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Voices of Reason

05/31/14 12:55 PM

#17751 RE: majorpain #17742

I simply assumed Trent is the marketing man since he is being paid significant consulting fees. It really doesn't matter who within OWOO does it, but a simple conversation with the store managers to get their product better visibility was just a suggestion that I would presume you would agree with me would be constructive for shareholders. Simply my observation that the dolls were being thrown on the shelves like any other can of beans.

Regarding the sales figures, it is not speculation, the latest quarterly statement is clear that the dolls are being sold for a loss since the cost of sales exceed the sales revenue - these figures were before the HEB launch, so one can only assume that selling dolls at $14.99 will look worse than selling dolls online at $21.95 to $24.95 range. I was simply trying to quantify where they might be at in terms of margin for the HEB sales. Speculative - but probably not far off. Feel free to pick a more optimistic calculation - the basis for my numbers are backed up by known facts (sales margins, in store pricing).

Please note that my speculative opinion is that their cost of sales is probably more in line with the $14.99 HEB sales price - probably break even just to get their foot in the door. I think this is a good thing for the company - they have to start somewhere. However, extending that "success" with a big retailer will not translate into meaningful sales figures and/or margins anytime soon.