Load Hog's target market is the 50 million registered pickup truck owners in the U.S. Additionally, we will become the premier OEM supplier of light trailer lift kits. The market has no geographical boundaries, but we will target the upper-priced end of the marketplace.
Load Hog focuses its market offerings on the registered truck owners. Major customer segments of this 50 million person users market are individual truck owners, as well as construction, governmental, and agricultural truck owners. These customers segments, which show strong growth trends, spend substantial amounts on after market vehicle improvement and personalization.
The chart and table below outline the total market potential for Load Hog's products in the U.S.
Load Hog will focus on both individual and certain business truck owners who represent the lion's share of the market. These segments are more likely to have demanding requirements for easy-to-install dump capabilities, which are best suited for Load Hog's positioning as the market leader. At the same time, these customer segments are less price sensitive and are more likely to be installing high priced devices to increase vehicle utilization.
All customer segments, although diverse in nature, seek ways to increase vehicle utilization. For business users, full-on dump attributes will provide convenience and cost reduction. Individual users value vehicle personalization options inherent in the full-on dump capabilities as well as convenience.
The automotive after market has developed as a result of the American love affair with their cars and trucks, and the compelling need by a significant number of vehicle owners to personalize these vehicles. The total after market industry is a $260 billion market comprised of more than 90,000 manufacturers growing at a 12% rate year after year. The fact that the pickup truck is the fastest growing segment of the light vehicle market has made this segment a significant component as on average, approximately $1,700 is spent in the first year of ownership on a new pickup for after market product.
While there is no direct competition for either the Load Hog product or pneumatic technology, we have isolated three products that accomplish similar outcomes as "competitors."
The company claims this a la carte package to be boltable, save the reattachment of the bumper. At 270 pounds, this electric-over-oil, multiple-hinged, scissors assembly requires extensive plumbing and wiring. The unit retails at approximately $2,200. It is sold and installed by truck equipment specialty houses and requires approximately 20 hours to install; it has very nearly the dump angle and capacity of a Load Hog kit.
Weighing in at over 600 pounds, this electric-over-oil insert robs significant payload and still requires extensive electrical interface. An additional battery is also suggested, adding even more weight. Both the electrics and oil plumbing require frequent maintenance. The unit is notoriously noisy and unsightly. The unit has an advertised capacity of 4,000 pounds and a maximum tilt angle of 40 degrees. It is retailed through truck equipment houses for approximately $3,000, and is clearly not for the casual user.
Similar to the Venco unit, this device weighs in at 300 pounds. The electric-over-oil scissors device also requires extensive plumbing and electrical hookups. Capacity and dump angle approach Load Hog specifications but operation in cooler weather (under 30 degrees) is, at best, suspect. This unit retails between $1800 and$2000, is sold through truck equipment dealers and requires an experienced and skilled fabricator to install, in a minimum of eighteen hours.
Our market research efforts have shown that customers' major buying criteria include ease of installation, capacity and features, service, and price.