Do you love dogs?

Would you like to support your favorite breed in a fashionable and

easy way? If this is true, I have the perfect product for you! PupLovers is a line of simple
baseball caps with a small dog figure embroidered on the front. Im going to start with Shiba
Inus because they are a breed close to my heart and rapidly becoming a very popular breed.
When the business takes off, I would like to expand to other breeds of dogs. Each cap is
adjustable and come in three colors: pink, black, and charcoal. I believe that many people will
like the hat because of the simplicity and overall cuteness of the design. 50% of the profits for
each hat will go to the Humane Society, an animal advocacy organization working to end large
scale animal cruelty. Once I expand the line to more breeds, 50% of the profits for each hat will
go to a rescue for that specific breed. Another 25% of the profits will go toward expanding the
company. This means working toward manufacturing the hats and embroidering them through
my company rather than third party companies and to create more hats to sell. The last 25% will
go to my college fund. My target consumer population is teenagers because they usually want a
very simple design, and my hats are something I would wear myself. On a broader scale, I am
also targeting anyone who loves dogs and likes hats.
To start off, I will be producing each hat myself. I will order the hats from a retailer on
amazon, at $6.40 per hat with free shipping. Then I will take the hats to T-Shirt Mart for custom
embroidery. There is a one-time fee of $50 per design to digitize the design for the embroidery
machine. After that, it will cost about $10 per hat for the embroidery. This brings each hat to a
grand total of $16.40 to produce, which sounds pricy at first, but after the ball is rolling, we can
reduce the costs through wholesale and mass production.
To calculate the optimal price to sell my hats, I conducted a survey of 53 people
(teenagers and adults, mostly female) and asked them how much they would spend on my

product out of $18, $21, $24, $27, $30, and $36. I took the raw data and created a linear
regression so I could see how, as the price goes up, the demand for the product goes down. Next
I analyzed the data to find out total revenue, costs and profits for each price. Finally, I graphed a
quadratic regression using the total profits from each price to find the theoretical optimal price.
The quadratic regression helps me see the break-even points, where I wouldnt make any profit,
and the vertex, where I should be making the most profit. According to the graph, $24.68 is the
best price to sell my product, but I feel like this number is a little odd. Also, $14.47 and $34.89
are the prices where I wouldnt make any profits. These numbers arent exactly accurate since it
costs more than $14 to create a hat, so its not a perfect break-even point.
Ive decided that Im going to sell my hats at $24 because its a whole number and may
sound more inviting to consumers. It was also the price that would bring in the most profit,
according to my survey and data calculation. If I sell the hat at this price, I will make $7.60 in
profit for each hat. If 33 people buy my hat, as they said they would in the survey, I should make
about $792 in revenue minus $541.20 for production costs totalling to $250.80 in profit. For my
first month in business, I think I can sell at least 30 hats, possibly 45. Revenue from 45 hats
would be $1,080 minus $738 from production fees which totals to $342 in profit. From that
money, I would need to subtract $50 for the one time design fee bringing my profit for the first
month to a grand total of $292.
From the investors, I would like a loan of $1,000. It will cost me approximately $788 to
create 45 hats, with the one design. The leftover money will go toward gas to drive to T-Shirt
Mart, creating a website to reach a wider audience, any shipping costs, costs for additional
designs, and any unexpected costs. I believe you should invest in my hats because I know my
audience and I have great confidence that it will sell. I also have put a lot of thought and effort

into my product. Also, the money is going to a cause that is very near and dear to my heart.
Thank you so much for considering my product.