Well, Competition is standard why would you be worried about it?

Many companies do well in the face of competition. Look at the Mac Vs. pc. Mac is growing all the time. Competition did not stop fast food franchising... look at how many burger joints we have! Look at how many brands of Television we have. It all stems from competition. The key is to develop yourself a market share. This can be done by isolating a segment of the market which has not yet realized its full potential.

Sonomax will compete on several fronts.

1. Custom fit by audiologist

2. Custom fit inserts like sold by Monster

3. Sound isolation and cancelling technology like in Bose

4. All other head sets on the market!!

Right now Sonomax is able to beat Custom fit by Audiologists by price and time. A 3-5 minute fit from a device is not going to match the quality of a custom fit by an audiologist; however, people who want custom fit and who do not want to wait 2-4 weeks for the product and who do not want to pay a few grand for the product can turn to the Sonomax solution!

The custom fit packages by Monster are not really custom made. You are just trying to find the best size and shape to match your ear size and shape. I have tried these types and they do not work well at all for me. My ears still hurt from using them. IMHO, Sonomax still beats these sets.

Sound isolating and cancelling headsets are a stiffer crowd to beat, especially with players like Bose. However, keep in mind that most sound isolating and cancelling devices are large and bulky ear muff styles. Personally, I would never buy a set of those. There are some more compact sets for sound cancelling but again, they are not true custom fit so the acoustic seal is not 100%. In this group I would not consider Sonomax a winner but that’s because I have not tried all the different solutions out there.

As for all other head sets… Sonomax is not trying to beat them. Sonomax is trying to identify a market share which wants a custom fit solution. Not everyone will want it or even care about it. So, the broad market is not really competition for Sonomax.

Competition that will embrace Sonomax

Ignoring all else you can say that sonomax will be up against big brands like Sony, Apple, Monster, Bose, Panasonic and so on. But at the end of that day, I could not care less and I don’t think that you should either. What I care about is that Sonomax gets an agreement with each of these companies to license the Sonomax technology and sell their own custom fit products. This way, you turn competitors into allies.

I want everyone to be clear; Sonomax has no intentions on dominating the ear phones market with its own brand. Sonomax plans to shape it self into a money printing machine through the collection of royalties when companies like Sony sell a Sony head with “Sonomax Inside”

Read this:

http://dqkjwx3xr6pzf.cloudfront.net/c87577/Sonomax_Feature_Note_Industrial_Alliance.pdf

If Sonomax reaches its targets then Sonomax will earn $1 per share. That’s assuming that over time they gain only a 4% retail market share! 4% is not huge. If Apple, Monster, Sony, Bose, Panasonic, RIM, Motorola etc etc. all use the technology then a 4% market share is small potatoes IMHO.

When Sonomax reaches their target, and if they are still growing they could trade as high as 10-20 times earnings. If they are still innovating new products they could trade 20-30 times earnings.

So, lets be sceptical, they reach their goal and trade at 1 times earnings which will value them at $1 per share.