ShmoopTube

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Accounting Allah shmoop Those aren't pillows Okay so the big

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idea here was to take a simple product pillows and

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make them just a bit better so that everyone would

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want them like taking water and just putting it into

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a bottle and chilling it charging two bucks for it

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really an idea Well the cool thing about taking such

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a common product and in and sing it is that

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the market is well pretty much anyone in everyone on

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Earth who sleeps So yeah that's pretty much everyone The

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distribution ties are already established and in the case of

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pillows like Well when was the last time there was

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any riel technology innovation to him So distributors in sales

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people are likely really tired of telling the same story

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again and again and again It makes them yawn and

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then want to sleep anyway Morton in Milton's big idea

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is to load a very simple and inexpensive egg sized

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speaker into each pillow that is remotely addressable III works

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like a simple app wirelessly so that from your computer

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or iPhone you can program your pillow to play Something

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nice is you go to sleep if you're willing to

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shell out for dollars and ninety nine cents While you

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can hear an audio book reading of an incredibly tedious

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work of classical literature likely Shmoop upped that will you

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know bore you to sleep Now instead of simply falling

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asleep because your pillow is downy soft well you can

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fall asleep three times as fast To the sound of

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Tom Hiddleston narrating to the lighthouse This ad on would

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completely change the concept of a pillow of sleep itself

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of rest in the free world and they not free

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world and make for a product well they'd love to

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someday cell backto Apple for a big price Think the

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basic pillow twenty five bucks Add on acts that read

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play music or play a white noise ninety nine cents

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or more each Until now Henny has been selling pillows

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off his website to the tune of a million bucks

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in sales the first year Two million the second and

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four million a third For the first two years he

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re invested all his profits into marketing so he had

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no taxable income But by year three with four million

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dollars or revenues on two and a half million box

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of total expenses Well he has a million five and

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taxable income on which he pays about five hundred grand

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in taxes to have net income of about a million

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bucks Not bad for a chicken farmer selling pillows on

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the side but Kenny is smarter than the average old

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MacDonald He knows he can't take this company much further

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on his own So when Morton in Milton offer him

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ten million dollars to buy his entire operation more money

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than he ever dreamed he'd make Hay just sells and

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pillow talk is born well Eminem came from great training

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at Apple and they no growth at scale That is

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it's relatively easy to find a few thousand people who

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want the best in pillow technology But Eminem have a

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completely new take on things and they hope to win

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ten percent of the global pillow market If they accomplished

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that goal selling pillows for in about twenty five bucks

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each they'll have sold one hundred million pillows a year

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TTO win two point five billion dollars in sales at

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a pretty high profit margins So early on things go

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swimmingly They sell lots and lots of pillows and grow

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the early stages of the business and we'll get into

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the nitty integrity of the business in the next video 00:03:15.28 --> [endTime] For now we'll just sleep on it Oh

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