SAKL in the Right Place Right Time>article> Qui
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Posted On: 06/01/2016 12:22:10 PM
SAKL in the Right Place Right Time>article>
Quick quiz: Would you rather buy a luxury item you can proudly display on your mantle forever, or would you rather make a great memory you can recall forever, and smile when you do? Twenty years ago, young adults would have likely said they'll forego the memory and buy the item. Now though, the proverbial younger generation is less into stuff and more into fun activities. And, it's a paradigm shift that plays right into the hand Sack Lunch Productions Inc. (OTCMKTS:SAKL) is holding.
You're likely more familiar with Sack Lunch Productions than you think. It's the name behind event-oriented businesses called Slide the City, Lantern Fest, The Dirty Dash, the Color Me Rad 5K run, and most recently, the Trike Riot. Those are a 1000-foot Slip-n-Slide, a flying lantern release, a mud run, a color-splashing fun run, and a tricycle riding course for kids of all ages and sizes. The events aren't just fun - they're FUN.
They're also surprisingly profitable too. Though attendance and per-participant varies, with the average revenue of $30 per participation being at the low end of the scale, as is the average even attendance of 2500, gross revenue of $75,000 per event is a low-end expectation...
... not that SAKL hasn't done some more number crunching of its own. This year, it expects to host 250 events and drive $18 million worth of revenue per event, up 86% from 2015's top line. Some of those are being put on by Sack Lunch Productions itself, while others are being hosted by franchisees. Whatever the case, that works out to average revenue of $72,000 per event, with the franchised ones being low-cost to no-cost events for SAKL.
Better still, 2016 is poised to be a serious breakout year for SAKL in terms of profits. Net income is projected to swell from last year's $300,000 to $3.5 million. Not bad for an $8.9 million company.
At the heart of the growth Sack Lunch Productions is enjoying is the meeting of need most consumers - and most millennials in particular - didn't even know they had.
In a recent poll of millennials and the gen-y crowd, 78% of them said would rather spend money on an event or experience rather than a thing. As for the "why?," this segment of the population has really come to terms with the idea that goods like cars and clothes only lose value, and the thrill of owning them is fleeting.
Fanning those flames is Faceook (NASDAQ:FB). Facebook is littered with stories of members' activities and experiences. Seeing their friends do activities and experience things is the new "me too" market. The proof? A hefty 69% of millennials acknowledge they have a fear of missing out on experiences other millennials are experiencing.
Thing is, it's not just millennials. Though they're taking the lead, gen-Xers, baby-boomers, and most other groupings are starting to want experiences and memories more than physical items.
As for the future, this year's expected $18 million in revenue only scratches the surface of the still-nascent "experience" market worth an estimated $20 billion per year.
There's nothing else out there like Sack Lunch Productions tapping directly into that market.
http://www.smallcapnetwork.com/Sack-Lunch-Pro.../1/id/707/
Quick quiz: Would you rather buy a luxury item you can proudly display on your mantle forever, or would you rather make a great memory you can recall forever, and smile when you do? Twenty years ago, young adults would have likely said they'll forego the memory and buy the item. Now though, the proverbial younger generation is less into stuff and more into fun activities. And, it's a paradigm shift that plays right into the hand Sack Lunch Productions Inc. (OTCMKTS:SAKL) is holding.
You're likely more familiar with Sack Lunch Productions than you think. It's the name behind event-oriented businesses called Slide the City, Lantern Fest, The Dirty Dash, the Color Me Rad 5K run, and most recently, the Trike Riot. Those are a 1000-foot Slip-n-Slide, a flying lantern release, a mud run, a color-splashing fun run, and a tricycle riding course for kids of all ages and sizes. The events aren't just fun - they're FUN.
They're also surprisingly profitable too. Though attendance and per-participant varies, with the average revenue of $30 per participation being at the low end of the scale, as is the average even attendance of 2500, gross revenue of $75,000 per event is a low-end expectation...
... not that SAKL hasn't done some more number crunching of its own. This year, it expects to host 250 events and drive $18 million worth of revenue per event, up 86% from 2015's top line. Some of those are being put on by Sack Lunch Productions itself, while others are being hosted by franchisees. Whatever the case, that works out to average revenue of $72,000 per event, with the franchised ones being low-cost to no-cost events for SAKL.
Better still, 2016 is poised to be a serious breakout year for SAKL in terms of profits. Net income is projected to swell from last year's $300,000 to $3.5 million. Not bad for an $8.9 million company.
At the heart of the growth Sack Lunch Productions is enjoying is the meeting of need most consumers - and most millennials in particular - didn't even know they had.
In a recent poll of millennials and the gen-y crowd, 78% of them said would rather spend money on an event or experience rather than a thing. As for the "why?," this segment of the population has really come to terms with the idea that goods like cars and clothes only lose value, and the thrill of owning them is fleeting.
Fanning those flames is Faceook (NASDAQ:FB). Facebook is littered with stories of members' activities and experiences. Seeing their friends do activities and experience things is the new "me too" market. The proof? A hefty 69% of millennials acknowledge they have a fear of missing out on experiences other millennials are experiencing.
Thing is, it's not just millennials. Though they're taking the lead, gen-Xers, baby-boomers, and most other groupings are starting to want experiences and memories more than physical items.
As for the future, this year's expected $18 million in revenue only scratches the surface of the still-nascent "experience" market worth an estimated $20 billion per year.
There's nothing else out there like Sack Lunch Productions tapping directly into that market.
http://www.smallcapnetwork.com/Sack-Lunch-Pro.../1/id/707/
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