Jason Greenspan, founder and CEO of Whoosh, provides margin guidance for entrepreneurs building branded physical products.
Prediction Not checkable as stated
Greenspan says Whoosh is on track for $5M to $10M 2016 revenue
“Yeah, so our first year that we did this we were just under a million dollars. Our second year that we were doing this, we were just around over two and we're on track this year between, between five and 10.”
Insight
Traditional cleaners target inert glass and fail on modern electronics, says Greenspan
“Using standard over-the-counter cleaners just aren't up to snuff. Those technologies were developed, you know either in the, most of them were developed in the early night, early, early 20th century, and haven't changed since. And they were designed, you know,…”
Assertion Partly supported
Greenspan claims Whoosh Screen Shine is non-toxic and resists fingerprints
“And our formulation, what's really cool about our stuff is it's completely non-toxic. So if you go online and see some of our videos on YouTube, whatever it is you know, we show it non-toxic. I do a demo where I sprayed it in my mouth to show how clean the pro…”
Insight
Physical retailers require 35% to 50% gross margins, says Jason Greenspan
“Most retailers today are looking for, you know, roughly between a, I would say a 35 to, ah, 50 points of gross margin, so they can afford, you know, the rent, the store, the staff, all that kind of stuff.”
Insight
Jason Greenspan claims most CPG companies operate at roughly 5% net margin
“Yeah, net bottom line, most, if you look at most consumer product goods companies, they're netting around five percent, right?
So, everybody's a bit different, but if you look at, you know, other companies like Cadbury's or electronics companies, you know, loo…”
Disclosure
Whoosh grew primarily through wholesale channels rather than e-commerce, says Greenspan
“Our business has really grown through the wholesale business versus the e-commerce business”