Innerscope Hearing Technologies Inc (INNDD)

[mattpaull]

Was doing some DD today and came across this article. Not sure exactly when it was written, but I am sure Wal-Mart supplier relations have not changed that much over the past 5 to 10 years. Talks about becoming a suppplier for Wal-Mart

http://smallbizlink.monster.com/training/articles/243-the-profits-and-perils-of-supplying-to-wal-mart

-Bruce Zutler, CEO and co-founder of MCI Products Group, a New York-based company that specializes in new product development and overseas sourcing, recommends small suppliers think of the test-run as the time to prove they are capable. “If you have a good product and you strengthen their sales, then the buyer will stay with you,” says Zutle

Found this interesting about keeping contracts with Wal-mart. From INND's past experience with hearing aids maybe they can accomplish to keep contracts renewed.

-But suppliers should know that Wal-Mart will only work with suppliers that can prove three-quarters of their business comes from entities other than Wal-Mart, per Wal-Mart policy. After proving that, the key to impressing a buyer is to show understanding of the potential market, says Theresa Barrera, vice-president of supplier diversity for Wal-Mart. “What sets some of these smaller suppliers apart is being innovative and knowing what sells in their regions.”

This is great because this means INND must have other means of profit other then wal-mart. IS INND innovative in its products?

-Of course, even if a supplier does manage to convince Wal-Mart to sign a supplier agreement, it almost never obligates the retailer to buy anything. “I tell people not to pop the cork when the contract is signed, but pop it when the purchase order comes in,” says Painter, who now runs her own law firm in Texas, specializing in domestic and international business litigation. Wal-Mart says its payment cycles vary by category, but that most suppliers are paid within 30 to 45 days.

we will have to wait for the purchase orders to really seem some price movement, but the wait may not be long. They are already being sold on the walmart.com

-And suppliers looking to sign should also know that even if everything is done right, the state of the economy could derail chances that the relationship is profitable, at least in the short term. Nina Kaufman, a business attorney in New York who posts frequently on her blog, AskTheBusinessLawyer.com, says suppliers should be aware of how large retailers like Wal-Mart manage low sales that result in surplus inventory. Those designated “guaranteed suppliers” guarantee that their product will sell. If they don’t, a provision in the contract makes them liable for chargebacks.

are hearing aids recession proof? I think at least their is a large enough number of the population at the age or soon to be of needing hearing aids.

Is INND a guaranteed supplier? Any one know?

-Also its great with the walmart contract comes the opportunity to work with great minds in the business world that could help INND business for the better.


Anyone smart out their actually doing any DD? What do you think?