Shareholder Question
“Sorry to bother you again but I have one more question, could I get any insight to your companies current revenue for 2020 so far? The last reports uploaded were 2018?”
Answer
Sales have not increased in the period since our last official filing. Annual turnover has been nominal due to a lack of capitalization, as previously discussed in this weblog, but has stayed above $100,000 annually in real cash terms. This means that we are not a shell, and have never been a shell. Our upside heading into 2021 arises from a new marketing program with participating national retailers in an organized manner for our lead product, 1000+ Stain Remover, as well as new commercial partnerships with institutions consuming hand sanitizer; a new market for Winning Brands.
Current Winning Brands structure in personnel, premises and production can accommodate a sales increase to approximately $2 Million annually without any significant internal adjustments. This is what makes profitability in cash terms possible for the first time. Our operating costs are lower than ever, and our manufacturing and distribution structure can accommodate significant growth of volume on a variable cost basis (as opposed to requiring high fixed costs). We can use this “profitability formula” to retire obligations on an ethical basis and build a stronger balance sheet for shareholders.
Therefore, an assessment of Winning Brands’ appeal to investors boils down to this essential question – will this new cooperative marketing program with our retail chain customers increase sales? If so, then they can be scaled up fast.
We can achieve the first $2 Million annually if 2.5% of Canadian households purchase 1000+ Stain Remover and use it normally. In the USA, with a population that is 10 times larger, the opportunities are real, if approached effectively. Success of the Neighbourhood Mailer program in Canada stimulates success with Do it Best in the USA.
Similarly, success with Lowe’s in Canada may create renewed engagement with Lowe’s USA for 1000+ Stain Remover. Winning Brands conducted a successful test of 1000+ Stain Remover with 3 Lowe’s stores in Ohio, on the basis that the buyer at Lowe’s USA would then permit an expansion into a regional test with 100 stores. When this was ready to occur, a new buyer replaced this position, and this progress was halted. However, new success in Canadian Lowe’s stores could re-open that door with Lowe’s in the USA.
HomeDepot.com online sales growth of 1000+ Stain Remover in the USA needs stimulation through digital marketing to build awareness. Below is picture of the online order page for 1000+ at Home Depot USA. Improved turnover here can lead to new engagement with Home Depot in Canada.
There are many interconnecting elements – all of which can benefit from new momentum. The bet here is whether the new marketing program will contribute to this new momentum. A factor in our favour is the renewed “market positioning” of 1000+ Stain Remover. This will be described in the next post.
