Positive Results Include New Organic Customers Added, Order Conversion Rate and Average Order Value
NEWTOWN, CT – June 20th, 2016 (Accesswire) – Halitron, Inc. (the “Company”) (OTC: HAON), today is excited to announce its next phase of growth through digital marketing will yield a 75% increase in sales and a much lower customer acquisition cost.
One of Halitron Inc.’s (OTC Pink: HAON) business units is vertically integrated with manufacturing located just over the border of San Diego, CA. It consists of four niche branded sales outlets in the US marketing scrapbooking, archiving, and printed products servicing businesses and consumers totaling over 400,000 customers.
In its most recent analysis, the brands performed extremely well considering the distressed status at the time of acquisition by Halitron, Inc. The most recent sales campaign was segmented by expected customer value level to be generated, from high (A), which is current active customers to low (D), which is our prospecting list.
With the order rate at 0.7% for the most valuable customers (A), we are very excited to implement the next phase of growth by prospecting for new customers and adding in digital marketing services dramatically lowering the customer acquisition cost.
The table below represents the Average Order Value for each brand:
|Mean Order Value||$140.27|
Management is forecasting improved orders rates by implement digital marketing techniques, new product introductions, and special promotions to re-engage its customer base. Based on an increase in the forecasted order rate to industry standards of 2% for A’s, 1.25% for B’s, .75% for C’s, and .5% for D’s, Management can increase sales by 75% over the previous analysis. An additional benefit of increased order rates based on weighting between the brands results in a 16% increase in AOV.
Prior to our new efforts, the brands generated 922 new customers or 42% of total customer orders for the cycle. With our new digital marketing platform, Management is confident that sales will further increase.
Cash Conversion Cycle and Margin Analysis
Our cash conversion cycle is very attractive over a 13-week marketing cycle. If we spend $1 in marketing, that dollar will turn into $4 in sales over a 13-week period. The business operates at 75% gross profit or $3 and direct margins after marketing expense of 25% or $1 is estimated at 50% gross profit after marketing or $2. Now that the base business model has scale through the acquisitions made throughout 2016, all incremental sales generated by digital marketing will contribute to the bottom line at 65% on every new sales dollar.
|$||% of Sales|
|Forecasted Average Order Value||$125.81||100%|
|Direct Gross Margin||$94.36||75%|
|Direct Margin After Marketing Expense||$62.90||50%|
In order to implement our growth plan, Management is in financing negotiations to invest in marketing which will enhance sales growth in the range of $3M to $5M. The range is based on how aggressively Management reinvests back into marketing to start the sales cycle over again.
About Halitron, Inc.
Halitron, Inc., an equity holding company, is focused on acquiring sales, marketing, and manufacturing businesses, and then rolling them into an efficient, low-cost operating infrastructure. The Company is structured with two Strategic Business Units; Sales & Marketing Division and a Manufacturing Division. Management targets operating entities that can either benefit from current operating infrastructure or operate autonomously and offer an additional product or service to scale existing operations. For more information on Halitron, Inc., please visit: www.halitroninc.com.
To learn more about our business model, please visit: http://www.otcmarkets.com/stock/HAON/video-and-presentations
Sales & Marketing Division – Companies that have operations in traditional marketing services and branded sales opportunities.
Current Equity Assets/Holdings:
- NDG Holdings, Inc. – digital marketing
- www.PiecesInPlaces.com – brand sales
- www.ArchivalMuseumSupplies.com – brand sales
- www.ArchivalPhotoPages.com – brand sales
- www.CinchSigns.com – brand sales
Manufacturing Division – Companies that have operations in the manufacturing industry.
Current Asset/Equity Holdings:
- PRD Holdings Inc. – Mexican-based manufacturing
Safe Harbor Statement:
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words “may,” “will,” “should,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company’s control.