Fuse Science Inc (DROP)

[Baystbully]

Retailers don't want to buy a boat load of product and get stuck with it. The result is having to take discounts by marking the product down perhaps even for a loss if they can't sell.

Today's retailers buy in small samples in the beginning to understand its customers and behavior.

Considering this is a trial period for FUSE products I wouldn't expect a large investment in the products from retailers.

GNC has a good sample size, however, FUSE has yet to market and advertise so the true trend of the product sales and customer base is not there.

With all the athletes and if FUSE starts marketing and advertising, we may (keyword may) have a retailer buy in bulk taking a chance on the product because of in store promo displays, but they get that anyway with any purchase so I don't think that would happen.

It doesn't matter anyway, if the products sell, they will reorder. After a few cycles, if retailers see faster sell through and they are missing sales as a result of being out of stock, then they will purchase according to their predicted sell through, not some arbitrary number that's a gut feel.

Don't be discouraged by this as every product goes through this. Again there's always exceptions as some smaller retailers might not have adequate systems to manage the process.