View Full Version : (CrowdCube) Golf Penny Auctions

08-21-2012, 09:13 AM
Golf Penny Auctions
Investment target: £ 350,000
Equity offered: 35%


An online pay for bid auction providing all inclusive Golf Holidays to top destinations at 95% discounts. Our goal is to eventually provide 10,000 holidays per year, accounting for 1% of the existing UK Golf Holiday market. Initially, our target is 4 auctions per month for year one generating after tax profits forecasts of £160k.

A player registers on our site (www.bidtogolf.co.uk (http://www.bidtogolf.co.uk) [not yet active]) and deposits funds into their Golf Penny Auction cash account; then the player buys bid tokens at par (£1 =1 bid) and the bid tokens are credited to the playerís Bid Account. The player chooses from our 8 daily auction choices placing one bid at a time; each bid accrues 1p to the auction selling price and adds 30 seconds to the auction countdown timer e.g. a 7 day Golf Holiday for four to Valderrama including travel, accommodation, green fees (etc.) valued at £6,000 is guaranteed to sell at auction for less than £200.

We accomplish this by collecting 18,000 bids at £1 each giving us turnover of £18,000; this requires about 1,800 bidders as the average spend per auction per bidder is £10. The auction starts with a zero price and a pre-set timer (e.g. 8 hours) that begins to countdown by seconds; each bid adds 1p to the auction price and an extra 30 seconds to the timer. This process is designed around a mathematical algorithm so that the declining time and increasing price meet at the set point (in our case a 3x factor) e.g. £18,000 in bids generates 18,000 bids x 1p for a total of £180. We publish a guide price for each auction specifying that the auction will sell for less than a given figure, in this case, less than £200. We donít use the actual set point because the algorithm and timer may vary a millisecond and close at £179.99 or £180.01, so to prevent dispute we use theí less thaní format and allow the algorithm to close naturally.

Based on low achievable sales thresholds, we target 4 auctions per month (48) during year one; 96 Y2; 144 Y3; 240 Y4 and 360 in year five. Existing pay for bid online auctions, selling general merchandise, are completing up to 100 auctions per day. The brilliance and simplicity of our model allows us to generate solid returns every year from a targeted audience. We are aiming to allow three years to repay the equity investment of £350,000 while issuing dividends from year one. Our equity investors should be able to recoup their investment within 3 years and their share of the profits (35%) is projected to earn them at least £500,000 over the first five years.

About George Schofield, MBA

The principal and founder of Ten Penny Auctions is a seasoned businessman with an enviable history of success and innovation across a broad spectrum of industries. Highly regarded by employees and equally respected by his peers, he has a reputation for astute decisions and an unwavering commitment to excellence and profitability.

His expertise has been tempered in the crucible of economic downturns, major competition, adverse market conditions, and financial uncertainty. Maintaining a core belief of keeping one on the goal while keeping the other eye on the ball, he has weathered adversity and proved triumphant in 75% of ventures across manufacturing, retail sales, foodservice and hospitality, and online gaming; in all disciplines, he has demonstrated resilience in achieving sales goals and delivering exceptional customer service.

A committed advocate of Open Book Management and profit sharing, he has repeatedly proven his ability to motivate and retain top employees who are happy, productive and dedicated to sharing in their leaderís vision. His management style of leadership by example serves to inculcate pride, drive and belief in all employees who relish ownership of their role and recognize the importance of their participation.
Over 100,000 hours of hands-on experience spanning thirty seven years across multiple business genres has provided George with a special blend of skills including an innate sense of customer expectations. Supporting this vast experience is a Masterís degree in Business Administration earned at the Haskayne School of Business, University of Calgary renowned for its devotion to uncompromising ethical corporate practice.

Lelocks Trent
08-22-2012, 05:51 PM
So is this like a swoopo.com clone but for Golf related prizes?