Friday, October 10, 2014 8:01:15 PM
It's still a cost - the beans would be bought, shipped, roasted, packaged, etc. Regardless of it being a sunk cost, it's a capital outlay that they'd have to make. Remember a while back when they had over $1 million in inventory? That didn't lead to extra sales; I think all that inventory was wasted as it came off the balance sheet without an increase in sales.
I honestly don't think they can grow. If you take away Walmart, they're already in all the major grocery chains in the US (I know there is a world market, but it's expensive to ship around the world and JAMN can't afford it). In 2013, they put all their effort into getting onto store shelves. That was great; they had distribution, but there was no demand for the product.
They failed to do in retail locations what they're doing in the office supply business - starting locally and building (though even there they seem to be starting locally and not growing at all). They should have targeted key demographic areas, like bigger cities, done advertising in those areas and grown demand before they increased distribution. They thought that just putting the coffee on store shelves would be enough to sell the coffee, but it's not.
But now it's too late. They ship to too many locations; they can't have an ad campaign that covers all the locations where they sell.
They also should have chosen some partners better. AVTC had promised 1,000 automated coffee machines for 2013. The last I heard, they made 70 machines.
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM