The founder of HGOC believe that new and innovative disposable single-use oral care products are the primary reason for the growth in this small but expanding dental floss sub-category known as convenience floss products. HGOC believes that this will continue well into the future. In 1996, total global sales at factory billings were less than $20m. Currently, the global market for dental flossers is estimated at over $500m, and it is estimated that less than 40% of the potential users maintain a daily flossing routine.
Based on HGOC’s belief that new, innovative patented oral care products will drive this industry, HGOC acquired the exclusive patent rights in May, 2019 from HGOC’s President for the company’s three product lines. Upon funding the construction of the first two semi-automatic machine centers will be built under the direction of the CEO who has fabricated more than ten machine centers. The development process will include part drawings, part fabrication, polymer, textile, assembly, de-bug and machine activation.
HGOC’s opportunity lies in its ability to build the sales in multiple trade classes of the first two patented oral care product lines, which would include multiple put-ups and line extensions.
HGOC believes that once a critical mass is achieved other complementary oral care products can be added to exploit HGOC’s customer base, which will increase the company’s core product range and overall sales and gross profits dollars.
With HGOC's first two new patented products and infrastructure, it is poised to expand rapidly with annual production capacity to sell $1,800,000 at 80% machine utilization at factory billings delivering a dead net profit of 27% during its first 12-months of operation. Its corporate infrastructure will be geared towards handling large increases in sales volume with minimal increases in fixed expenses enabling high levels of incremental profits to fall to the bottom line.
HGOC’s strength and profitability lies in the fact that it is a lean and hungry merchandising company, which will be staffed with experienced marketing professionals who sell innovative patented products with a complete marketing and sales apparatus.
Funding is required to exploit this opportunity. Within four years, HGOC projects sales should exceed $10 million with after-tax profit approximating 35% of sales.