-(˜632,000 instruments) * (80% musicians prefer natural reeds) * (˜2.5 boxes * 20 reeds/year) = 25.28 million reeds sold/year (future projections, once PTI expands to include reeds)
-(˜632,000 instruments) * ( 20% musicians prefer synthetic reeds) * (2 reeds) = 126,400 synthetic reeds (future projections, once PTI expands to include reeds)

Finances-

-(2 factories) * (50 employees) + (1 office) * (25 employees) *
(-$30,000/year) = -$3.75 million
-(2 factories) * (-$3.5 million/factory) + (1 office) * (-$.5 million/office) =
-$7.5 million
-(˜632,000 instruments) * (<-$75 raw materials & construction/instrument) ˜ <-$47.4 million
-(˜-$100,000 advertising) + ((100,000 schools) * (50% private) * (1 instrument/school) + (100,000 schools) * (50% public) (2 instruments/school)) *
-(-$75 raw materials & construction) = -$11.35 million
-(31.6 million reeds/year) * (1 year free reeds) * (-$.01/reed) = -$316,000
-(632,000 instruments) * (.0833 years free shipping) * (-$10 shipping/instrument) = -$527,000
-(25.28 million reeds) * (-$.01/reed) = -$252,800 million loss (future projections, once PTI expands to include reeds)
-(25.28 million reeds) * ($1/reed) = $25.28 million gain (future projections, once PTI expands to include reeds)
-(˜126,400 synthetic reeds) * (-$1/reed) = -$126,400 loss (future projections, once PTI expands to include reeds)
-(˜126,400 synthetic reeds) * ($12/reed) = $1.52 million gain (future projections, once PTI expands to include reeds)

-(1st year loss) = (-$3.75 million salaries) + (-$7.5 million building construction) + (-$47.4 million raw materials & construction) + (-$11.35 million advertising) + (-$.527 million free shipping) = -$70.53 million loss

-(632,000 instruments) * ($165/instrument avg.) = $104.28 million gain
-(1st year net profit) = ($104.28 million gain) + (-$70.53 million loss) = $33.75 profit

We expect to be able to refine our construction process and robotic construction technology to decrease the cost/instrument to PTI by $5-10, brining it to $65-70/instrument within 3 years. Our added lines (English horn and other woodwind variants) are expected to increase or grip on the market by 4.66-5.33% within the next 2 years. The addition of reeds will increase our income by roughly $30 million. We are well prepared to journey stars of this market on our little enterprise.
This site was a designed as a entrepreneur business model by high school students for a class. Its claims are in no way true, nor have any known relation to research being done at Caltech or any other institution.