The Dog Diaper is cost-effective
to manufacture with automated thermal heat-sealing
equipment, using platen dies and cut and seal dies.
The Dog Diaper is fully
disposable and is made of opaque low density polyethylene film in solid colors and Velcro tapes in matching colors. The product could be sold in packs
of 24 diapers each, or less, to be decided.
Furthermore, absorbent pads would be
provided as an option for the pouch for
fluid waste as a separate buy.
Even in its initial stage of commercialization, the Dog Diaper allows
for a good markup ratio that would be higher
with increased volume and production
efficiencies with manufacturing companies having substantial capabilities.
The production of the Dog
Diaper may gradually increase in volume
from low to medium to full
production.
The Dog
Diaper product would allow for a very good markup ratio,
from 3x-5x or better above the
wholesale price, depending on production volume,
and the wholesale price per unit.
The wholesale price in the U.S.,
according with approximate estimates from U.S.
manufacturers would be about $0.20 - $0.30 per diaper,
for a production volume of 6 million
diapers, that equals 250,000 pack units of 24 diapers each. In the U.S. the wholesale price would be higher than
what it would be in either China and/or South
Korea.
Accordingly, there are 2 examples below:
a) A wholesale price of $0.20 per diaper would result in a wholesale
price of $4.80 for a pack of 24 diapers. Assuming a 3x markup above
the wholesale price, the retail price of a pack of 24 diapers would be $14.40, i.e. $0.60 per diaper. The profit would be $0.40 per diaper.
b) A wholesale price of $0.10 per diaper
would result in a wholesale
price of $2.40 for a pack of 24 diapers. Assuming a 6x markup
above the
wholesale price, the retail price of a pack of 24 diapers
would be $14.40, i.e. $0.60 per diaper. The profit would be $0.50
per diaper.
Assuming
that the product is used by only 1% of the 30
million U.S. dogs that populate urban and suburban areas, i.e. 300,000 dogs, based on an average usage of 3
diapers per day per dog, which would represent 1,095
diapers per year per dog, the yearly demand for the Dog Diaper
would be 328,500,000 diapers. Assuming
a $0.60 retail selling price per diaper, reflecting a 6x markup, as
per example b) 328,500,000 x $0.60 =
$197,100,000 annual sales at 1% share
goal. The Dog Diaper generates mass merchandising.