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Re: PoemStone post# 3668

Tuesday, 07/19/2011 12:59:43 PM

Tuesday, July 19, 2011 12:59:43 PM

Post# of 24254
As always, Eddie is the best to provide clarity to these questions - but, my understanding is that WW provides a promotional function for SMKY as they commnuicate with their customers via their website and other publications. Customers, in turn, order the product whereby the order may be routed through WW, but I'm pretty sure that the product is not, i.e. WW doesn't order, stock, and deliver SMKY products. I'm also quite sure there's a fee to WW for whatever promotional measures they take.

But, to actually answer your question - based on conversation with Eddie and his postings on here, there will be no set contract with WW where they agree to purchase X amount of A, B, and C product from SMKY. Instead, they launch SMKY as one of their approved products to their clientele, and orders (hopefully) start rolling in. Again, if my memory serves me correctly, if only about 2% of their membership become regular SMKY buyers, it will max out the capacity for the existing half-size oven, which, without looking at old posts, I think translate into about $30MM per year.

So, WW could be massive, and instead of a set contract that would have to be renegotiated, once it's opened up to WW clients, and as word of mouth through social media/networking and reviews starts to spread, volume should start to increase exponentially potentially creating both the "problem" of needing to order a full-size oven for further capacity, as well as the revenue needed to finance it "in-house."

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