LICENSING PROPOSAL

NOVEMBER 2016
 EFFECTS PEDALS
Best Effects is an online emporium of obscure, vintage, and
exclusively-branded “stompboxes” for guitarists obsessed with creating
unique sounds.

A guitar pedal is an electronic effects unit for electric guitars that colors
the instrument’s sound (think: distortion, reverb, wah-wah).

Pedals are a mainstay of co-founder guitarist, composer and major label

veteran Shannon Ferguson, who Guitar World compliments with “building
cathedrals of sound using only a handful of delay and distortion boxes.”
THE MARKET
US ELECTRIC GUITAR MARKET

Annual Revenue: $508.2m.

IS GROWING Accessories, including pedals, are expected to

account for 24.5% of revenue in 2016.
– IBISWorld Industry Report, Acoustic & Electric Guitar,
Manufacturing in the US, May 2016

In 2013, there were 1,000,000 effects pedals

sold in the US. In 2014, it was 1,200,000. An
increase of 20%.

– National Association of Music Merchants

Retail prices of guitar effect pedals are rising

every year with a 13.5% increase in 2014
alone.
– Music Trades International Almanac, 2015
 A RECENT SURVEY OF PEDALS
ARE
GUITAR PLAYERS
FOUND...

POPULAR
· 98% of customers are male

· Age range 21-49

· 52.9% own 10 or more pedals

· 26.9% own 6-9 pedals

· 20.11% own 5 or less pedals

· 50% want to own more than 11 pedals

 BOUTIQUE PEDALS
Coinciding with the swell in electric guitar accessories is a growing boutique market for rare and
specialty pedals. Leading the best-of-breed is EarthQuaker Devices, which produces a
graphically-distinct line of various effects pedals.

Others in this space include Electro-Harmonix, Catalin Bread, and Death by Audio. Likewise,
publications such as Tone Report (tonereport.com) and The ToneQuest Report (tonequest.com)
have emerged to cover this niche and rally the community.
STAR WARS +
ROCK ‘N’ ROLL
None of these pedal-pushers are using licensed IP
near the caliber of the Star Wars universe.

With its strong affinity with Gen X and

Millennial-aged musicians/collectors, and its
iconic, award-winning sound design, we believe a
Star Wars-themed collectable pedal could dominate
a part of the emerging boutique market.

We want to create an enduring sales pipeline that

reaches the rich niche where Star Wars fans and
aspiring rock stars meet.
BEHOLD, THE
POWER OF THE
OCTAVADER
A modified version of the classic “octave
fuzz” pedal effect, this distortion pedal
adds a lower octave note to whatever is
being played – in real-time.

CLICK TO PLAY AN AUDIO SAMPLE

MAY THE FUZZ BE
WITH YOU
We propose producing a limited, collectible run of
1,000 Octavader pedals, using the highest quality
components and assembled in the US by our
manufacturing partner All-Pedal in Paducah,
Kentucky.

Each pedal will be numbered and available

through our website (besteffects.co) at a premium
retail price of $249.
LAUNCH 2017
Presuming a January 2017 start-date, we
can have pedals on the market by June of
2017 – ahead of the winter release of Star
Wars VIII and holiday shopping season.
Our sales mechanism is modeled on that of
NYC-based online retailer Best Made, which
specializes in short-run, branded lifestyle
products. Driving traffic to their site solely
through social channels, Best Made
generates demand by deliberately trickling
the products to their ardent fans.
Optionally, Best Effects could partner
with Reverb (reverb.com), an online
musical gear seller’s platform for a
co-promoted launch.
Once the market is primed, the limited
edition Octavader could be followed by a
smaller Vader-themed pedal (Octavader
X1) with fewer means of manipulating
the effect, for a subsequent season.
The aforementioned Electro-Harmonix
uses a similar strategy with its “Memory
Man” pedal and its variants “Memory
Boy” and “Memory Toy.” Predictably,
each iteration boasts less features as
well as a lower price point.
 WHOLESALE*
JUNE 2017 LAUNCH: OCTAVADER

Month Units Revenue

Jun 2000 $483,000
2017 Jul 1250 $301,880
PROJECTED Aug 1250 $301,880
SALES Sep 1000 $241,500
Oct 1000 $241,500
Nov 1500 $362,250
Dec 2000 $483,000
*Retail: $249.00
Wholesale: $241.50 (retail, less 2.9% credit card fee +
$0.30 transaction fee per sale) Total $2,415,000
 Suggested New Line:
C3P0 DELUXE DELAY A classic delay pedal that takes
inspiration from C3PO’s iconic
1,000 Units @ $241.50 Wholesale* .7 second vocal delay.

Month Units Revenue

Jan 1000 $241,500
Feb 750 $181,130
Mar 750 $181,130
2018 Apr 750 $181,130
PROJECTED May 750 $181,130
SALES Jun 750 $181,130
Jul 500 $120,750
Aug 500 $120,750
Sep 750 $181,130
Oct 750 $181,130
*Retail: $249.00
Wholesale: $241.50 (retail, less Nov 1250 $301,880
2.9% credit card fee + $0.30 Dec 1500 $362,250
transaction fee per sale) Total $2,415,000
 Suggested New Line:
OCTAVADER X1 A more compact, simplified
2,000 Units @ $121 Wholesale* version of the original Octavader.

Month Units Revenue

Jan 2000 $242,000
Feb 1500 $181,500
2018 Mar 1500 $181,500
PROJECTED Apr 1500 $181,500
SALES, PART
May 1500 $181,500
Jun 1500 $181,500
2 Jul 1000 $121,000
Aug 1000 $121,000
Sep 1500 $181,500
Oct 1500 $181,500 Total $2,420,000
*Retail: $125
Wholesale: $121 (retail, less Nov 2500 $302,500
2.9% credit card fee + $0.30 Dec 3000 $363,000
transaction fee per sale) 2018 Total
$4,835,000
SHANNON FERGUSON
FOUNDER
Shannon Ferguson creates original music
for a global roster of projects and clients.
Recent productions include music and
audio content for national advertising
campaigns, feature films, podcasts, web
serials and episodic television. Clients
include Google, Pillsbury and
Nickelodeon. His band, Longwave (RCA)
records a new album this Fall.

Fergusound.com
shannon@besteffects.co