QUESTION
“I check out the investors blog often. Thank you for continual updates. Can you add to your weekend or even monthly blogging something on revenue? Is it increasing, staying the same, reducing?…Cordially.”
ANSWER
It’s premature to provide specific numbers because the QTR is still not finished, year-end reconciliation has not been carried out, etc.
In general terms, based on shipments which are being planned on a best efforts basis by December 31st, it would appear that we can exceed the previous quarter, as well as the 4th quarter 2010 year-over-year sufficiently so that our increase of total sales for 2011 on a year over year basis will be better than the previous year’s increase. It is also likely that our loss will be reduced again, year over year. In other words, progress appears to be accelerating. There is increasing cooperation with our retail partners, improving internal efficiency and competence. Also, Do it Best is starting to show its impact.
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The Do it Best account has the interesting feature of being a very well organized collection of independent business people, who by their nature are enterprising in their communities. The stores are smaller than “big box”, but the effort and impact by these independent business owners should not be under-estimated.
Here’s an interesting example. Our Retail Support Manager reports that our new outlet in Guam, which deals with Andersen Air Force Base, is off to a very good start. Their first shipment, scheduled to arrive today, is not the first time they have had 1000+ in their possession. While this is the first “Regular” shipment, they have had trial inventory of 1000+ Stain Remover, that sold out. While a mix of 84 small and large bottles will not by itself be considered material, the significance rests in the fact that it happened at all. The outlet is delighted by our interest in supporting their efforts and even confirmed in a discussion with us last night that they have not seen follow-up of our type from a manufacturer in 10 years . Therefore, the first regular shipment to Guam is a consequnce of earlier developments. Now, a routine can be established. How many other similar routines can finally come to fruition with so many stores available to work with? Yes, it takes effort and time, but it is the means by which to achieve our goals. It’s only 60 days since the Fall Market, and there are already between 200 and 300 Do it Best outlets with our product, as best we can tell. It’s difficult to believe that 2012 can be similar to past years, even if we wanted it to be. That’s what makes our current circumstances different to previous years – a U.S. based foundation for significant retail reach finally exists, and is being activated, visibly.
There are basically two types of investors – those who participate in a venture because it is already successful and those who invest in something they feel will become successful. People in the first group who spend their time deriding an enterprise that has not “made it yet” miss the point. Building the enterprise and its ultimate success is a valid approach for people who have what it takes; vision, courage, risk tolerance and nerves of steel. Without investors like us in the second group, where would new business development and growth come from? The role of emergent enterprises in the well being and growth of the economy is huge. Those of us in this second category of investor, the risk takers and builders, have a lot to look forward to with Winning Brands, in my opinion. Thank you for being part of the team.
