Product: PeeJays, sleep wear/lounge wear for men, women and children with urinary dysfunction
When I was recovering from surgery that required a permanent urostomy (rerouting of the urinary track through an opening in the abdomen) I encountered a frustrating and uncomfortable issue; when sleeping I have to connect a bed-side collection bag to the urostomy pouch that is attached to my abdomen to collect the urine while I sleep. I have to run the tubing from the pouch up my pajama leg, then connect to the ostomy pouch. The tubing is uncomfortable against my skin and causes my PJs to ride up my leg. In addition, when I try to move in bed the weight of the collection bag pulls on the ostomy pouch causing it to leak (what a mess!) and the tubing causes the ostomy pouch to twist and restricts the flow from the pouch to the collection bag (more leaks!)
Previous to this surgery, I was admitted to the hospital several times for urinary track infections (UTIs) which required me to have a Foley catheter. I had the same issue with the night collection bag for the Foley, but the situation was only temporary as the Foley was removed after the UTI resolved.
Now faced with a permanent urostomy, I am determined to provide a solution to other urostomates, and individuals with continent diversions, including Foley catheters. It’s simple but elegant….PeeJays!
PeeJays are sleep and lounging wear with exit holes and fasteners to secure the external urine collection bag’s tubing and sleeves running down the outside legs of the PeeJays to hold and hide the collection bag’s tubing This simple but elegant design eliminates the discomfort of the tubing running inside the pajamas and keeps them from riding up the leg. The exit holes with fasteners provide the needed method of securing the tubing so that it does not pull on the ostomy pouch or indwelling catheter causing it to twist, eliminating leaks and discomfort. A matching night collection bag cover is also provided. Because who wants to look at their urine anyway?
Product design and development $2,500.00 Weeks 1-4
Production start-up $5,000.00 Weeks 4-8
Product Launch $2,500.00 Weeks 8-12
Funding Needed $10,000.00 12 Weeks
My background and how I will complete this project
As a 28 year ostomate and colon cancer survivor and survivor community advocate, I have connected with tens of thousands of cancer survivors and ostomates worldwide. I am a speaker at industry events, cancer and ostomy support group meetings nationwide. I have been recognized by the American Cancer Society as their Most Inspiration Colon Cancer Survivor (2005) and with the 2011 Greatest Comeback Award. http://www.youtube.com/watch?v=0PpX0ywqfh8
I am an author (www.randy.henniger.wix.com/cancerbooks) and moderate several online communities www.myccasupport.org and www.ostomyman.org and lead several social media sites https://www.facebook.com/ActiveOstomates and blogs www.activeostomates.wordpress.com
Making life better for cancer survivors and ostomates is my passion. My profession is executive leadership in product development, product and project planning, production and product line management. Product launches, marketing and promotional campaigns and sales and distribution channel management. More about me at http://www.linkedin.com/in/randyhenniger
Product Design and Development, $2,500, Weeks 1-4
I will engage the services of a local clothing designer to consult on the creation of the patterns for PeeJays.
Production Start-up, $5,000, Weeks 4-8
Once the patterns have been completed, I will contract with a US-based clothing manufacturer to produce the finished product on a “make to order” basis. This will reduce inventory liability and provide the users the greatest variety of selection.
Product Launch, $2,500, Weeks 8 -12
Once product design is completed and production capability is confirmed, I will begin promoting PeeJays though my established connections with end-users, ostomy support organization, ostomy nurses and cancer centers nationwide. Orders will be placed online through a shopping cart at www.activeostomates.com and fulfilled directly from a fulfillment house aligned with the clothing manufacturer.
A second step will be to offer PeeJays to hospitals and clinics through their established supply partners for patient clothing. Licensing of the PeeJay designs to the patient clothing suppliers is also an option.
Market and Financial Brief
The Total Available Market (TAM) for PeeJays is the more than 1 million ostomates in the US with 25% being urostomates. Growing at the rate of 25,000 each year. The Service Available Market (SAM) is approximately 250,000 end users with growth of 10% per year. As there are no competing products on the market today, I estimate a 10% penetration within 12-24 months, or 25,000 clients growing at 2,500 clients per year.. Based on a purchase of 4 PeeJays per client per year, that is 100,000 units at $20.00 per unit with a gross profit of $10.00 per unit or $1,000,000.00 annually. Operational expenses are estimated at $250,000 annually yielding a net profit (before tax) of $750,000.00 annually with growth of 10% compounded annually.
Hospital and Patient Clothing Supply Sales
The TAM for hospital and patient clothing supply for PeeJays is significantly greater than for end-users. It is estimated that more than 10 million patients receive Foley catheters (see Reference 1) at more than 20,000 US hospitals (see Ref 2) and clinics each year. Patient clothing is changed daily requiring a significant inventory with each clothing supply partner. It is estimated that the TAM for PeeJays either through supply directly to the medical facilities or though their patient clothing partners is 1,000 PeeJays per facility per year or 20,000,000 units annually. The SAM is estimated at 25% or 5,000,000 units annually with at 10% market penetration or 500,000 units at $10.00 per unit, yielding revenue of $5,000,000 and gross profit (25%) of $1,250,000 with minimal increase in operating expense. Unit sale price and gross profit are reduced based on the margin needs of the distribution channel.
Financial Summary (estimated)
End user sales (annually) $1,000,000
Medical facility sales $5,000,000
Total sales $6,000,000
Gross Profit $2,250,000
Licensing royalties $ 500,000
Operations expense ($ 250,000)
Net Profit before tax $2,500,000 annually with 10% annual growth estimated