Premier Brands Inc.(fka BRND)

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Costco process

Other costs: Review and take into account these additional costs. 1. Customer service support: Do you have the phone support required to handle the influx of customers or will you have to hire a company to handle this aspect? 2. EDI Costco (Electronic data interchange): Price out EDI to include in your financials. 3. Promotional costs: Will you want to participate in any promotions? The various promotions at Costco are where the sales really explode and should be planned for accordingly. 4. Shipping: Costco will require a delivered cost to their depots. You must cost average this out and include it in your cost structure. 5. Returns and defects: How will you manage the return and defect portion. This can get expensive and should be carefully evaluated.
Potential sell through quantities: Based on what divisions of Costco you are going after create some scenarios that show potential quantity sales. Costco has 3 divisions in the US and an International division: a. Costco wholesale, b. Costco.com, c. Costco Road Show, d. Costco Canada, e. Costco.com Canada, f. Costco Mexico, g. Costco UK, h. Costco Taiwan, i. Costco Japan, j. Costco Korea.
PNL: Create a item PNL using the above information to determine program viability. You never want to do this after the deal has been made. Entering into a program and finding out after you are having success that you are losing money will be devastating.
Costco: Decide which division you should contact first. Make initial contact with the buyer and gage interest. You will probably need help here as getting through to Costco buyers can be very difficult if not impossible. If enough interest exists set an initial meeting at Costco HQ in Seattle WA.
Pre-Meeting: Final decision on at least two, no more than three packaging options. Nail down your options as you will only have approximately 30 minutes or less to pitch your idea to Costco and you want to have time left to discuss next steps. Make your final decision on cost pricing to include in the presentation. Create your presentation and print out more copies than you think you will need. Confirm your meeting one week prior to the date.
Meeting: In your presentation be thorough, but not over the top. Keep your pitch smart and to the point. Be prepared for Costco to have some questions, not just about your product, but about you and your company as well. Know your competition and your market. They will test you. Make sure you nail down next steps and follow up before you leave the meeting.
Helping you partner with Costco and other large retail companies is my specialty. I can help you with every item in the above outline.



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