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What problem does your solution solve?
We've lost the personal touch we used to have. People used to be so much more personal, but now we just send texts and write on someone's wall when it's their birthday or something happened in their lives. That's not enough. Greetale makes it faster, cheaper, and easier to send handwritten greeting cards. Not only is it cheaper to send a card through our app, but it's much faster and easier than going to the grocery store, buying a card, writing in it, then taking it to the post office and mailing it. By making this form of communication more convenient and cheaper, we hope greeting cards will regain the personal touch they once had especially during special occasions.
What’s the market potential for your solution?
Although most think that there is no opportunity, the greeting card industry is a $7 billion dollar industry. Hallmarks revenue shrunk from $4 billion in 2012 to $3.8 billion in 2014. American Greetings is still doing about $2 billion a year in sales. Although it may seem like a diminishing trend, we see it as a major opportunity. Now that we are in an on-demand economy, everyone expects everything to be done by the power of their fingerprints. This hasn't happened for greeting cards yet, and this is what we hope to accomplish.
Who are your customers?
Our focus is B2C for the time being, although we may pivot to B2B if we see fit in the future. We are going to be selling direct to consumers through our mobile app currently available on the iOS app store. Our initial target demographic is current users and fans of greeting card apps already available. Once they've seen we've built a solution where you're able to add your own handwriting to a card, we hope that they'll jump on board. Once we've gathered feedback from them, we're going to be targeting a broader market, everyone who sends greeting cards.
How will you reach your customers?
Of course we will start with Facebook ads targeting women (70% of greeting card senders) who are fans of companies such as Hallmark, American Greetings, and other greeting card apps. Another initial marketing plan is relatively unscalable but has the potential to be highly effective since it has not been done before and it directly reaches and gets the attention of very important potential customers. We plan to print out business card sized advertisements and stick them inside the greeting cards at the grocery store during late or early hours when nobody is there. That way, no one will hopefully see it and if they do, it would not be a major issue for the grocery stores where they'd come after us.
How will you make money?
We're selling physical greeting cards at $2.99 per card with free shipping inside the US. The cards cost us approximately $1 through a third party printer, and that includes their shipping and processing charge. This will allow us to be very profitable as we have no operating costs since the printing and shipping of the cards is outsourced.
What kind of partners will you need to make, support and distribute your solution?
A major partnership we want to solidify is that during times of tragedy, a user would be able to send a greeting card to the effected people. The partnership isn't to cover the cost but to ensure that the cards get delivered to the right people. Other partnerships would be with hospitals to allow users to send patients, especially children, cards to make their days. Also, when the volume of orders increases, the cost of each card will decrease allowing for greater margins. In addition, we plan on opening up our platform so that individual artists will have an opportunity to showcase their work.
What will your expenses include?
Our biggest expenses at this time are designing the cards. Our engineers are all co-founders, so there are no expenses in terms of people thus far.
Who is your competition and how do you differ?
Our main competitor is feltapp.com. They were actually on Shark Tank and were invested in by Kevin O'Leary, which is an extremely good sign for us. The issue with their product is that the user adds their handwriting using their fingers to add their handwriting by drawing on the screen. This doesn't allow for authentic handwriting to be captured. With our proprietary code, the user adds their handwriting by writing what they want on a piece of paper and taking a picture of it, and our algorithm takes the handwriting and places it on the card seamlessly; all the printer prints is the handwriting. This is also how we're superior than inkly.com. The printer will only print the handwriting, so it looks as if you physically wrote inside the card.