Liquor Information Pricing Services (LIPS) is looking for an investor to help expand its unique price monitoring and insights service into new categories and markets.

The Pitch:

Established in late 2003, LIPS monitor alcohol prices and promotion activity advertised in print and electronic media throughout New Zealand. Data is uploaded to its trade website www.lipsltd.co.nz where subscribing clients access, filter and download reports, 24 hours a day, 7 days a week.

Clients use LIPS’ reports to identify key advertising and pricing trends by product, brand, supplier, retailer, sales channel and region. The insights gained greatly assist subscribers with the development of more effective promotion and pricing strategies to improve sales performance. LIPS also perform ad-hoc data analysis and prepare customized reviews for some trade clients.

LIPS enhanced its website further in 2009 with the addition of intuitive ‘chart-building’ software. The software allows subscribers to create their own charts and reviews to identify key insights instantly. Charts can be saved and exported to excel and power point. They also update automatically with the latest data each time a user logs in.

LIPS also operate www.lips.co.nz for consumers to search and compare liquor prices free across 100’s of retailers nationwide. The concept is to broaden availability of LIPS’ data by allowing members to find the best advertised deals on their favourite brands. Search results are ranked from lowest to highest price. The commercial value lies in generating referrals for liquor merchants which can be charged for. Each search is also logged enabling LIPS to supply statistics to retailers and suppliers on search trends and demographic profiles. Advertising space is also sold to merchants online.

The company is debt free and has traded profitably over the past few years whilst only monitoring the alcohol category. The business is also unique. There is no other company in New Zealand monitoring advertised liquor prices and selling insights to clients. LIPS has an excellent reputation as “New Zealand’s leading advertising scrutinizer”* and provider of pricing intelligence for the liquor industry. Several opportunities exist to expand LIPS’ services and income from other categories and markets.

*DrinksBiz – Feb/Mar 2010

Accomplishments to date:

• Proven success in liquor industry – 7 years
• Profitable, debt free company
• Development and innovation of services provided – reports, chart-builder, www.lips.co.nz
• Reputation as leading market intelligence company
• Consumer database of 6,500 members

Development plans:

LIPS are seeking professional assistance and investment with the following:

• Expand monitoring and insights service into categories beyond liquor
• Broaden monitoring service in markets outside New Zealand
• Develop web scraping software and automated data feeds from media/merchants
• Enhance chart-builder software to integrate with sales data
• Implement marketing strategy to grow membership and web traffic of www.lips.co.nz

Key Challenges:

• Little potential for growth in New Zealand Liquor Industry (small market)
• Modifying database to accommodate new categories and direct data feeds
• Personal circumstances preventing further capital injection from directors
• Making business scalable by reducing overhead related to data entry

Principals & previous experience:

Sean Jowers is the Managing Director of Liquor Information Pricing Services (LIPS). He has a Bachelor of Business from AUT and over 15 years experience in key account sales, marketing and business management in the liquor and advertising industries.

Paulette Bishop is a Director of LIPS and has held category management and analyst positions within the FMCG and Liquor Industries over a period of 12 years.  Paulette currently works as a Finance Analyst and all of Paulette’s spare time is spent developing LIPS’ business strategies.

What they want from an investor:

The directors seek an investor with skills and experience in information technology, Microsoft programming and business development to help achieve the growth objectives. An insights background and analytical mind is also preferred.

An investment of $100,000 is sought. The directors are open to discuss all options and possibilities for investment, purchase of equity and a role within LIPS.

Who the offer is open to:

Suitably experienced angel investors who are eligible persons as defined in the Securities Act or who would otherwise be exempt from the requirements of Part II of that Act.

Contact details:

Sean Jowers
Phone: 021-547-583
Email: seanjowers@lips.co.nz
www.lipsltd.co.nz
www.lips.co.nz

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