Introduction

Ceramic artist Brian Giniewski has been creating his signature "drippy pots" out of Philadelphia's Frankford neighborhood since May 2016. Since launching, the business has experienced year-over-year double-digit growth and is looking to improve its operational efficiency and cash flow by purchasing and refinancing studio equipment. Drippy Pots is looking to borrow up to $107,000 at 11.50% over 60 months. Anyone who is over 18 years old can invest.



About Drippy Pots

After 6 years of teaching art at the university level and making pots on evenings and weekends, Brian Giniewski decided to move back to Philadelphia and start his own business. To get the business launched in 2016, Brian ran a successful Kickstarter campaign and was able to begin production on his signature line of ceramicware.  While the business has scaled dramatically in years since, Brian's mission has always been to create accessibly-priced pieces of art that make people happy. 



Brian Giniewski LLC has experienced rapid and significant growth over the last 3 years, due to the success of the Drippy Pots product line. While popular and iconic, this product line has a slim profit margin due to the labor-intensive handmade production process and a strategically accessible retail price. The equipment to be purchased would dramatically improve the operational efficiency of producing our most iconic product.

Currently, 50% of our total sales come from direct-to-customer retail though our website. The other 50% is made up of wholesale orders from shops, boutiques, cafes, plant stores, and restaurants all around the world.

In addition to the "Drippy Pots" core business, I have identified several growth opportunities that will diversify our revenue streams and supplement the revenue of our core business. These opportunities take the form of custom contract manufacturing and private label production, ceramic material product development and distribution, consulting, group classes and workshops, and a significant increase of our drop-shipping retail capabilities. By 2024, I am projecting the combined revenue of these subsidiary operations to match the "Drippy Pots" annual revenue.



Fast Facts

  • Full-scale ceramics studio located in the Globe Dye Works building in Philadelphia
  • Profitable, growing business looking to expand in advance of holiday season spike
  • +40% year-over-year revenue growth
  • Products available through Amazon, Commonplace, and brianginiewski.com
  • 11.50% interest 


The Project

I have identified some crucial equipment that will help us to make our production process more efficient, allowing my team to focus on their most valuable skillsets, rather than repetitive manual labor. These pieces of equipment include:

- An electric slab roller, which makes consistent panels of clay; 

- A de-airing pugmill to efficiently recycle waste clay;

- A commercial dishwasher to automate washing ware after the initial kiln firing; 

- Two additional potters' wheels to accommodate my growing team - A large slipcasting table to allow us to work with more molds; 

- A slip mixer, used to recycle scrap clay in to useable liquid slip;

- A glaze mixing / glaze dipping station to assist in glazing dinnerware;

- An industrial packing tape dispenser to pack boxes faster; 

Additionally, I hope to purchase equipment that will help us to design + prototype new products for our own production lines, as well as private label designs and contract manufacturing for other Philadelphia brands.

This equipment includes:

- A large-scale 3D printer to produce client prototypes from digital files; 

- A CNC machine, used to fabricate molds and prototypes from digital files;

- A new desktop computer to operate the CNC machine and 3D printer;

- A new laptop to be used by the E-commerce and Fulfillment staff; 

Any additional investment raised will be used for working capital. We experience significant seasonal fluctuation in sales, and having a minimum of two months of operating capital in the business bank account will ensure that I am meeting payroll each week and allow us to increase our inventory levels during slower sales periods.


 


Projections

I am anticipating our total annual revenue to reach $1M by 2021. This will happen through cultivating several new revenue streams, in addition to the "Drippy Pots" line. The requested equipment will increase our capability to manufacture products for clients, and significantly lower our total Cost of Goods Sold by leveraging bulk discounts in the purchasing of raw materials.

The de-airing pugmill, electric slab roller, and slip mixer, for example, will help us to recycle waste clay material which is currently just being stored in the studio and not being utilized for production.

The digital equipment, such as the 3D printer and CNC machine will greatly expand our ability to produce prototypes to a high degree of precision and complexity. Incorporating this equipment in to our workflow will give us a major competitive advantage over other small-batch ceramic manufacturers.

 

For additional information about the Company's financials and anticipated business plan, please see the Form C throught the "Investor Info" tab.


About the Owner

Brian Giniewski in Globe Dye Works studio

I (Brian Giniewski) started the business in March of 2016 in Philadelphia. I had been teaching Ceramics in higher education for six years prior, while creating this line of ceramics on the evenings and weekends. By 2016, the demand for my pieces exceeded what I could make, so I decided to leave teaching altogether and pursue a career as a full-time potter. Since that time, the business has grown faster than I could have imagined. We now lease a 6,500 sq. ft. facility in the Globe Dye Works building in Philadelphia and employee a team of seven full-time assistants who help with everything as part of the production and fulfillment process.

 


Deal Summary

Issuer

  Brian Giniewski, LLC (d.b.a "Drippy Pots")

Security Type

  Secured Loan

Loan Purpose

  Purchase of ceramic studio equipment, refinance

  of high interest debt, and working capital 

Offering Amount    

  $30,000 - $107,000

Interest Rate

  11.50%

Payments

  Monthly, Disbursed to Investors Quarterly

Maturity

  60 months

Security Interest

  Equipment to be purchased

 


Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to Drippy Pots.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

Investment Amount One-Time Fee Potential Quarterly Returns* Potential Total Repayment*
$100 $2.85 $6.59 $131.95
$500 $14.25 $32.98 $659.77
$1,000 $28.50 $65.97 $1,319.55
$5,000 $37.25 $329.88 $6,597.78

*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest, they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a fully amortizing loan: principal and interest are paid down starting with the first payment. There are no prepayment penalties and Drippy Pots may pay down their loan early which may impact your earnings potential. Please note, returns are not guaranteed and investors could lose some or all of their investment.

Your ongoing responsibilities from investing are very limited. Each year over the life of the loan you will receive a 1099-INT, this is a simple tax document similar to what you receive for most savings accounts.

Drippy Pots pays as agreed, you will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the Administrative Agent to manage the collections process on investors' behalf.

 


How Honeycomb is Compensated

Honeycomb charges Drippy Pots. a $250 posting fee and a 6.0% - 7.0% loan origination fee on the total amount funded.

   
Total Amount Raised Origination Fee
$30,000 - $49,999 7.0%
$50K + 6.0%

 

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $37.25 per investor.

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