QUESTION
Hotels, no names needed just a count would be enough. Quarter pallet display in Canadian National Account that was approved last year to start this quarter. Is this still on? Sam Club, it has been almost a month since the last event and only one this year. Is this the pace to expect for the rest of the year or could that excelerate?
ANSWER
- HOTELS: For technical reasons, we are still holding at the 30 properties who are either buying, or deciding whether to buy. Primary consideration is making a policy decision about how we will handle installed pump mechanisms. These would have to be replaced if contracts are shifted to a new supplier in some cases. We are assessing whether our current business goal requires this, or whether properties where this is not a requirement should be focused on first. It’s a trade-off between account size and capital outlay. Secondary consideration is the advantage of consolidating at this number of accounts and prospects long enough to develop a compelling statistical case study illustrating the savings in money and effort (and better results) that participating hotels are experiencing with our products, prior to approaching more prospects. Such additional preparation could make the future prospecting process much more efficient and ultimately increase the pick-up rate better than standard cold calling – particularly if results were shared by way of industry publications. It’s an active matter.
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- QUARTER PALLET: That retailer is keen to proceed but has introduced a costing/pricing aspect which would create problems with our undertakings to others. In the meantime, a similar opportunity is under consideration with another party that would not require uncomfortable arrangements. It’s an active matter.
- SAM’S CLUB: It has become clear that 1000+ Stain Remover sells in this environment, at this price, despite being unknown. Therefore, the price/value proposition for the package in its current configuration are proven to be viable as far as the consumer is concerned. We custom made the SKU for the Sam’s Club trial in a low volume production run – which is not efficient. If we expand the program, it would be necessary to achieve the economy of sale through larger production runs. Accordingly, we are weighing the advantage of carrying on with the current cost structure for the sake of it, vs the value of approaching it on a larger scale so that profit is realized in this program – but requiring larger up-front commitment by both the retailer and ourselves (and allowing the extra time required for the approval/implementation of the larger commitment). It’s an active matter.
