California Grapes International, Inc (CAGR)

[farsue]

btrjr.. totally agree with ur opinions outlined in points 4) & 5) hereunder (click on immediate link below for more details) and would go even further to suggest that "Consignment Partnerships" { see excerpts below & link for complete details } might be the logical solution to overcoming these shortcomings... would appreciate ur feedback (time permitting) on this suggestion if u think its workable...Tia!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59639467


4) I think the business model has to change from owning and selling the inventory of F&B products to capitalizing on the logistical and distribution solution it has created. What I mean here is currently GDHI is purchasing products, requires a lot of $$ and then selling the product to get more money to buy more. Because the time between initial shipment of product to receiving payment for those product after they have been sold can be up to 6 months they need to have a sizable amount of capital on hand to really grow this business.

5) Instead of owning the inventory I think it would be better if they develop partnerships with F&B companies where GDHI pays for the logistical transportation of the products but not the inventory. Once product is sold then GDHI retains their portion of the sales and credit the owning companies of the products sold. This model allows GDHI to have a significant amount of inventory that they could sell without having to invest/risk a lot of money in owning the inventory.

{ Excerpts of "Consignment Partnerships & link for more details below }
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59684050

Consignment Benefits
Reduction or redeployment of personnel
Reduction of transaction costs
Reduction of handling costs
Reduction of insurance costs
Reduction of inventory taxes
Vendor consolidations
Reduction of interest costs
Elimination of opportunity costs
Elimination of stockouts
A primary objective of consignment is to reduce the customer’s cost of carrying inventory. This includes the cost of money, shrinkage, taxes, handling and storage. Typically, these handling costs range from 18-30% of the average inventory value.
Additional benefits to the customer include: { click on link above for complete details }