Equity
12 Days left

KarhiaPro - World's First Coat Stripper

Ask questions below and receive answers directly from the target company's team members.

Please post your question in English so that all of our investors are able to participate in the discussion.

anonymous 11 days ago

Hi Karhia team, I invested in this round and I hope you can close the round successfully. I am living in the U.S. and taking our dog to local Petco store (see https://about.petco.com/) for grooming on regular basis. I did show your video clip to the groomer asking her opinion. She got quite excited seeing the Karhia product in use and immediately understood the value proposition. She was asking about the price of the device and I showed her your online shop (https://www.karhia.com/en/shop/) pricing. She balked a bit on the 499 EUR ~ 550 USD price tag for the kit. Currently they don't do hand stripping at Petco stores but they have about 1500 stores in the U.S., Mexico and Puerto Rico and have grooming services that are quite popular over here. Getting your product into Petco like chains with hundreds/thousands of locations would open up a lot of business here in USA. You should absolutely also make this product also available in Amazon.com in the U.S. to get your volumes up.

Greetings from Lexington, Massachusetts.

Karhia Innovations
Karhia Innovations Oy
11 days ago

Hi, First of all, thank you for seeing the uniqueness of our innovation and jumping onboard our growth! We’re very excited, as it seems we’re going to have new shareholders not only from Finland, but from all around the world :slightly_smiling_face: Secondly, very nice to hear good feedback from the US. It’s very common that people start thinking about the price. This is natural, as many people compare our product to traditional clipping trimmers, a product category where you can find products with a much lower price. But when we turn the discussion on the cost per grooming, which is less than 2 euros with the existing pricing, the price doesn’t seem high anymore. Professional groomers can get return on this 2 EUR investment very quickly as the product makes their job a lot easier, and consumers can quickly calculate that the purchase is paid back in 1 to 2 years (when compared to taking the dog to a grooming salon). Amazon is one of the main reasons we’re organising this funding round. One of the first things after closing this funding round (hopefully successfully) is making the product available on Amazon and start acquiring retailers / sales agents from the U.S. Let’s keep our thumbs up to find enough investors who understand the uniqueness of our product, so that we can close this round successfully and start helping more groomers and dog owners around the world to keep their dogs feeling healthy and looking good all the time. Best Regards, Sami Ristaniemi, CEO Karhia, [email protected]

anonymous 9 days ago

A few thoughts on this thread from a professional point of view. As a breeder of a terrier breed that depends on regular hand stripping for grooming, I know very well how exhausting this work is and also how difficult it is to find a groomer offering this work. I use the Karhia since the presentation at the Interzoo fair in Nuremberg 2018 for my own dogs and customer dogs with growing conviction. Of course, the price may surprise at first, but this machine is unique on the market. The relief that the device brings and the low running costs per stripping process quickly put the purchase price into perspective. Angela Wahner

anonymous 13 days ago

In your webpage there is a list of trimmers that supposedly use karhia pro, but when i go on their websites it says they handstrip. Are you sure every trimmer on the list actually uses your machine to do the job? How can i be sure that they actually use the machine? Im very interrested in investing into your business, but i want to know if this product can become a standard in these type of dog grooming shops. I think price is a bit high for average person. So if it isnt good enough for professionals who are willing to pay more. I cant see the customer base if there isnt a significant price drop.

Karhia Innovations
Karhia Innovations Oy
11 days ago

Thank you for your message. We forwarded your questions to Karhia and got a response from their CEO: All the grooming salons listed on our website are users of KarhiaPro. The reason why many of them talk about hand stripping is probably that this is still the service that dog owners are searching for. We strongly believe that the product will become a standard in grooming salons, as it has clear benefits for the business - it saves time (increased grooming capacity), saves hands (better ergonomics - employee satisfaction) and improves grooming quality (end-customer satisfaction). In addition, there is clear evidence that the product, designed to meet the needs of professionals, attract private dog owners too. About one third of our users are private persons. This and more insights about the usage of the product (and our customer satisfaction) can be found in the customer survey summary attached in the investment material: https://invesdor-cdn.com/a/business-plan/1034/334917696ecc0d3ff7e3ae5a9b8ae928.pdf Price point: We started selling the product with an RRP of 699 euros (including Finnish VAT 24%), and with that price also many private persons bought the product. With the current pricing, the average cost per grooming session (taking into account the trimmer + consumable parts) is less than 2 euros. Considering that grooming the dog in a grooming salon in Europe costs approximately 70 euros, we think that the current price of 399 euros / 499 euros is very reasonable also for the broader customer base. In case of any further questions, I’m very glad to discuss them over email or phone. Sami Ristaniemi, CEO Karhia, [email protected]

anonymous 28 days ago

A few questions on the P&L / balance sheet:

Thers's 34kEUR of finished goods on 2018 end of year balance sheet and exactly the same number on the May books. Does this mean that the channel is full and no products have left the inventory in five months? Any idea how much inventory is there in the channel (how long does the current inventory sustain revenue run rate)?

The cash position seemed extremely challenging with a few thousand EUR in cash at end of May. Are you still able to make vendor payments and payroll with the sales cashflow or are you falling behind as of now, August? The numbers at a quick glance raise a concern that you guys could go belly up in the immediate months to come.

Best of luck and hopefully things are not as bad as they look on the surface.

Karhia Innovations
Karhia Innovations Oy
27 days ago

Hi,

Thank you for your question.

What comes to the inventory: The full inventory is not updated monthly in bookkeeping, because it’s quite a job and there has not been substantial changes in the inventory. It doesn’t mean that we haven’t sold anything from the inventory.

The inventory is about the same as 12/2018 because we are purchasing, manufacturing and assembling goods all the time, while selling devices and accessories. Our storage target is also still the same as last year, because even if the sales has increased, the production is responding faster than a year ago. At the moment, the storage of Karhia Pro devices is approx. the same 200pcs as in the end of 2018. We also have some expensive components (like motors) for approx. 700 devices in stock.

The cash balance mostly shows that we try to invest everything in growth, rather than have the cash resting on our bank account. We have done most of our investment in product development (Karhia Pro and related components, and for example pre-design for motorized Karhia Tube) and production ramp up. This has taken quite a lot of money, there is no argue about that. However, at the moment our expenses are substantially lower than during the last year or during spring. We are able to purchase the outsourced components with the money we are getting from sold devices, because we do not have mandatory product development or production projects going on.

As described in the investment material, our organisation and processes (including agreements with vendors) is very agile and lean, meaning that we’re able to maintain a low monthly burn rate if needed. As in many other startups looking to scale their business faster, more cash is always welcome to speed up the revenues, and this is the main reason why we’re arranging this investment round.

To give you a tangible example, our last week sales was 2,5x higher than our average weekly sales from June to mid-August. Our view is that this is mainly due to the increased marketing efforts we’ve done now when we started our funding round on 19th of August.

So to sum up the rather long answer; we still have inventory left to be monetised and we are able to manage all costs running the business.

Hope I managed to answer your questions thoroughly enough. Should you have any further questions, please do not hesitate to ask or contact me directly.

Best Regards

Sami Ristaniemi, CEO Karhia ([email protected])

anonymous about 1 month ago

I would like to have some informations about the financials (business plan, last figures, ...)

Karhia Innovations
Karhia Innovations Oy
about 1 month ago

Hello, Business plan and last figures are presented in the pitch material, which can all be seen when you log in to the Invesdor platform. In case these don't give you all the answers, please elaborate a bit more on what information you're looking for - I'm happy to help. BR Sami Ristaniemi, CEO Karhia