DAYANG M4U AGENCY PROPOSAL
The purpose of this proposal is to show that we are interested in a mutually-beneficial, long term relationship with Dayang beyond 2018. We feel that the current relationship with Dayang as Trands USA employees has many challenges that are extremely difficult or impossible to overcome. It is our sincere hope that we can communicate together to arrive at a proposal that works for everyone and rejuvenates our interest and motivation to succeed.
We propose to form a new company, Dayang M4U Agency (DMA), using the USTYYLIT 2.0 Platform to offer M4U products in North & South America
DMA will initially have three primary sources of revenue:
Existing Trands USA Customers
Munro’s M4U orders made at Dayang
Other types of new accounts including House Accounts
As Dayang M4U adds new customers, they will fall into three categories:
M4U Private Label
Dayang House Account
DMA’s first two executives will be Todd Gay and Paul Rego. Their core responsibilities will be:
Todd - Sales / Training / Operations
Paul - Sales / Training / Marketing
DMA’s second level of executives will be Derrik Watts and Mark Cosco. Their core responsibilities will be:
Wrence - Technology Development / Scene 7 Vignettes and fabric photography
Mark - Munro Ambassador at Harry Rosen / M4U Private Label Accounts Manager for Canada
DMA would like to keep the discussion open for the possibility of having Kate Warmels on the DMA team at an administrative and service level
WORKING TOGETHER TO ACHIEVE STRONG GROWTH
Let’s stop working against each other, and start working together to make Dayang grow and everyone wins.
About Mark Cosco
Mark is a unique individual and a perfect addition to the DMA team. While he is in his 60s, he is actually technology savvy. He built his own website at http://markcosco.com immediately after he was recently laid off from Harry Rosen with a settlement package after 27 years of company service.
Harry Rosen is Canada’s Luxury Menswear giant. They have 17 stores and represent approximately 50% of Canada’s luxury menswear sales.
For 27 years Mark’s role was to train the entire sales staff across Canada to measure and fit garments, and send MTM orders to the company’s various MTM vendors.
Mark was working at Harry Rosen while Munro has been opening their shop-in-shop locations in all of their stores. Mark LOVES the Munro product. When Mark learned that Trands USA is a division of Dayang he became VERY INTERESTED to learn how he could help DMA.
Mark is willing to travel to all 17 Harry Rosen locations once per season to support a Munro Trunk Show in each location. If the Harry Rosen staff were to learn that Munro’s new Brand Ambassador is Mark Cosco, they would be VERY HAPPY to hear this.
While traveling across Canada for Munro events, Mark can stop at Shops on the days before or after the events to offer M4U Private Label to our typical type of Trands M4U Retailers.
Why would Dayang need a new company to do this?
Trands USA currently competes with Munro. There needs to be ONE new entity to offer BOTH products to Shops without conflict
Dayang’s current relationship with Munro provides conflict for Trands USA. DMA will be working WITH Munro to help grow their business without conflict, since ALL M4U orders come to Dayang. More orders from Munro or Trands is good for everyone. Nobody loses.
A newly formed company with a choice of two great products is much stronger than two separate companies trying to attract the same customers
Munro cannot possibly find stronger people in North America with more knowledge about their garment and GoCreate than Todd Gay, Paul Rego and Mark Cosco. IMPOSSIBLE
Todd and Paul have proven their loyalty to Dayang through many difficult situations. We feel it is time for us to be included in the bigger success picture with Dayang. This can only be achieved by forming a new entity
California Office would no longer be needed, and New York Showroom will likely also close down. A new entity makes all of this very easily explainable
Company Structure / Offices
Current NY Showroom cost is $25,000 + / month - California Office cost is $XX,XXX per month (including salaries)
Munro has shown that using shared office space to work effectively in any city is possible
DMA Staff will all use Regus Memberships to have a home base office near their residence, with access to modern meeting rooms and board rooms anywhere in the world. Estimated cost per person is $2,000/month including permanent home base office.
$2K / Month for 4 people (if Kate is included) is only $8K vs. current expenses
With USTYYLIT 2.0 taking care of invoicing, credit card charges and accounting, DMA does not need additional administrative staff
Trands USA customers will correspond directly with China for Customer Service Issues
With USTYYLIT 2.0, DMA will no longer accept faxed or email orders, and will no longer need Order Entry staff
The compensation structure for DMA Executives is very simple
There are no salaries for executives. All compensation is based on % of sales
The following is the proposed compensation breakdown:
1 % of Trands USA Sales
1 % of Munro USA Sales
1 % of Trands USA Sales
1 % of Munro USA Sales
1 % of Trands Canada Sales
1 % of Munro Canada Sales
Wrence & IT Team
4 % of Trands USA Sales
Sales & Marketing Expenses
3 % of Trands USA Sales
PER ABOVE, TOTAL COST OF SALES to DAYANG for DMA STAFF is:
10 % of TRANDS M4U SALES
3 % of MUNRO SALES
House Accounts / Large Accounts / Harry Rosen
UST2.0 offers a VERY EASY API for Western Hemisphere customers, eliminating the need for Dayang IT to communicate directly with customers. This will be important for attracting Large / House Accounts
UST2.0 can also communicate with Munro’s GoCreate software in the near future to submit M4U orders to Dayang Admin, while still utilizing GoCreate’s CAD pattern if desired . (to be discussed)
DMA can also negotiate with Munro for a Royalty % for current Trands USA customers who purchase Munro’s other LifeStyle products that are not made by Dayang
Since DMA Executives work for Dayang, not Trands USA, % compensation will apply to any and all House Accounts introduced to Dayang by a DMA Executive for as long as the House Account does business with Dayang and the Executive works for DMA
Other Benefits / Conclusion
DMA can collaborate with Munro to utilize their photography in our UST2.0 Platform (STYYLcart). This is for Shops that want the benefits of UST2.0 + STYYLcart, but want their garments made with the Munro CAD pattern and fabric selection
UST2.0 Platform combines World-Class Manufacturing with a World Class Ordering & Wardrobing system that automates invoicing and accounting. This business proposal CAN BE ACHIEVED if we use UST2.0 to run the business
WE MUST GET UST2.0 ACROSS THE FINISH LINE TO ACHIEVE THIS DMA PROPOSAL
Thank you very much for your consideration. We look forward to discussing this opportunity with you in more detail.