The Company’s sales service consists of face-to-face sales calls made to independent retailers. We sell new items, incremental distribution of core items, promotional orders, shippers, racks, pallets and ‘virtual’ pallets. We charge a fee for this service. The fee is calculated per new item sold, per promotional case, per shipper, and per pallet. We also present retailer financial incentives (i.e. billbacks) to the retailer on behalf of the manufacturer client. These billbacks are then paid by the Company directly to the retailer once the Company is reimbursed by the manufacturer.
Our sales personnel are 100% commission-based. The typical sales territory consists of 80-120 retail stores that are called on a coverage cycle of every 3-4 months. Some of the higher volume stores are called on monthly.
Our service is 100% variable. There are no fixed costs involved with our service. This means that clients only pay for our service once a sale is made – and then only for the agreed-to fee for that specific sale. We do not charge any sort of ongoing commission for “turn business”.
Once our sales team generates an order from a store, our sales person enters the order into our web-based system. At that point the order is provided to the appropriate wholesaler for fulfillment. The Company never takes actual possession of the product. Instead, we work within the existing distribution supply chain, between the manufacturer and wholesaler to ensure the order is delivered when requested.