QUESTION
- “…it might be interesting to know your thoughts about having a satellite office/presence in the US to cater to the growing US based clients for WNBD. Not saying that a Canada address is detrimental to the progress but an address in the US might go long ways in strengthening relationships and putting a local face to the company. Please share your thoughts via the blog.”
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ANSWER
This is a possibility, but in our view, too soon. Much of our product sold in the USA is already made in the USA and prominently marked as such on the bottle. In the opinion of many, this is a substantial factor in the development of the comfort that you are referring to. Also, there will no doubt be an increase in the number of arrangements with persons who are local; accredited sales representatives, local warehousing and demonstrators for example. Those people would all have business cards with local addresses. Furthermore, most stores draw their supplies from a local distributor. As a result, from the perspective of customers, there is already overwhelming American content in the relationship to the product. As far as the U.S. government is concerned, there are agreements in place that treat both countries as exempt from the usual “foreign entity” realities that would affect suppliers in other countries.
As a business question, what would be the ideal location for a U.S. office? There are many views on this. On the one hand, New York State is logical. It is close to our existing office (and thus presents natural synergies). We already carry out manufacturing in NY. NY is in the most heavily populated region and has excellent flight connections. There are points in favour of a distant office (West Coast), or a low tax state, access to talent pool, etc. Technically, many people may be surprised to learn that Virgina gets top marks, although it doesn’t come to mind first. See this CNBC report: http://www.cnbc.com/id/43381920/Virginia_is_Victorious_Again_In_CNBC_s_Top_States_For_Business
Our current attitude on the subject is to maximize the opportunity for Americans to provide U.S. based services to Winning Brands as individuals in order to avoid office cost escalation prior to being clear about the benefit of an alternative office. We continue to study the legal and tax implications of jurisdictional domiciles – it’s a serious matter. Naturally, all this is a work in progress and will be affected by the form that our growth takes in coming years.
In the meantime, our current office near Toronto is well situated on the continent, being in the most densely populated region of America, close to U.S. financial and regulatory interests and sharing the Eastern Time Zone. (See population density map below. 180 million people live within the three rings. Our existing office is in the center point of those rings).
Thank you for your interesting question.
