The Flying Saucer is a skateboard with a deck that is round in shape. A center-placed caster wheel is accompanied by three smaller caster wheels placed about the perimeter of this round deck, which has a surrounding raised lip. A small handle extends from one side of the Flying Saucer to make it very easy to carry, as well.

The Flying Saucer provides a new avenue to explore in this “extreme” sport category, and by allowing new maneuvers and motions on this new design in skateboards. And with the rapid rate of growth in participation in skateboarding and other extreme sports, not to mention the rapid growth in sales for these sports, the Flying Saucer is sure to rapidly grow into a high sales product.

Please read on to learn more about the Flying Saucer, which your company is invited to take into its product line.

Features & Benefits

Of

The Flying Saucer

Features
  • Skateboard deck:
  • Made of treated and laminated maple wood,
  • In 16” disc format,
  • With high-grade grip top,
  • With raised lip about perimeter, and
  • With 4” handle built into the edge.
  • Center-placed wheel:
  • Free-rotating caster wheel,
  • Made of urethane,
  • Of 78 mm size, and
  • With durometer rating of 100A.
  • Three perimeter wheels:
  • Free-rotating caster wheels,
  • Made of urethane,
  • Of 52 mm size,
  • With durometer ratings of 92A, and
  • In positions of 12:00, 4:00 and 8:00.
  • Single axle truck mounts.

Benefits
  • Completely new design for skateboards.
  • Allows new and different motions and maneuvers.
  • Allows quick change in direction.
  • Offers an entirely new format of a popular sport.
  • Combines the activities of skateboarding, snowboarding, boogie boarding and rollerblading into an entirely new “extreme” sport.
  • Appeals to consumers who remain with these sports for long periods.
  • Can join a product category of excellent sales growth.

SIC / Industry / Companies / Annual Sales
(in $ Billions)
3949 / Sporting & Athletic Goods / 2,158 / $10.636

The Flying Saucer would be manufactured by a company within this industry classification. These companies already manufacture skateboards and similar items such as snowboards, along with other sporting goods.

The following chart shows the recent sales history of this manufacturing industry:

Source: U.S. Bureau of the Census

Annual sales of this Sporting & Athletic Goods industry grew 11.84 percent in the last six years reported, and the Census Bureau predicts that sales will have increased to approximately $12.45 billion for 2004.

Although sales seem dull in development for the last three years shown, this industry has definitely improved in profitability. For example, in 2002 cost of materials dropped 9.5 percent, labor costs decreased 6.9 percent and other smaller categories of expenses fell 28.6 percent in total. This means that total net profits were up 8.37 percent in this one year even though total gross sales only grew 0.41 percent for 2002.

Sales of this industry may be fluctuating slightly in this period, but this is no indication of trouble for these companies. While the U.S. does appear to have been in a slight economic recession for the latter half of the period shown in the chart, such events do not affect the sales of sporting goods. In fact, the Sporting Goods Manufacturers Association (SGMA) has released data that supports the fact that sporting goods sell better while the overall economy is at risk. In short, consumers spend more money on particular entertainment-type products during these times.

Sporting good materials that sell best in recent years are those that apply to free-form, or “extreme,” sports. Team sports and team games have substantially declined in participation in recent years, while the number of people participating in sports such as snowboarding and skateboarding has dramatically increased. In fact, there are more people riding skateboards than there are people playing the great American game of baseball, says the SGMA.

Skateboarding has increased dramatically in number of regular participants in recent years, and these numbers are expected to grow. According to U.S. Industry & Trade Outlook, the demographic consumer group most apt to these particular sports is growing larger, and their purchase potential is growing, too. This group is referred to as “Echo Boomers,” being children of parents from the Baby Boom generation. These 9-to-19 year olds are growing consumers of sporting goods, and in particular for skateboarding, snowboarding, in-line skating and mountain biking (all of which are classified as “extreme” sports), and their participation in such sports is expected to be sustained as they grow through this age group. As they grow older within this age group, they have more access to more money, and will be able to afford more equipment. Many sports equipment manufacturers are already focusing on this group in advertisements.

Wholesale Industry

Of

The Flying Saucer

SIC / Industry / Companies / Annual Sales
(in $ Billions)
5091 / Sporting & Recreation Goods / 9,732 / $34.376

The Flying Saucer can be distributed with skateboards, snowboards and other free-form sporting goods by the Sporting & Recreation Goods industry.

The following chart shows the recent sales history of the Sporting & Recreational Goods merchant wholesale industry:

Source: U.S. Bureau of the Census

Wholesale sales of Sporting Goods rose 14.34 percent in five-year period.

Retail Industry

Of

The Flying Saucer

SIC / Industry / Companies / Annual Sales
(in $ Billions)
5941 / Sporting Goods Stores / 54,222 / $28.913

Sporting Goods Stores can carry the Flying Saucer with other similar sporting good items.

The following chart shows the recent sales history of Sporting Goods Stores:

Source: U.S. Bureau of the Census

Annual sales of Sporting Goods Stores increased 9.23 percent in this five-year period.

Potential Need

For

The Flying Saucer

The Flying Saucer provides a completely new format

for the enjoyment of a very popular sport theme.

  • More than 11.5 million Americans participate in skateboarding activities, representing about 80 percent of all skateboarders worldwide.
  • This activity is now the second most popular “extreme” sport, and 10th highest of all sports in frequent participation. And it’s not a fly-by-night activity, either; the average skateboarder has faithfully participated for four-and-a-half years.
  • This number is growing rapidly, to boot. Since 1995, the number of active skateboarders has doubled and now ranks at the top of the list of highest increases in participation annually.
  • By its applicability of a new skateboard design that allows new skateboard participation, the Flying Saucer allows these millions of active participants to take their sport to a completely new format, with more challenges and more thrills.

The Flying Saucer provides this new format

to a very commercially successful sport theme.

  • As skateboarding grows in participation, so do the sales of skateboarding gear and equipment.
  • Last year, sales of skateboards and skateboard equipment rose to $1.5 billion dollars, and averaging about $70 per purchase. This is an increase of almost 40 percent, and in only three years.
  • This product field even leads sales in some categories. For example, skateboard footwear is now the best-selling of all athletic footwear, representing 28 percent of that market, and even selling more than sandals and jeans combined.
  • Not only in classes of new board equipment but in the category of new design as well, the Flying Saucer can join this rapidly growing sales fields.

The Flying Saucer provides this new format at an ideal time for sales.

  • Skateboarding is of greatest appeal to younger consumers, and more than half of the regular participants in these sports are of the “Echo Boomer” generation.
  • This consistently-growing age group is already credited with highest sales of skateboarding equipment, and is expected to spend even more as they grow older.
  • Even despite signs of a troubled economy, sales from this category and to these consumers are not at risk. A recent study found that more than half of Americans active in sporting activities make purchases of major sporting equipment every six months during such economic periods.
  • With appeal to an ideal age group that continues to grow, and during a time when sales for such equipment show strong growth despite a weak economy, the Flying Saucer can be of immediate appeal and success in sales.

Sources: Sporting Goods Manufacturers Association, Sports & Participation, The Sporting Goods Market, Board-Trac, “Teens & Pre-Teens Participation Trends,” and “SGMA Economy & Leisure Study.”

Potential Consumer Base

For

The Flying Saucer

The Flying Saucer can appeal to the same users of skateboards and snowboards. These most likely consumers can be examined through different demographic categories.

The Flying Saucer is of most applicability to younger users, which make up the vast majority of skateboard and snowboard users.

Demographic Analysis
by Age / Skateboarders
n = 11,592,000
7 to 11 / 4,776,000 / 41.6 %
12 to 17 / 4,602,000 / 39.7 %
18 to 24 / 846,000 / 7.3 %
25 to 34 / 580,000 / 5.0 %
35 to 44 / 336,000 / 2.9 %
45 to 54 / 116,000 / 1.0 %
55 to 64 / 93,000 / 0.8 %
65 and older / 197,000 / 1.7 %

This most pertinent age group is known as “Echo Boomers,” or children of those from the Baby Boom generation. These “Echo Boomers” (ages 9 to 19 years) have record of high participation in these and similar sports, as well as high spending on relevant products. These high rates of participation and spending are expected to be maintained.

These young potential consumers are of families with income levels that can ensure the affordability of the Flying Saucer. A majority of these consumers are from households with above average income levels.

Demographic Analysis
by Income / Skateboarders
n = 11,592,000
Under $15,000 / 696,000 / 6.0 %
$15,000 - $24,999 / 1,090,000 / 9.4 %
$25,000 - $34,999 / 1,356,000 / 11.7 %
$35,000 - $49,999 / 1,901,000 / 16.4 %
$50,000 - $75,000 / 2,631,000 / 22.7 %
$75,000 and over / 3,907,000 / 33.7 %

Please note that over 80 percent of active skateboarders are under the age of 18, and that 56 percent are from households with above-average incomes.

Sources: Sporting Goods Manufacturers Association, Sports Participation Topline Report 2005, U.S. Industry & Trade Outlook and National Sporting Goods Association

Cost and Price Estimates

For

The Flying Saucer

All estimates for the possible costs and prices of a new, yet-to-be-manufactured item are very difficult to estimate. This difficulty is due to potential variations in the costs of initial materials, the rate of production for the item, and its initial consumer demand. As a result, these estimates are very difficult to comprise.

Moreover, research on estimated costs and prices is very restricted so as to avoid improper disclosure of the Flying Saucer while still in these beginning stages.

In order to provide further detailed information for consideration, however, such estimates should be offered. The “Best Estimate” enclosed within is primarily based upon pricing of similar products (when possible) by this applicable manufacturing category, current cost of necessary materials, and average value added for the applicable manufacturing industry.

These estimates are subject to change and are enclosed only to offer a preliminary means of evaluation of product value for the Flying Saucer. Of course only you, the manufacturer, could properly determine the costs and prices.

The estimates on potential costs and prices for the Flying Saucer, throughout the line of distributors, could be:

Low Range / Mid Range / High Range
Materials Cost
/ $14.11 / $16.94 / $20.32
Manufacturer’s Cost / $31.75 / $38.10 / $45.72
Wholesale Price / $54.62 / $65.54 / $78.65
Supplier’s Price / $74.77 / $89.72 / $107.67
Retail Price (MSRP) / $106.99 / $128.39 / $153.99

REMINDER: It is extremely important to remember that the above costs and prices are only estimates. Actual costs and prices can only be determined by manufacturing companies with a good understanding of their own production capabilities and by suppliers and outlets, based on the final prices offered to them.