Empty shell

[david444]

BRGO shopNBC deal is worth more than $7M (atleast 7 million dollars) :) Check this link

http://smallbusiness.blogs.cnnmoney.cnn.com/2009/01/04/how-to-get-your-product-on-qvc/

And pay attention to this quote from the article -

For ShopNBC, the typical viewer is over the age of 45 and is affluent, with an average household income of more than $70,000. QVC says its customers are predominantly women, though its demographic changes hour-to-hour depending on programming.

Knowing your audience's tastes is only the first part of the battle. The next step for applicants is demonstrating a capability to produce in mass quantities.

"They have to have their ducks in order," says ShopNBC Chief Merchant Kris Kulesza. "If you can only make five to 10 units of something, that could close the door." ShopNBC, which broadcasts to more than 70 million homes, might ask vendors to have as many as 5,000 units available.

So the minimum number of units that shopNBC requires for an item to be on a show appears to be 5000.

BRGO has 14 items on shopNBC - http://www.shopnbc.com/SearchM/Default.aspx?page=LIST&free_text=bergio

Let's assume avg price of a BRGO piece is $100. and let's assume shopNBC went with the minimum requirement, which is 5000 units for a piece. So for one BRGO piece, total sales on shopNBC would be

5000 units * $100 (avg price) = $500,000 ($500K - 1/2 a million dollars for one BRGo piece)

14 BRGO pieces * 1/2 million dollars = $7 MM in sales.

This is based on shopNBC minimum requirement to select a vendor. A vendor should atleast be able to come to the show with 5000 units.

If shopNBC has 10,000 units ready per BRGO piece, then total sales would be
10,000 units * $100 (avg price per BRGO piece) * 14 BRGO pieces = $14 MM in sales.

Guys - this is huge - and hence the mega deal :)

And remember, if the sales are good, shopNBC can increase manufacturing capacity, can increase the number of shows, which would then increase profit margins for both shopNBC(or VVTV) as well as BRGO.