QUESTION
In the Investors Section (of the website) you list the 6 phases of your business plan. It states that you will need at least 5 million in revenue to become self sustaining. Is this number still accurate or will you be able to become self sustaining even sooner since you have been lowering operating costs and debt?
ANSWER
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It will take less to be self-sustaining, with our efficiencies continuously improving in a number of areas of operation, including importantly, manufacturing. Half of this sales sales figure would now be more than sufficient with the current infrastructure, $2.5 Million. Naturally, the higher the revenue, then the more can be reinvested in marketing from working capital. $2.5 Million can be achieved with approximately 1,500 stores selling, on average, a bottle per day (30.7 oz). This is why the Do-it-Best listing is such a breakthrough. That organization by itself has over 4,000 member stores who can be reached efficiently through internal information distribution and centralized invoicing (even if goods are drop-shipped). Although we have serviced good retailers to-date, we have never had access to 4,000 with such efficiency. This efficiency is not only operational – it is a marketing efficiency too. Never before have we had in the USA a single banner logo that could be put into advertising that references stores which are situated all across America.
The fact that we will not be available in all 4,000 stores from the first day is not as important as the huge fact that a practical basis exists for the first time to achieve this. When the day comes that 1000+ Stain Remover is available in a fraction of all retailers that it deserves to be in, say 20,000 of all stores in America, then the numbers add up quickly. That quantity of retailers at a bottle per day would deliver over $30 Million in sales. It is impossible to determine in advance what particular number of stores will sell what particular number of bottles. The outstanding business opportunity for Winning Brands is that the remarkable versatility of this cleaning solution lends itself to retailing through a cross section of retailers and locations domestically and internationally. With focus and determination, our business model is highly efficient in delivering attractive profit once the critical thresholds in the equation have been reached. Clearly, much could go wrong in the meantime – however – a great deal could go “right” as well. There is no reason to believe that the other spirited independent consumer products that “made it” have nothing in common with our own story. There are plenty of examples to look at and see our own reflection, merely at an earlier stage of development.
