The infomercial campaign is probably not a campaign to generate immediate profits (although it will generate infomercial operating expense). Rather it is a marketing awareness campaign to thrust this into retail stores. In essence it is an advertisement just like any other product you see in stores today, so when it hits the stores they fly off the shelves, thus resulting in more wholesale sales. For those of you wanting to see a profit from infomercials this may not happen either, as revenues will feed the marketing awareness campaign. Profit will come when we hit the stores.
For instance run a few numbers.
Home Depot has 2,241 stores nation wide. Let’s say they stock 50 units in each store and they turn over those 4 times a year. 2241 stores x 50 = 112,050 units x 4 turnovers a year = 448,200 units. We can plug what ever in but I would think a 4X turnover is a little low but I want to be conservative. Units could be anything; I would think they would sell them in 4 packs, and possibly 2 packs. I’ll let someone else put a profit per unit on these but you get the scope. And this can be up for discussion.
Now, Walgreens celebrated their 7,000 store last October, let’s say they stock 20 units and do a 3X turnover. 7000X20X3= 420,000 units sold using those figures.
I have no clue what turnover will be, I think my figures are conservative but someone in retail may want to comment on bulb turnover.
These are only 2 retailers, I imagine there are hundreds if you count the regional retailers like say Publix Supermarkets primarily in the South East and Florida which operates 906 stores, Kroger operates 3,650. In the next year we could see millions of units sold and it will be a result from the marketing efforts we see in the form of infomercials now.
Add to the list, ACE Hardware, Wal-mart, Eckerd’s, Rite-aid, Big Lots, Lowes,Target, Bed Bath and Beyond…… and on and on. Respond with a few regional stores in your area, or big box stores I missed.
I guess what I want to get across is the ad campaign may not produce the pie in the sky expectations that many want to see in the form of infomercial sales. So, over time when people are begging for numbers keep in mind that the real numbers will come when this hits the shelves and we are rapidly moving that direction.
Check this link below for a good read, we are at the right time doing the right thing: Great Read if you’re a ZVTK stock holder.
www.eppsconsulting.com/freechatblog/2010/01/31/as-seen-on-tv-no-longer-just-seen-on-tv/
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