Innovative Food Holdings Inc (IVFH)

[Dickmo]

Martha had no effect because it's not complicated to understand why Martha would deal with this organization. Picture Martha's people holding a bunch of meetings with people that ship products. They can be branded places like iGourmet and they can be nameless fulfillment centers, of which there are hundreds across the country.

So what is Martha looking for and what are the fulfillment centers looking for? Martha will likely do 99% of the advertising. All they want is fulfillment (packing and shipping). The fulfillment center offers no added value. So iGourmet walks in and so do 5 fulfillment centers. The 5 fulfillment centers want to make a profit from working with Martha. They get no added benefit. iGourmet wants to take the order so they can get the e-mail and street address. They can add a flyer to the shipment. iGourmet doesn't need to make a profit. They can work at cost. Martha's people are not stupid. They give iGourmet the deal and save money on each shipment.

Now the big question is - 'can they capitalize on the name and address they effectively bought?' And the answer is 'we will find out a few years from now.' iGourmet needs to step up their marketing game. This is an opportunity to cross sell and buy the names of people who buy things via e-commerce. If they can't convert these people to iGourmet customers, they should throw in the towel.