Estimated cost of opening Lawrence location
|Item||Cost (Low)||Cost (High)|
|Walk In Cooler (Backstock)||$ 6,000.00||$ 8,000.00|
|Two Door Cooler||$ 2,000.00||$ 3,000.00|
|Two Door Cooler||$ 2,000.00||$ 3,000.00|
|Ice Cream Freezer||$ 300.00||$ 700.00|
|Beef Freezer||$ 300.00||$ 700.00|
|Back Stock Freezer||$ 400.00||$ 800.00|
|Shelving / Furniture||$ 1,000.00||$ 1,500.00|
|Cash Register||$ 600.00||$ 800.00|
|Leasehold Improvements||$ 1,000.00||$ 2,000.00|
|Signage||$ 1,500.00||$ 2,500.00|
|Marketing / Advertising||$ 2,000.00||$ 3,000.00|
|3 Months Rent (Inc CAM)||$ 3,000.00||$ 6,000.00|
|3 Months Utilities||$ 900.00||$ 1,200.00|
|Total||$ 21,000.00||$ 33,200.00|
Estimated cash flow projection from adding the yogurt line
(Whereas product A is wholesale and product B is retail)
Dear loyal customers,
Here we are a year later after our first equity offering, and things have gone farther forward then we could of hoped for. We appreciate everyone’s generosity in their purchase of Iwig Family Dairy LLC equity shares. We were able to enact part of our plans, but due to the requirements of Kaw Valley Bank and the FSA, we were unable to purchase and install a short time pasteurizer. This pasteurizer would have saved us upwards of $1000 in operating costs per month. However, we were able to open a new retail location on Gage which has been hugely successful for us. Also, we were planning to use some of the money to start a generic plastic line. This would have been a very low margin product line that when discussed with many of our customers and investors, we found that most people were against the idea all together.
Now, going forward, we believe that due to the success of our gage retail store, the retail store model would also be highly profitable in Lawrence. This being said, there are start-up costs to be considered when opening this new location. We will have to outfit it with coolers, equipment, etc. The state of Kansas has provided a new program to Kansas businesses which allows them to sell shares in their business without the rigorous filing procedure we went through with our first offering. We are the first Kansas business to be approved for this program. This allows you to invest in our business quickly and effectively.
We believe the retail store model will allow us to continue our work at the dairy in a comfortable range of profitability. In the future, we also hope to offer yogurt made at our dairy which will be packaged in glass jars to preserve flavor, just like our milk. This product expansion could also be funded by the sale of equity shares in the company. If you would like to invest in our business and help us realize our goal of opening a new Lawrence location and continuing the growth of the dairy please call us at 785-379-9514 or send us an email at email@example.com. First quarter financials are available on request.
Owner – Iwig Family Dairy LLC.
As many of you know, we did a little experiment not too far back at the KC T-Bones game in early May. Using our new mobile plate freezer, we set up at the ball game and sold our homemade ice cream. Well, as far as we are concerned, the experiment was a success and everyone seemed to love the ice cream (especially on as hot of a day as it was). So, we’ve decided to try and grow the number of locations that we are able to bring the mobile ice cream cart.
These places currently include:
Top City Thursdays (http://www.topcitythursday.com/), where we will park the cart down town by Wolf’s Camera from 5pm – 8pm.
Red, White, and Blue BBQ Contest at the Expocenter, May 27th and 28th from 4pm-11pm
Summer Fest at Most Pure Heart, May 28th 8am – 6pm
Midweek Farmers Market – Wednesday morning’s in front of the capital
Jenny, a young cow, injured her right hind leg, which means she cannot walk up the ramp to the milk barn to get milked…We hand milk them when this happens so that they can get back to full strength and continue producing milk after they get better. The milk we collect from this process is bottle fed to our baby calves. Here is Tim milking Jenny, she’s a wonderful gal.
Had a slow start to the Farmers Market season yesterday with many customers unable to find our truck way down with the food vendors. When they did find us, the noise from the food vendors generators made it extremely difficult to carry on a conversation. Not sure why our farm produce has to be placed with food vendors and not out on the main part of the Market or at least on the other end. Our reefer unit is not terribly loud especially when we are on an outside row. Planning to come back, but if sales continue to be hindered by our location not sure if we will attend all summer.
Well, this Monday is the first day of the Iwig Mobile Ice Cream Experiment. We will be at the ball diamonds on 29th and Croco during the Topeka Golden Giants game selling ice cream. Stop by and say hi! We will have vanilla and chocolate 1/2 pints and pints of our various flavors!
As everyone may know, we take the containers we put our milk into seriously. We believe that the glass bottles preserve milks natural taste so that our customers get the best tasting product they can buy. The glass bottles are also good for the environment, as we wash and use them again for bottling. This week, we received a new order of bottles from our supplier (almost 1600 1/2 Gal Bottles). The order went out for these bottles on the 21st of April and we received them the 1st of May.
Today the plant manager told me that he had already gone through 1/2 of our new half-gallon supply. That means in three days, we have put our milk into 800 new bottles. This is exciting news for us, business seems to be up. However, it’s also kind of scary as well due to the fact that statistically we will not get a good percentage of these bottles back. As a matter of fact, last year we ordered 15,000 new 1/2 gallon bottles alone.
So, if you have a bottle under your sink, in the garage, rolling in your trunk, stop by one of our locations and let us pay you for it. Better yet, if you haven’t had our milk in a while, bring your bottles back and get some more. We really want to clean it, care for it, and fill it back up so you or someone else can enjoy our fresh dairy products.