Dark, heres how i see it...
The company does not have a hard time getting these smaller retailers to place INITIAL orders. Either directly or through the better distributors, like Lancaster and the Australian Ambassador, etc... IMO the reason for this is because these reps are HANDS ON. When these store owners get a demonstration, they're easily convinced on the products merits. The stuff works!
HOWEVER, they have a harder time selling to the END user because its unknown. This is not uncommon, thats how it is when you dont do much marketing in a region/country.... which is why revenue is still under $1,000,000
1 case of large bottles = $48 ($4/bottle wholesale)
4200 accounts buying one case = $201,600
This is not an overwhelming amount of money, agreed? lol
...but lets put this in perspective, as Eric has tried too in many ways. Some get this, some dont...
Some of these stores dont even average 1 per WEEK... Either due to economic reasons (low foot traffic), bad placement, etc... but MAINLY due to MARKETING IMO
The hardest part is getting ON the shelf, the marketing is really not that hard. You just have to pound a convincing message into the consumers head while having it AVAILABLE at many stores.
Sounds easy enough, but this takes $$$$, which is why he has to sell stock... If they DONT sell stock and fuel this VERY important stage we are entering, EVERYBODY LOSES.
However, if they sell another 200,000,000 shares or so over the next year and utilize Hawthorne to fuel massive interest in a 330,000,000 population country, this stock is going to be MUCH higher IMO... on speculation alone...
Understanding that many of these stores are not selling mass quantities also gives us a hint towards the potential.... Based on the stores they are ALREADY in (pipeline), theres a HUGE opportunity for growth. The company doesn't even need to land any more locations to see 8 figure revenue, they just need more people BUYING product.
Now also keep in mind that the BIGGER names sell more due to heavy foot traffic... One Canadian Walmart location with a "test" rack was selling 50 bottles per WEEK or 7 bottles per day.... If these 4200 accounts were to average just 1 bottle per day (some will sell more, some will sell less) it comes to $6,132,000 revenue... 1 bot/day is really not that much at all for a CONSUMABLE product that EVERYBODY can find a use for.
With Hawthorne and a national NA building a name for the products, all these stores will benefit greatly. This is the perfect setup IMO... MOST products launch on TV and dont hit retail UNTIL they PROVE they are worthy. Being able to be on the shelf and on the TV at the SAME time is the most important aspect i see... Most TV products fail before they get to the shelf, but WNBD CANT fail the infomercial. The marketing is beneficial no matter if it sells on TV or not cause they already have a growing retail presence. All profits from the TV can be used to run more ads.
The 1 bottle/day figure i used would be pretty low for an infomercial product in a MASS retailer IMO. The "As Seen on TV" section is heavily browsed by people looking for quirky new products. It has more interest than the paint isle and less competition than the cleaning isle, agreed?... Some people try the TV products just to see if they live up to their claims, which WC does! Impulse buying is STRONG in this department... but these consumers might not be the type of people that are willing to place an order on TV. EVERYBODY buys from stores.
The more shelves the product is on before the Spring Hawthorne launch, the better... and i have a feeling they are now able to use this launch as leverage for additional retail interest. Dont be surprised if we see another USA NA announced before Spring.
Some dont like this gamble, but i have a hard time finding better in pennyland. With strong margins and the fact that EVERYBODY can find use for the product, big money can be made... 9 figure market cap potential here, no matter if it gets there on ACTUAL results or speculation/excitement.
My posts contain many opinions. So please do your own research and verification.
