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Sunday, January 31, 2010 1:55:02 AM
Several people have been asking if we should be expecting huge jumps in revenue...
Look at the facts... For example, take the recent Walgreens announcement.
"...According to the study, sponsored by Mars, Time-Warner, Wrigley, Coca-Cola and others, 1% of all supermarket sales happen at the checkout counter..." - The Consumerist
"...Overall, the Mars/TDS survey concludes that 46 percent of all shoppers make checkout-line purchases at least once a week..." - Front End Focus
"...Food placement also can drastically affect what students choose to eat. At one Minnesota school, chips, granola bars and desserts were available by the cash register, where there was often a long wait. As a result, many students picked up the snacks on impulse. When the school replaced the snacks with fresh fruit near the cash register, sales patterns changed. More students bought fruit, fewer bought the snacks. The school’s total revenue remained about the same..." - Washington Post
You get the idea! Lets's crunch some numbers:
Walgreens customers: 800 - 1000 per day
# of stores with Wings of Nature Bars at Front End: 200
Number of Impressions: 160,000 - 200,000 per day
Impressions per week: 1,120,000 - 1,400,000
According to the front end study, of those customers AT LEAST 46% of them WILL make AT LEAST one purchase per week at the checkout:
515,000- 644,000 purchases per week at the register.
How many Wings of Nature bars will sell? Only time will tell BUT given the fact that we know they taste good (review via the nibble.com) and comments that Whole Foods is having a hard time keeping them in stock, I say it's very realistic to think we could see at least 5% of those sales.
That could be anywhere from 25,000 - 32,000 bars per week with a 5% purchase rate at point of sale. Just imagine at 10% purchase rate or even higher down the road... So what does that mean for sales? With a retail of $1.69, we could be looking at anywhere from $2.2 - $2.8 million increase in revenue.
THAT'S JUST OFF THE WALGREENS NEWS. What about the Ohio stores? Or the effect the Orlando Magic sponsorship will have on sales? Or when Pharma Health begins to push online sales like crazy? What kinds of margins will the organic energy shot have? How much will MRS increase our sales?
Lots of great questions BUT WHAT WE DO KNOW is that we have an incredible management team who is busting their asses to increase sales, acquire new brands, and GET A NATIONWIDE DISTRIBUTION NETWORK. They are working with some of the best people in this business and if you all didn't believe that, you wouldn't be here.
And then there is the bigger questions.. what if Whole Foods or Walgreens picks up their brand nationally? What else does M.F. have in store for us? Who is this company we are acquiring that has a MINIMUM of $1 million in sales?
Too many people's attitudes of the company are influenced by the day to day fluctuations of the PPS and not on the SOLID facts of what this company has accomplished in just a few short months. I've lost count of how many PR's we've had since November. Just give it some time, sit back, and relax.
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