What happened at the EGM., page-40

From alhotcop9

Regarding expansion into other bedding tiers, our sales so far are into top tier branded mattresses. Each tier you move down is roughly a doubling in mattress sales volume. So supplying into lower tiers is a big opportunity. Dirk advised to read ISPA literature where you can get lots of detailed information about the mattress industry (such as the segments, who sells what where and to whom, etc) which might shed light on where our products are being used. Some things are limiting the move to lower tiers, but it’s not necessarily price. Price is a factor in that you can put $50 of PCM on a $5000 top tier mattress but not on a $500 bottom tier mattress. However, if you look at the “big 5” (Sealy, Serta, Tempur, Simmons and Select Comfort) they have offerings on all 4 tiers. They are less motivated to move PCM down tiers as they want to differentiate top tiers. So Alexium are using regional partners and finding the point in the cycle where saturation in the top tier encourages an entrant to the next lower tier and everyone starts to follow suit. If you can make a less expensive product, that becomes easier to do. Bob and the team created Alexicool AC (in very quick time) which adds a new critical component to out PCM formula that heightens the cooling effect and makes it last longer – and makes it cheaper. We launched this and have recently won contracts for new bedding lines in the middle tiers – it is already starting to happen.

" RECENTLY WON CONTRACTS" it is already starting to happen. Yipeeeeeeeeeeeeeee.

Have a great day all.