two pages Persuasive Business Letter due after 40 hours

Alpha Technology

SmartShades

10/01/2018

Aaron M. Kohgadai

Anson Huang

Wenjun Feng

Charles Wat

Andrew Brigg

Executive Summary

Alpha Technology has designed the worlds smartest pair of glasses, SmartShades. SmartShades will replace your traditional sunglasses and prescription glasses with its state of the art technology. Just like traditional glasses, our frames and lens protect customer’s eyes from the sun’s harmful rays, and correct vision for near and far sighted users; but it does much more than that.

The smart glasses industry is virtually untapped with the possibility of huge growth; with almost no competition, Alpha Technology is the only company that offers smart glasses that improve the daily lives of its customers. SmartShades have built-in cameras and sensors, long battery life, GPS technology, LTE capability, and much more. Our special patented lens projects images directly on the glass, which is only visible for the user. The advanced lens projection users with notifications such as calls, text, and emails, without the need to take out your smartphone.

SmartShades takes eyewear a step further. Our frames integrates sensors that alert users of incoming dangers during driving, walking, or running; our built-in cameras allow users to record, snap photos, and transfer the data by syncing their SmartShades to their smartphone. Also, SmartShades has internal storage that allows users to store photos and videos, contacts, music, etc., without the use of a smartphone. Each model of SmartShades is equipped with GPS hardware, making it possible for users to use their device as a navigation system; thus, working without the need of a smartphone. Lastly, some models have LTE capability, allowing uses to connect to the web directly from their SmartShades.

More than two-third of the world population depend on some form of vision correction eyewear; therefore, our potential customers are roughly 60-70% of all adults. Every few years, eyeglass users must get their eyes retest by an optometrist. Alpha Technology’s one of a kind lens allows users to get tested by simply using the SmartShades’ application with your smartphone. With our lens, customers no longer need to spend more money on replacement lens, it could be done through the app.

SmartShades is getting world-wide attention for its innovative technology and beautiful design. We have designed chic, yet durable frames at an affordable price. For those who have a passion for fashion, we have partnered with famous designer brands and integrated our SmartShades technology into the frame; these frames are for both sunglasses and prescription glasses. That being said, we have expanded advertisement to social media in order to target a different demographic. With our newly added kiosk, Alpha Technology can now allow users to try on and test SmartShades for themselves; more people are learning about SmartShades every day.

SmartShades comes in two different configurations, standard and advanced. Depending on the configuration and frame, the retail cost ranges from a few hundred dollars to a few thousand. Monthly insurance options are available to protect your device from accidental damage or defects which creates a peace of mind. Our prices have created numerous customers which has inevitably increased our yearly profit. SmartShades is in its third year of sales and we project massive increase in sales by the next two years.

The world has smartphones, smart tablets, smart watches, and now SmartShades. SmartShades, this product will change the way we see the world.

Background

Alpha Technology was founded in San Francisco, CA in 2013. For the past few years, we’ve assembled an experienced team of computer, mechanical, software, and electrical engineers, financial analyst, designers, marketing professionals, and dedicated sales representatives to expand our brand. In the fall of 2015, our first model of SmartShades were released after years of planning, developing, and constant improvements to ensure our final product was the best in the market.

Since our product launch, we are proud to share that SmartShades has received a 98% approval rating from our customers. Alpha Technology thrives to connect users to our products by providing the best quality materials in the market. We have a support team that provides technical service to our customers who are experiencing issues with SmartShades. Alpha Technology is determined to change the eyeglass industry by continuing to create amazing sunglasses and prescription glasses for all users. We are here to show the world what they have been missing from their traditional pair of glasses.

Proposal

In order fulfill the growing demand of SmartShades, we seek $1,500,000 for a 10% stake in our company. Furthermore, your investment will be used for advertisement so that we are able to target more customers.

Market Analysis

The smart glasses industry is virtually untouched; the social media platform, SnapChat, has created sunglasses capable of taking pictures and recording video, called Spectacles. The sole purpose of SnapChat Spectacles are to provide hands-free recording for their smartphone app.

In 2012, Google released a smart glasses prototype, but failed to illustrate the benefits of their idea. Google’s failure to move forward with their design was due to its invasive attachment, minimal features, and high retail cost. Additionally, sunglass and eyeglass lens manufacturers are becoming insignificant, such as Zulu-Glasses; Alpha Technology constructs its own specially designed and patented lens, which minimizes manufacturing cost.

Benefits

It is estimated that roughly 75% of the adult population use some sort of vision correction, while 64% of those adults wear glasses. We project that as years go on, more people will require glasses for vision correction, not including people who wear sunglasses or for fashion.

Every two years, prescription glasses users are required to retest their vision as it tends to change every year. Our patented lens changes the number of their prescription by simply using the SmartShades app on their smartphone. The application has a built-in virtual optometrist that guides customers through a typical eye exam. Once the exam is completed, the lens automatically corrects itself to provide the user with the clearest vision. The lens also has images displayed on the glass lens such as incoming calls, messages, alerts, weather forecast, and more. Consumers do not need to look at their smartphones in order to view their notifications. SmartShades are long-term investments which do not need to be changed every two years.

Marketing Plan

Alpha Technology has taken advantage of free-web based social media platforms to promote our products, such as YouTube, Facebook, Instagram, SnapChat, Twitter, and Pinterest. Social media creates opportunities to reach majority of our users. We have also partnered with users of social media platforms that have a large follower base, who have demonstrated our product and given their reviews. Customer who have purchased SmartShades through social media accounts have received a promotional code for certain discounts, such as free shipping.

Moreover, we are beginning to create kiosk located in malls to help promote the product by allowing customers to try on and demo the product. We would like to expand to billboard and video advertisements to reach more customers.

Finance

Our products range from $450.00 to $2,500.00. This is your typical range for normal prescription glasses and sunglasses. We provide a more affordable range of frames, with two configurations of our SmartShades technology, to designer brands such as Gucci, Prada, and Versace. Depending on the brand, whether its sunglasses or prescription glasses, and the type of configuration, the cost will vary. The cost to manufacture our glasses is $150.00 to $1000.00. For example, if we sell our low end frames and configuration for prescription glasses, it will cost $150.00 to produce, which will sell it for $450.00, a profit of $300.00. The glasses will be a one-time cost. We will provide free technical assistance for over the phone or chat support by using the SmartShades app. Customers can pay monthly for insurance at a low fix rates if they experience accidental damage to the product, such as broken lens or frames. Each device comes with a limited one year warranty covering any manufacturing defects to the hardware, including frames and glasses.

The following tables and graph shows our past and present cost, sales, and profit, for year 1 through 3, and our expected growth in the next two years, year 4 and 5:

Analysis
Year	1	2	3	4	5
Variable Costs/Total Costs
Raw Materials	$ 7,000.00	$ 12,000.00	$ 17,000.00	$ 25,000.00	$ 40,000.00
Labor	5,000.00	6,000.00	8,000.00	10,000.00	10,000.00
Advanced Metals	10,000.00	14,000.00	18,000.00	23,000.00	30,000.00
Total Variable Costs	$ 22,000.00	$ 32,000.00	$ 43,000.00	$ 58,000.00	$ 80,000.00
Overhead Expenses	6000	9000	15000	20000	25000
Fixed Costs	40000	50000	60000	70000	80000
Total Costs	$ 68,000.00	$ 91,000.00	$ 118,000.00	$ 148,000.00	$ 185,000.00
Sales Projection Profit	$ (250,000.00)	$ (50,000.00)	$ 300,000.00	$ 700,000.00	$ 1,500,000.00
Break Even Point	$ 300,000.00	$ 400,000.00	$ 500,000.00	$ 600,000.00	$ 700,000.00

	Cost	Price	Profit	Monthly Insurance Cost
Gucci	$150	$450	$300	$10
Prada	$600	$1,300	$700	$20
Versace	$1,000	$2,500	$1,500	$30

Conclusion

As the glasses industry continues to grow with customers, so will SmartShades. SmartShades will replace your traditional pair of prescription or sunglasses; such like the smartphone replaced the traditional cellphone and landline, smart tablets replaced traditional pen and paper, and smart watches replaced traditional wristwatches. SmartShades will be a fashion icon, but will also provide users with convenient ways of assisting you in your daily life, keep you connected with others, and keep you hands-free when you are performing normal task. Help Alpha Technology get a pair of SmartShades for each person who needs prescription glasses, who want to protect their eyes from the sun, and who want to complete their outfit by accessorizing with our glasses. With your investment, we can make our already popular product grow into the only pair of glasses you’ll ever need.

Break Even Analysis

Total Costs 68000 91000 118000 148000 185000 Sales Projection Profit -250000 -50000 300000 700000 1500000 Break Even Point 300000 400000 500000 600000 700000