By: rtrax1 Emails from STRU
Thursday, 12 Oct 2000 at 2:58 PM EDT
E-mail conversation with Doug last couple of days...
Hello Doug,
> >
> > I've appreciated you keeping many investors informed as well as you can
> with
> > status of Struthers. I read the RB board daily and have held and
> accumulated
> > shares for my family for almost 1 year now. 3 other family members plus
> > friends have also accumulated shares. We all pray and hope you continue
> > growing the business for the long run, and we appreciate you working
> > diligently on the fabulous business plan you and your team has put
> together.
> >
> > Recently I read that we make about $450 per head (Pig) when selling
retail
> > direct. I'm assuming we receive a different price selling through an
> > intermediary who helps distribute the pork to major retailers and other
> > countries under the label Tendur Prime. If so, how much should we expect
> net
> > per head when selling through intermediaries? Rough estimate or range is
> > acceptable, Just trying to get an Idea how much a difference their is
from
> > selling direct compared through distribution channels.
> >
> > I'm very excited about my investment in STRU, and I look forward to
> holding
> > shares for many, many years.
> >
> > Thanks in advance for your reply,
> >
> > xxxxxxxxxxxxxx
> >(rtrax1 on RB)
-----Original Message-----
> From: Douglas Beatty [mailto:dbeatty@struthersinc.com]
> Sent: Tuesday, October 10, 2000 4:12 PM
> To: xxxxxxxxx
> Subject: Re: Doug - Re: Revenue structure of Tendur Prime through
> Distribution.
>
>
> Dear xxxxxx,
> Yes selling direct does have its advantages...as in the Tender Prime meat
> line. Folks get a superior product which is consistent every time...plus
> when they order direct they receive something free as an extra bonus
...for
> example this month we are including a very good set of chefs knifes which
> retail for $100 in every order...simply because we purchased them in bulk
> and are as good as the naturally raised meat we sell.
>
> Now consider if hypothetically we sell 500 hogs per week in Tender Prime
> directly we make approx. '$X'. If we sell through a product wholesaler
> normally we receive a 30% mark up...the difference may seem less than what
> we make on T. Prime, however, the broker reaches a much larger audience
such
> as restaurants, chains etc. and may process 2000 animals or more per week
> and increase this number over time and if this broker has overseas ties we
> now reach a huge audience...therefore, this 30% becomes very large number
> very soon. I personally would and have not turn(ed) down any requests for
> our products which generate a net profit per animal. And this is just
> Tender Prime. Let us now do the same in larger numbers with our large
whites
> ...to the large packer with more niche markets...now you can see where I'm
> headed...a pork with a story sells very very well...and we have both
"pork"
> and the "story"! I hope you can understand now that sometimes less is
more.
> Lately we have had a great response to our product after sending it out to
> brokers and others for evaluations. Everything has come back very positive
> and although I can not at this time reveal any further information, I
> believe that the shareholders will be very proud of what I and the team
> here has achieved through patience and perseverance and a great business
> model ...for them the farmers and for this Company.
> I hope this helps, I know I did not address #'s in $'s , I have a good
> reason which will be shared with all shortly...just thought I would share
a
> very realistic scenario with you.
> Warmly,
> Douglas
> Dear Douglas,
>
> Thanks for the information. As I have had 5 companies myself, I understand
> the value of the distribution channel and I was very hopefull that you
were
> taking the technology, products, etc., through major distribution
channels.
>
> I found some of the people getting real excited about $450 per head, and
my
> opinion was that selling direct is only a small percentage of the revenue
> streams although important. The larger revenue streams will be
accomplished
> with masses through distribution channels.
>
> I look forward to hearing, when you are available to disclose, about
> distribution agreements for key accounts and major retailers carrying STRU
> Tendur Prime. I think this is key to you establishing large agreements for
> alliance herds.
>
> Best Regards,
>
> xxxxxx
-----Original Message-----
From: Douglas Beatty [mailto:dbeatty@struthersinc.com]
Sent: Wednesday, October 11, 2000 10:30 AM
To: xxxxxxxxx
Subject: Re: Doug - Re: Revenue structure of Tendur Prime through
Distribution.
Dear xxxxxx,
You are absolutely right that Tender Prime is the Hog/product of choice for
the consumer and indeed has caused all of the recent requests for our
products...so you are most correct in assuming the profits from this line of
products are huge...and it was the consumer who dictated this price as we
went through product evaluation processes.
Again, the margins from brokers will be just a little smaller but we have
been labeled a premium product (the best of the best). What happens is that
what ever we charge for the meat they charge their customers a certain
amount which covers our margins and they add to theirs. However, again it
really comes down to the volume of hogs we either process or send to
packers. This is so important , and the reason we are going after a $30
billion niche market...and I am very pleased that we put controls in place
to build a solid base to supply this market and not run into a problem where
we over promise and under deliver , our method of distribution now is to
under promise and over deliver. It is interesting that we were approached
and not the other way around....there is a major shortage of high quality
pork products on shelves and in restaurants today...we have geared up to
supply this demand...the process is to be unveiled before or at the
shareholder meeting. With alliance herds they are joining us because of what
we now have ....distribution channels for their product...in other words we
have happy farmers who know we have a home for their product and they can
see the name right on the packaging which at present they don't see where
their hogs go...pride of ownership...most important with the hog producer.
In short Tender Prime has opened the gates! We are ready!
Hope that this helps...just my thoughts.
Douglas
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
