RDJ Catalog Incorporated

A Pennsylvania Corporation

 

BUSINESS PLAN 2007

 

Principals: Daniel W. & Olga I. Merrick

 

                                                                  858 Rt. 446                                                                                           125 West Main

                                                            Smethport, PA  16749                                                                             Smethport, PA  16749

   (814) 887-5895   Office

(814) 887-5224   Fax

(814) 598-1447   Cell

    Email: daniel@rdjcatalog.com

 

         Web Sites:

www.RDJCatalog.Com – www.InstructionsToMoney.Com  – www.InstructionsToMoney.Net

 

 

 

 

 

 

Outline:

 

Introduction

Executive Summary

Reverse Merger

Financial Restructuring

PROJECTED REVENUES

NET WORTH STATEMENT

Balance Sheet

Restructuring HR

Demographics

CORPORATE GOVERNANCE

Executive Profile

Business History & Company Profile

Products & Service

FLOW CHART

CUSTOMER FINANCE

Services: Real Estate Portfolio of 15 Properties

Summary of Demographics

Marketing Plan

Operational Plan

Direct Marketing

Financial Strategy

Finance Plan to IPO

Conclusion

Forward looking statement

 

 

 

 

 

 

Introduction:

 

RDJ Catalog was born out of the direct sales dream of Robert Merrick who past on that dream to his son. “Direct Retail is not just sales, its entertainment that inspires the purchase”, Daniel Merrick. Retail entertainment as a new approach to marketing in direct sales is not uncommon to the American shopping public. Our goal at RDJC is to transfer the energy, motivation, and excitement of the passion filled movie into a direct buying experience for our customer providing high quality products and services.

 

RDJ Catalog formed as a sole proprietorship in 1999.  In 2001 offering retail merchandise to its customers was a streamline operation in multi-marketing structure. RDJC incorporated with retail storefronts and a direct sales force in place.

 

By 2007 asset building has lead to over 20 real estate properties and a net worth of 7+MM. Branching out into other marketing areas was just natural for Dan Merrick, CFO and co-founder of the corporation. In 2006 Dan released his book ‘Instructions To Money’ and a radio program by the same name. Dan has interviewed such amazing business stars as Carleton Sheets, “No Down Payment”, and Robert Kiyosaki, “Rich Dad Poor Dad”, who co-authored “Why We Want You To Be Rich” with Donald Trump.

 

With Dan’s book sales growing, adding to the healthy bottom line of RDJC, now is the perfect time to expand the momentum of success into the national market.

 

Executive Summary:

 

Proper financial planning is the keystone of any excellent corporation. Using more than the narrow view single purpose corporation, RDJ has positioned itself into a key role for expanding operations in high return profit margins. By expanding operations into new geographic areas with a two fold retail model, RDJ opens both storefront and direct sales operations under one roof in each location. Each office can easily operate at a gross income level or 1 million plus revenue with proper training and management. The goal is to open 100 marketing centers over the next 10 years in a 3 phase strategic plan. The first phase is to open 10 offices in key locations in large metropolitan areas and spring from those locations into 9 additional branches to form divisional management teams. Profits from each operational division will be targeted at 20% to 30% for equity enhancement and investment operations at corporate level. The acquisition and retention of key real estate for operational locations and expanded commercial investments will be the primary purpose of corporate investment operations.  To facilitate the restructure and expansion, RDJC, Inc. will need to go public by purchasing a OTCBB Pink Sheet shell and transitioning the name to meet all SEC reporting and processing requirements.

 

To complete this recapitalization and restructure process will require both private, debit, and equity funding. The funding will be transferred into a new issue of equity stocks sold on the OTCBB. Thereby RDJC, Inc. can transfer existing debit into equity funding positioning the company into a cash return operation while expanding investments into operations and real estate.

 

The primary key offices will be expanded on the following time schedule: 2008, Northeastern division, Southeaster division, Eastern division; 2009, Midwestern division, South-central division, North-central division, Southwestern division; 2010, Central-western division, Northwestern division, Mountain division.

 

IT restructures, marketing, and human resources will be expanded and redesigned to increase productivity and revenue. All RE management will be contracted out to local market management companies with proven track records for 95% + occupancy rates.

Reverse Merger

A less costly way of going public is a reverse merger into an existing public shell company. Expenses range from $100,000 to $500,000. A private operating company is merged into the public shell company, which becomes the legal surviving entity. The name of the company is usually changed to the name of the former private company and controlling shares are transferred to the officers of the former private company. After the merger, additional stock offerings to the public can be used to raise more capital. RDJ Catalog, Inc. is planning a reverse merger with a pink sheet OTCBB shell to facilitate expansion and recapitalization using present equity value of the corporation assets.

Income

1999 Started 11/15      $4,000.00

2000 Annual Income $25,630.58

2001 Annual Income $33,764.00

2002 Gross Income   $46,614.17

2003 Gross Income   $291,885.27

2004 Gross Income   $363,000.00

2005 Gross Income   $292,000.00

2006 Gross Income   $208,000.00

2007 Gross Income   $263,000.00 (Projected)

2008 Gross Income   $9,700,000.00 (Projected)

 

 

Financial Restructuring:

 

Below is a breakdown of funding for this transition:

 

Debit:                                                    $520,000.00

RE Equity:                                         $1,131,000.00

Shareholder Equity:                         $7,500,000.00                 (Class A preferred shares)

Partial RE Sale Proceeds:                  $708,000.00                 (Sales pending, refinance, & income notes)

OTCBB shell purchase:                      $250,000.00

Other equity funding                        $4,000,000.00                 (Private Equity Funding)

Cash for equity to shareholders        $200,000.00

Total Closing assets                      $14,309,000.00                 Total Transaction Cash Funding required         $2,028,000.00

Retained assets Transfer to new OTCBB    $3,500,000.00

New property                                                  $1,000,000.00

Estimated Cash in                                          $3,030,000.00

New Debit (Transitional Funding)                 $2,028,000.00    (Paid off with equity funding)

New public offering                                      $24,000,000.00    (Common Stock)

Total D&E new corp. Traded OTCBB          $33,558,000.00

 

All income producing real estate and retail operations will be transferred under the new structure.

 

PROJECTED REVENUES:

 

Year

2008

2009

2010

2011

2012

2015

Retail Sales

3,500,000

10,000,000

25,000,000

40,000,000

90,600,000

120,500,000

RE Income

1,200,000

2,575,000

5,350,000

10,800,000

12,958,000

25,500,000

Stock Sales

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Gross Income

9,700,000

17,575,000

35,350,000

55,800,000

107,558,000

150,000,000

Projections based on 100 office expansion with internet and catalog revenues: Reference Business Resource Center(BRC)

University of Pittsburgh at Bradford • 300 Campus Drive • Bradford, PA 16701  (Retail COGS and Operational expense @ 20%-30% income).

 

RDJ CATALOG, INC. ( A Pennsylvania Corporation) 08/2007 

PA Dept. of State Entity#: 3065278    EIN: 20-0549680 DUNNS#: 03-994-0056

NET WORTH STATEMENT                                                  ASSETS

ITEM

Description

Cost

Market Value Present

COINS

US Collectable & Bullion

78,000.00

1,400,000.00

PRECIOUS GEMS

LARGE Caret Collectable

58,000.00

1,500,000.00

ART & HISTORICAL

Paintings & Family History

0

158,977.00

Furnishings

Furniture, Fixtures, Equipment, Tools

186,000.00

186,000.00

COMMON STOCKS

Etrade, Scottrade & SDB Holdings

5,680.00

32,786.00

US TREASURY NOTES

Zero Coupon Bonds ‘AAA

230.00

2,600.00

ASCAP Reg. Copyrights

161 Musical Works/intellectual prop.

0   (Based on Royalty Value)

161,000.00

Business Inventory

Retail items RDJ Catalog stock

10,472.00

30,800.00

Automobiles

2002 Excursion/2006 Toyota/86 Pont.

12,000.00

55,000.00

CASH ACCOUNTS

Money Market & Bank Ck/Sv

77,000.00

77,000.00

REAL ESTATE

Schedule Above

222,600.00

1,215,400.00

RDJ CATALOG

Business Value

44,064.00

361,884.80

ACCOUNTS RECIEVEABLE

Notes & Judgments

4000.00

50,000.00

TOTALS

 

 

5,244,448.00

 Note: Pledged assets above may consist of personal property of the corporate officers. IE: RE @ 858 Rt. 446 Smethport, PA  16749.

 

LIABILITIES

ITEM

HIGH CREDIT / RATING

PRESENT BALANCE

MONTHLY

TOTALS

 ~900K               IO1/RO1

520,594.00

8,831.00

Details on debts and expenses withheld for security purposes.

 

 

 

 

 

 

Balance Sheet

 

 

ASSETS             $5,244,448.00

LIABILITIES       $   520,594.00

 

NET WORTH     $4,723,854.00

 

Annual

 

INCOME               $300,000.00

EXPENSES          $109,572.00

The primary goal and objective of RDJC, Inc. is to build corporate net worth.

RDJC, Inc. CASH FLOW CYCLE: Income > Expenses > Profit > Investment > Net worth.

Restructuring HR:

 

Key officers will be retained in the transition and new management will be assimilated in corporate structure to enhance goal oriented sales revenue. Web presence will be updated to provide user friendly interactive transactions for revenue generation through sales and affiliate advertising income. Media and mass marketing plans centered on PR and attraction of targeted demographic groups will be implemented to insure favorable results.  Projected hiring will be 1000+ over the next 8 years.

 

 

Demographics:

 

21-55 Couples 18K – 75K annual 90% of past sales

55% with children

14% professionals’ 25-38 50K+ with college

21% two income households

21-40 Female (single mother) 15K – 38K annual 10% of past sales

 

Based on past sales, marketing in these distributions have yielded a 75% to 85% closing rate (2 out of 3). By training managers to recruit, hire, and train in the local markets of the expanded target areas, a ready sales growth is developed within areas. Associative marketing results from expanded marketing representatives who move into management in the next phase of expansion.

 

Word of mouth advertising and direct sales force illuminates a great deal of advertising costs while making market loyalty an integrated part of each hire and sale. Training each representative to develop in teams toward the goal of operating his or her own branch office provides the advantage of network marketing without the usual problematic integrity associated with network marketing companies.

 

Practice sales development with friends and family provide a qualified referral resource for future sales and immediate corporate income. In the first 30 to 45 days of operation in Bradford Pennsylvania, RDJ Catalog, Inc. gross sales toped $164,000.00 showing a test market in a less than average market can yield high returns with only a short operational startup.

 

The two fold marketing model allows for both traditional retail store operations and direct marketing techniques to be maximized into a million dollar production operation within the first 12 months of opening. 

 

Divisional Cities for phase one expansion: Pittsburgh; Orlando; Nashville; Chicago; New York; Dallas; St. Louis; Seattle; Sacramento; Denver.

 

 

 

CORPORATE GOVERNANCE:

Mrs. Olga and Capt. Daniel Merrick, Ph.D.; USAR-Ret.

 

 

Executive Profile:  RDJ Catalog, Inc. is a family owned corporation. RDJ’s Operational Manager and President is Daniel W. Merrick, Ph.D. The business has four additional employees and 7 officers at present.

 

Olga I. Merrick, COB

Olga is an immigrant from Ukraine where she studied ecological resource management in Kiev. She has worked with the Ukrainian Forest Service and Postal Service. This has given her insight into finance and international markets. Her experience offers new ideas and reliable methods of supply chain management.  Olga has managed budgets for the Ukrainian Postal Service for over five years with an annual gross in cash of 50M.  She was responsible for pension distribution networks in the Kiev Fastov region and also managed the Forest Service timber management program.  Since 1999 when she helped to establish RDJ Catalog, she has become the driving force to gains in both market share and acquisitions. 

 

Capt. Daniel W. Merrick, Ph.D. – President; CFO

Daniel is a graduate of The Hebrew Institute for Biblical Studies and holds a doctorate in Linguistics and Iconology. He also has a Masters in Vocational Education and a BS in Psychology and Ministry. He served in the US ARMY in the ARMOR branch as platoon leader, Battalion Intelligence Officer, Liaison Officer, and Company Commander. He has also worked with several fortune 500 companies such as AB Electrolux, Scott & Fetzer, HealthMor, and CT Engineering. Daniel has specialized in motivational psychology and sales marketing strategy. He has also appeared on national TV several times on such programs as “Go For Your Dreams’ on ABC network , “His Place “ and  “ Getting Together “ on CTV network. Daniel is a disabled veteran and is assisting his wife in developing this business.  Daniel is also the owner of Eternal light & Power Company (ASCAP), a music publishing and record company.  Daniel produced “Faith In Action” radio worldwide broadcast for evangelist Ken Gaub from 1996 through 1999. Daniel is a member of the National Society of Sons of the American Revolution, American Legion, The Fraternal Order of Eagles. Military Officers Association of America, Reserve Officers Association, and The DAV.  Daniel sits as head of his family line as President of Merrick Foundation .Org, a family history and genealogy non-profit organization. He has also co-authored a book on his family history published by Higgdonson Books and is the author of Instructions To Money, From Welfare to Millionaire published by Outskirts Press. Dan has been featured in ‘Real Profits’ news letter, national radio & press, and on his own syndicated Radio Show.

 

 

Business History & Company Profile

 

RDJ Catalog was born out of the marketing Ideas fostered by Robert W. Merrick and was established in 1999 as a direct marketing company. Initially the company offered Internet purchasing and limited direct sales activities. In January 2002 the company moved into advanced direct marketing to increase revenue after ending training contracts with S&F. RDJ Catalog has established relationships with major marketing companies and suppliers that have positioned the company for advanced future growth into the market. RDJ Catalog has Internet web domain holdings and intellectual property as well as inventory, investments, and real estate with a net worth of over 7 million dollars.  In 2003 RDJ started advanced investment strategies and acquired real estate holdings in the local market with over 14 lease holdings in the area along with income notes and land. Plan profit reinvestment strategies project future acquisitions and income over 107M by end of 2012

 

 

 

 

Products & Service

 

RDJ Catalog has an active marketing outline in our 7-department program that allows for enhanced sales potential and new market development. Our primary product is 5 Ply and 7 Ply T304 Stainless Steel Steam Control Cookware.  Secondary product line is the Model 2000 water filter system.  Our eighty plus page full color catalog has over 500 additional items for purchase.

 

(17 Piece set pictured above includes a lifetime warranty MSRP$1595.00)

The 7 Departments:

 

a.       Recruiting – This program is designed to hire and train independent 1099 commission sales representatives to market products to customers. The program is modeled after Daniel W. Merrick’s training strategy developed for other direct marketing companies as a consultant.

b.       Sales – The sales team is trained in direct field marketing presentation with the use of video and presentation book. Incentives are in place to help inspire achievement as well as a profitable commission schedule.

c.        Service – Warranty service is handled by the Dallas Distribution Center and through manufacturer guarantees. After initial sale each representative is responsible for customer service and follow-up.

d.       Catalog Follow-up Sales – Each representative is encouraged to contact customers after the sale to offer other products on special or sale items. Accounts are assigned to rep’s in the event termination or for departing rep’s.

e.       Lead Procurement – Telemarketing and direct field techniques are used to acquire potential customers.  Rep’s are also encouraged to get referrals while in the home to seek out new buyers.

f.         Accounting & Investment – Books and ledgers are trained for every prospective distributor to insure that taxes are current and paid on time. This is to insure accurate records are kept and reduce risk of tax liability. This department also includes finance.  Presently all paper sources are non-recourse and only a limited number of security agreements are financed in house. 

g.       Promotion – Each office is to continue to develop representatives and distributors to achieve greater goals through continuing education. Programs and materials that will inspire and motivate by authors as Zig Ziglar, Tom Hopkins, Dale Carnegie, and other book such as “Rich Dad Poor Dad” are to be in office libraries for regular training and morning meetings.

                                               Our Cookware features Steam Control Valves to better retain Vitamins and Minerals while       

                                                                                       steaming instead of boiling.

5 Ply construction T304 Stainless Steel acts like a heat battery, heat the pan on medium and reduce to low for greater  

                                                                         energy savings while cooking.

                                     This Leather Coat sells in local malls for $389.00 RDJ Catalog price is only $94.00

2005 CATALOG FEATURED MANDRELL SISTERS ON THE FRONTCOVER!

 

 

FLOW CHART OF PROJECTED SALES WITH EXPANSION:

 

CUSTOMER FINANCE:

 

By providing in house financing for customers the bottom line can be increased overall by 15 to 25%. RDJC, Inc. can establish ACH/EFT and direct debit financing at a rate of 10% APR and thereby increase revenue gross to a projected proforma gross of $150 to $192 million per fiscal year. Corporate finance offices will be established in Smethport and Bradford Pennsylvania. Variance contained is this document represents a conservative estimate of projections due to risk factors such as time to establish new branch offices and the ability to hire.

 

Services: Real Estate Portfolio of 15 Properties

RDJ Catalog, Inc., its officers, representatives, or broker for real property, makes no claims as to the completeness or the accuracy of the material contained herein.  The real property owned or assigned to RDJC, Inc. is subject to risk factors such as rental market fluctuation and the reader of this business plan is hereby advised that changes may have occurred in the physical or financial condition of the properties since the time of preparation of this report. The projections and proforma data, were determined from historical information provided by accounting and or real estate brokerage contracted agents and may not be current with actual figures. The terms of informational presentation are subject to amendment, change, withdrawal, or revocation without notice. Any offering memorandum for sale of these real properties are subject to the following terms and conditions; neither the company or owner, broker or any representative or agent of RDJ Catalog, Inc. makes any warranty, express or implied. Parties who have no material interest in this document are asked to delete and destroy all copies of this document.

 

Annual Income:                                                                                   $121,886.40

Taxes:                                                                                                     $6,700.00

Insurance:                                                                                              $2,700.00

Expenses/Utilities:                                                                                  $6,287.00

   NOI:                                                                                                     $106,199.40

Cap Rate:                                                                                                  7.97%

Market Price:                                                                                   $1,332,489.00

 

 

 

 

 

 

 

 

 

Address - Zip

Units

Monthly Income

30 High St.-16701

1

$600.00

47E. Main-16701*

3

$1950.00

44 Elm St.-16701*

2

$875.00

49 Rochester-16701

1

$552.00 M

46 Poplin- 16701

1

$465.00

11 Colegrove- 16701

1

$700.00

54 Jefferson- 16701

1

$553.40 M

96 Cornen- 16701

1

$443.00

161 E. Main 16701

1

$600.00

22 Railroad 16730

1

$600.00

23 Roberts 16701

1

$437.16 M

544 Route 446 16749

1

$131.64 M

125 West Main 16749

1C

$2000.00 Retail

Windfall Rd. 16731

0

.5 Acre Lot

Coleville Rd. 16749

0

1.3 Acre Lot

Coin Op Laundry

2*

$250.00

TOTALS:

17

$10,157.20

3 Properties on land contract first mortgages and one 2nd mortgage denoted by M

 

30 High St.-16701

 

47E. Main-16701*

 

44 Elm St.-16701*

 

161 E. Main 16701

 

22 Railroad 16730

 

23 Roberts 16701

 

544 Route 446 16749

 

Windfall Rd. 16731

Windfall Road, Eldred, PA

 

Coleville Rd. 16749

Coleville Rd., Keating Township, PA

 

49 Rochester-16701

46 Poplin- 16701

11 Colegrove- 16701

54 Jefferson- 16701

96 Cornen- 16701

125 West Main 16749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 * 4 machines in 2 buildings: RDJC, Inc. is an investment corporation with real estate holdings in the McKean County area of Pennsylvania. This 16 properties including 4 notes for land contract sale on 4 of the properties above. The notes are seasoned and have 100% IO-1 paid as agreed status. The properties are SFR and MFR rental units with coin operated laundry units in place in two of the properties. The majority of the tenants are long term with over 3 to 5 years in the properties. There are also 2 building lots in this offer. Several Units are contacted by HUD, Managed income tenants, and McKean County CYS. 1.3 Acre lot with septic system permits in place for 1 to 4 family building. Half acre lot great for camp or mobile home/RV would also be great for modular home single family. The information in this document is not guaranteed to be accurate: See disclaimer above. For further information contact: Dan Merrick, President/CFO (814) 887-5895 or Mobile (814) 598-1447 Home (814) 887-5895 Fax (814) 887-5224. RDJC, Inc. 125 West Main St. Smethport, PA  16749.

 

Mentoring & Media Public Relations

 

  Instructions To Money Radio   

         Featured Guests:

 

               Some of Dan’s

               Personal Mentors.

 

    Dan’s Book & Radio show attracts

   notice with mentors and customers.

Carleton Sheets ‘No Down Payment’ PEI RE Course with longest running RE infomercial on TV.

Robert & Kim Kiyosaki authors of ‘Rich Dad Poor Dad’ & ‘Rich Woman’. Robert co-authored ‘Why We Want You To Be Rich’ with Donald Trump.

Dan with President Bush 2007

Dan with Kirby President Frank Vandetti

 

 

 

 

 

 

 

Real Property

Community Characteristics: Bradford, PA

 

These distinctive characteristics represent factors which have a strong influence on this community. Factors are considered "distinctive" if this community falls into the top 25% for these characteristics nationally.

 

16701

Characteristics

  • Very Rapid Population Growth and / or High Residential Turnover

Closest Airport

BRADFORD REGIONAL(5 miles)

Closest 2 Year College

OLEAN BUSINESS INSTITUTE(19 miles)

Closest 4 Year College

UNIV OF PITTSBURGH AT BRADFORD(3 miles)

Closest Major Sports Team

Buffalo Bills (65 Miles) Pittsburgh Steelers (150 miles)

Population

 

16701

Pennsylvania

Population

13,194

12,469,371

Population Density (people/mile)

75

276

Population Growth (since 2000)

-7%

2%

Male

6,336

6,055,244

Female

6,858

6,414,127

Median Age

38.72

38.58

Household

 

16701

Pennsylvania

Number of Households

5,510

4,836,935

Average Household Size

2.31

2.48

Household: With Children

1,773

1,553,674

Household: With no Children

3,738

3,283,261

Household: Family

3,390

3,220,607

Household: Non-Family

2,120

1,616,328

Total Dwelling Units

6,335

5,450,054

Housing

 

16701

Pennsylvania

Median Home Price

50,000

27%

In Current Residence 5+ Years

45%

42%

Annual Residential Turnover

17%

17%

Median Years in Residence

4.34

3.99

Median Dwelling Age

60

43

 

 

Income

16701

Pennsylvania

Median Household Income

$33,475

$45,389

Average Household Income

$43,187

$58,718

Average Income Change (since 2000)

11%

13%

Per Capita Income

$18,872

$23,603

Sales Tax Rate

6%

6%

Sales Tax Type

CO

ST

Median Disposable Income

$29,668

$39,194

Net Worth

 

16701

Pennsylvania

Median Household Net Worth

$36,663

$42,528

Average Household Net Worth

$126,279

$140,489

Median Home Price

$50,000

$205,500

Cost of Living

 

16701

Pennsylvania

Average Total Household Expenditure

$39,705

$48,250

Household Expenditure Index (100=National Average)

78

95

Cost of Living Index
(100=National Average)

 

Community Characteristics: Smethport, PA

These distinctive characteristics represent factors which have a strong influence on this community. Factors are considered "distinctive" if this community falls into the top 25% for these characteristics nationally.

 

16749

Characteristics

  • Significant Percentage of Family Households
  • Moderate Seasonal Residency Pattern

Closest Airport

BRADFORD REGIONAL(10 miles)

Closest 2 Year College

OLEAN BUSINESS INSTITUTE(21 miles)

Closest 4 Year College

UNIV OF PITTSBURGH AT BRADFORD(14 miles)

Closest Major Sports Team

Pittsburgh Steelers/Pirates (150 miles)

Population

 

16749

Pennsylvania

Population

2,144

12,469,371

Population Density (people/mile)

16

276

Population Growth (since 2000)

-4%

2%

Male

1,072

6,055,244

Female

1,072

6,414,127

Median Age

41.48

38.58

Household

 

16749

Pennsylvania

Number of Households

811

4,836,935

Average Household Size

2.47

2.48

Household: With Children

279

1,553,674

Household: With no Children

530

3,283,261

Household: Family

589

3,220,607

Household: Non-Family

223

1,616,328

Total Dwelling Units

1,089

5,450,054

Housing

 

16749

Pennsylvania

Median Home Price

150,000

17.5%

In Current Residence 5+ Years

39%

42%

Annual Residential Turnover

19%

17%

Median Years in Residence

3.54

3.99

Median Dwelling Age

46

43

Income

 

16749

Pennsylvania

Median Household Income

$40,282

$45,389

Average Household Income

$51,136

$58,718

Average Income Change (since 2000)

11%

13%

Per Capita Income

$20,651

$23,603

Sales Tax Rate

6%

6%

Sales Tax Type

CO

ST

Median Disposable Income

$35,330

$39,194

Net Worth

 

16749

Pennsylvania

Median Household Net Worth

$41,554

$42,528

Average Household Net Worth

$134,823

$140,489

Median Home Price

$150,000

$205,500

Cost of Living

 

16749

Pennsylvania

Average Total Household Expenditure

$44,403

$48,250

Household Expenditure Index (100=National Average)

87

95

Cost of Living Index
(100=National Average)

 

RE Comparables:

Range: $1.6 million to $19,000

Sample Size: 381 in 20 mile radius

200K+: 68

199K-100K: 65

99K-50K: 150

49K-19K: 98

Overall average house price for 20 mile radius: $205,500.00

 

Most significant changes in area economy over last 5 years: Oil and Gas well drilling permits up by 181 new applications and Deep oil vain geological find 2007. Seneca Allegany Casino opened with completed construction in 2007 & Median household income up 15% from 1997 to 2007. Average high end housing price up from 200K to 500K over last 10 years.

 

Local Amenities:

 

5 Golf courses within a 25 mile area

Seneca Allegany Casino (Concert hall opening this fall)

Hamlin Lake (Large playground, picnic area, Skateboard Park, Tennis courts, fishing)

Allegany National Forest & Kinzu reservoir (Boating, Camping, ATV Trails, & Fishing)

3 Ski Resorts within a 50 mile radius (Denton Hill, Peak & Peak, Holiday Valley)

Chautauqua Lake

Chautauqua Institute

ZIPPO/Case Visitors center

Arms & Armor Museum

Eldred WWII History Museum

Malls & Shopping centers in Bradford, Salamanca, and Olean within 25 mile radius.

 

Hamlin Lake Smethport

 Kinzua Reservoir

 

Employment by Industry Local

 

 

Top 10 Employers

1 - ZIPPO MANUFACTURING COMPANY

2 - BRADFORD HOSPITAL

3 - FEDERAL GOVERNMENT

4 - BRADFORD AREA SCHOOL DISTRICT

5 - MCKEAN COUNTY

6 - W R CASE & SONS CUTLERY COMPANY

7 - WAL-MART ASSOCIATES INC

8 - SAINT-GOBAIN CONTAINERS INC

9 - ETHAN ALLEN INC

10 - UNIVERSITY OF PITTSBURGH

 

 

 

 

McKean County

 

 

 

 

 

 

Known as the "Governor’s County," McKean County was named for Thomas McKean (l735-l812), an original signer of the Declaration of Independence and Governor from l799 to l808. McKean County became an independent county from Lycoming County in l826. McKean County is situated 1,400 feet above sea level, covering an area of 992 square miles in the Appalachian Mountain Plateau known as the Alleghenies. The county seat is located in the Borough of Smethport. The l990 population was 47,131. The l970 population was 5l,915. McKean County is located 65 miles from Erie, l40 miles from Pittsburgh and 280 miles from Philadelphia. The highest point on Route 6 east of the Mississippi is located in McKean County at Prospect Hill and Reilly Hollow Road in Keating Township at an elevation of 2,440 feet. The major population centers in McKean County are the city of Bradford and boroughs of Kane, Smethport, Port Allegheny, Eldred and Mt. Jewett. Road transportation includes the major Routes 6, 2l9, 59, 321, and 46. Economically, the county depends on wood products, oil and natural gas, and glass industries and the commercial sectors. The area has taken a turn for the better with the recent addition of new industries like Allegheny Particleboard and Bradford Forest Products and the expansion of Zippo Manufacturing and their new Zippo/Case world-class Museum. An interesting area of attraction is the Kinzua Bridge. This magnificent viaduct, built in l882, was at the time of its construction the highest railroad in the world. It is believed that still today it remains the second highest railroad viaduct in the United States and fourth highest in the world. On August 16, l963, Governor William W. Scranton signed a bill authorizing the establishment of Kinzua Bridge State Park, preserving this national landmark. In 2003 a Tornado took the bridge down but the park still has many visitors annually. Other points of interest include the Allegheny National Forest, historic Crook Country Farm, Penn Brad Oil Museum, McKean County Historical Society Museum, Bradford Landmark Society Museum, Thomas L. Kane Memorial Chapel and Kane Manor Inn. The New Seneca Allegany Casino in nearby Salamanca, just a 10 minute drive away from Bradford, has caused an increase in the local rental market due to limited housing in the Reservation area.  The added tax benefit has caused many of the 600 plus Casino employees to come to Bradford for the added tax benefits.

 

                                                                                 

                                                                                   McKean County Courthouse

 

Smethport is the county seat of McKean County and the home of RDJ Catalog, Inc. corporate offices with a retail location at 125 West Main Street and offices at 858 Route 446 in Farmers Valley. Smethport is famous as the home of the inventors of the Bowling Ally automatic pin loader and the Wooly Willy toy. Smethport is also the home town of Ronny German, written of in many Fly Fishing books as the creator of the ‘Pink Ugly’ fly. His fly tieing shop is a frequent stop for sport trout fisherman from around the world. Smethport is noted for its fishing streams and hunting attracting outdoorsman tourists throughout the seasons year round. In 1804 the first settlers came to this area of Pennsylvania establishing Tioga, Potter, and McKean Counties. Among the first settlers was Israel Merrick who came from Delaware and Maryland where his family first came from Wales in 1636. Israel’s son became the first McKean County Clerks assistant and was the first public school teacher in the old school house in Smethport.  The Smethport American Legion is Known as the famous Civil War ‘Buck tails’ for the regiment recruited by Maj. George Merrick who first served in the PA 61st  and later helped to form the 187th Pennsylvania Volunteers where he served first as a Company Commander and later as Regimental Executive Officer. Pennsylvania State Senator Walter Merrick was the cofounder of one of the first Law firms in the area, Merrick & Young. From this family line comes RDJ Catalog, Inc. President Capt. Daniel W. Merrick, Ph.D.

 

 

Marketing Plan

 

Competition:

 

The closest competition in this market is Mitchells World Products located at 612 East 14th street in Erie.

They have only been in business for 2 years and have only 3 employees. D&B has no stats on income

market share or suppliers for analysis. Other competition is Cutco which has only one rep in this area located in DuBois. The next closest is Kitchen Craft Cookware Co. in Reading with $210K per annum.

 

Real Estate Rental market competition is predominate ‘old school’ property managers who do little to improve the marketability of their rental units to improve income. RDJ has made enhancements to properties along with a regular maintenance program to insure that tenant properties are attractive to potential leasers. The recent expansions and rehabs developed by RDJC, Inc. have had a 98% occupancy rate and increase in overall rental rates in the area.

 

Most Businesses fail in the first five years:

RDJ Catalog has been in business for 10 years and has always declared a profit. Our price points, quality, and Customer service has given us an edge over our competition. RDJC has bucked the trend with gross receipts since 2004 over 250K annually.

 

92% of the direct retail market companies are declining which includes all direct sales and is not RDJ Catalog product specific. Cutco has a primary push in cutlery and only derives 15% of its national sales from cookware. Cutco is supplied by the same companies as RDJ Catalog and has no plans to develop US based stainless steel cookware manufacture facilities.  All products of this kind are imports and the only companies that could supply raw T304 for production is USS Corp in Mount Holly Springs Pa or Bethlehem Steel in Johnstown. Cutco uses primarily college students for increased market sales in summer months and has no financing offerings to customers. 

 

In the last 10 years RDJ has gone from annual sales in 1999 of 4K to projected annual sales of 500K+ in 2008.

 

 

Marketing Mix (distribution strategy)

 

RDJ Catalog is a unique marketing company in that the trends in the analysis are not accurate concerning the reference to products that are outside the scope of RDJ Catalog offerings. Being a direct marketing company born more out of the concepts of Scott & Fetzer Inc. which has $1.8 Billion in annual sales world wide. Like S&F, RDJ Catalog representatives go out and meet customers in their homes. Other retail establishments on the decline with high-risk strategy sit behind the cash register awaiting customers.

 

RDJ Catalog is actively seeking distributors and sales representatives that are willing to market direct to the public by word of mouth and personal contact.

 

Our goals are to distribute products from Bradford Pennsylvania into markets within a 1200 mile radius. Presently we have reach into a 200 mile radius with 3 full time and 2 part time sales representatives.

 

Distributorship – RDJ Catalog has a working marketing program based on distributorship to increase sales.  The program allows a sales representative to become a distributor of products in their own office by achieving certain goals. Targeted markets have been identified in Erie, Pittsburgh, Buffalo, Philadelphia, DC Area, and Cleveland.

 

Operational Plan

 

RDJ Catalog plans expansion into retail expansion operations by summer 2007. Operational structure is designed

into three areas being, Direct Marketing, Storefront Operations, and Investment Management. Direct marketing is

designed to train and develop a sales person to become a distributor of RDJ products in direct sales in an expansion

geographic area. After achieving certain goals, direct sales reps are given promotional opportunities into management. Storefront operations allow for walk in sales and provides space for training sale staff.  Investment management is subordinate to retail operations and is kept separate from retail operations. Investments are primarily in real estate with the long-term goal of renting locations to distributors in startup expansion  operations. Some of the present real estate holdings are in residential income properties as well as commercial properties. These properties are managed on site and off site with 10% of the labor for repairs being preformed by contracted service providers. The company has been a family operation up to this point in its development with the addition of legal, accounting, brokerage, and tax services being also contracted out. Customer financing is non-recourse through Citizens Finance Company and Finance America Corporation. By offering in house finance plans to customers supplied by capital from a reverse merger IPO, RDJ can increase market share on a national scale and illuminate debt through stock offerings.

 

   Manufacturing – All manufacturing is done with outside sources. Suppliers are:

   Dallas Distribution Center, San Antonio, TX  and through TradeEasy.Com with over

   50,000 sources for wholesale purchase of products. RDJC has also established relations with Master Cutlery & B&F.

 

   Insurance (Risk Mgmt)- All liability, employee and sales rep disability/workmen’s compensation

   Is provided by USAA Insurance of San Antonio Texas; Burns & Burns of Smethport Pa provides liability  

   and real estate insurance.  Employee benefits and workman’s comp is offered through the Bradford

   Chamber of Commerce of which RDJ is a member business. RDJC, Inc. has a Travelers Insurance business liability

   and workman’s compensation policy as well as contractors insurance.

 

Direct Marketing

 

   RDJC, Inc. has proven in the last 10 years of operation that direct marketing is the best method to generate revenue from sales. RDJ holds ownership to over 60 web domains and with an expanded direct sales force can move proven marketing concepts into a national market. RDJC, Inc. has recently filed with US government CCR registration for marketing to government contracted purchasing agents.

 

Financial Strategy

 

RDJC, Inc. presently owns RE assets of $1,000,000.00+ and a debt of $559,000.00 restructuring this debt to facilitate expansion by selling equity ownership in the company will allow an average monthly increase in cash flow of $9,000.00 to $12,000.00. This increased cash flow can be redirected into retail, marketing, and investment expansion. RDJC, Inc. can add to its profit margin by acquisition of new markets and expanded real estate holdings. This financial positioning for a Reverse Merger will generate total debt reduction with an IPO offering on the OTC market.

 

By expanding into additional markets, profits will increase with increased population areas. Direct 504 investors and note sales to reorganize debt will allow RDJ Catalog Incorporated to implement the following financial strategy:

 

Þ      Restructure debt to reduce interest and shift toward equity sales to eliminate debt.

Þ      Expand Retail operations into Erie, Pittsburgh, Cleveland, Buffalo, and New York.

Þ      Drive up revenues with direct sales in new markets.

Þ      Increase Real Estate Acquisitions in new market areas.

Þ      Purchase NASDAQ shell & change name to make RDJC, Inc. public.

Þ      Continue expansion nation wide with marketing and advertising to drive up internet sales and radio affiliates.

 

RDJC, Inc. is actively seeking equity investors and private loan funding. See additional attached financials for more information. Principals may contact Daniel Merrick at 814.887.5081 to discuss 504 investments and note purchases.

 

Finance Plan to IPO:

Proposal Blanket Mortgage Funding Bond & RE Backed Loan:

 

CUSIP: 912803CZ4

Type: STRIP

QTY 2000

U S Treas Bd Stripped Prin Pmt Zero Coupon

Maturity 02-15-2037

Issue Date 10-15-2007

Yield  4.716 

Price 25.489

Yield to Mat:  4.746 

Principal:  $505,520.00

Loan $2,000,000.00

Bonds At Maturity: $2,000,000.00

360 Interest Only Payments of $5,180.88

Total Interest $1,865,116.80

Backed by Real Estate Valued at $1,300,000.00

5% Interest

Loan Total Of Payments With Bonds at Maturity: $3,865,116.80

Use of Proceeds:

RE Exsisting Loans: $540,000.00

Bonds & Fees        $505,520.00

Registry Transfer   $  2,000.00

Corporate RM        $200,000.00

Reserve Holdings    $752,480.00

Total UOP         $2,000,000.00

 

Monthly

Present Rents and Income $7,049.64** (Not including personal income of $4,979.00)

** Reduced 30% for conservative estimate IE: Vacancy rate and market offsets.

Net Before TI after PMT  $2,268.76

Taxes & Insurance        $1,128.76

Total To Reserve Holdings monthly $1,140.00

 

Projected monthly deposit of $1,140.00 for 30 years with an interest rate of 5.65%

compounded monthly with an initial starting balance of $ 752,480.00: 

 Year Balance 

  1    810153.42    

  5   1076285.90   

10  1505510.92   

15  2074475.58   

20  2828673.90   

25  3828411.03   

29  4857893.98

30  5153625.27  Final Savings Balance:$ 5,153,625.27 

 

This is a conservation estimate of proposed financing with an IPO to facilitate a national marketing strategy. Exact figures can be obtained by referring to offering memorandum. In 30 years the corporation can establish earnings in addition to the savings balance above and create greater asset acquisitions in modified development plans in the future.

 

Conclusion:

 

RDJ Catalog, Inc. is actively expanding new distribution venues to increase revenue base. RDJ Catalog has grown in nine years which reflects the expert abilities of its management team. RDJ Management will continue to invest in RE holdings that have proven to reap a consistent income and growth. The corporation is well positioned to go public by executing a reverse merger and expand operation over the next 5 years into 100 stores nation wide. Interested principals my contact the corporate offices for investment or legal information.

 

RDJC, Inc. is actively seeking finance sources for expansion, development, acquisitions, and restructuring, Principals and prospective equity partners may contact RDJC, inc. Registered Agent at:

Capt. Daniel W. Merrick, Ph. D.

858 Route 446 Smethport, PA  16749

RDJCATALOG.COM

President/Author: InstructionsToMoney.Net

Email: Daniel@RDJCatalog.Com

Voice     (814) 887-5895 (814) 887-5895

Fax (814) 887-5224 Cell (814) 598-1447

 

 

 

 

 

Forward looking statements:

 

This is not a prospectus or offer to sell stock under the SEC rules; Statements contained in this business plan and on the corporate web site which are not historical facts may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this document or press release(s) that are not historical facts. When used in this document or in press release(s), the words "expect," "predict," "project," "anticipate," "believe," "estimate," "intend," "plan," "seek" and similar expressions are generally intended to identify forward looking statements. Because these forward looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. RDJ Catalog Inc. undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this presentation. See other disclaimers above and legal information at RDJCatalog.Com

 

 

 

 

RDJ Catalog, Inc.

© 2007