|
|
1)Can
you tell me how "direct sales" applies to this business?
2)What
transportation costs are involved?
3)Will
I have to work with retailers?
4)What sort of margins can I expect?
|
|
|
Can
you tell me how "direct sales" applies to this business? |
|
|
One
of the most noted trends in business today is direct sales between
the producer and user. The success of this concept is
highlighted by companies like Dell computers. As the
marketplace becomes more competitive, the profit margin of each
level of distribution can become a burden to the product
manufacturer. By using a vending system, the ice producer
receives the profit of any distributor and that of the retailer. |
|
|
|
|
|
What
transportation costs are involved? |
|
|
We
are all aware of the substantial costs involved in transporting
ice to retail locations. The costs of trucks, fuel, and
labor are very substantial. This is particularly true when
an account only needs a minimum amount of ice during any
particular stop. With the Ice Igloo vending system, you are
notified when the products are running low and can make a delivery
with the maximum amount of product. The system also allows
the product mix to be varied per location, this allows the
operator to change the product mix so that each product will
be low when the next delivery is made. |
|
|
back
to top |
|
|
Will
I have to work with retailers? |
|
|
No, when you sell your products to a retailer not only do you lose
his profit margin, but you are at his mercy. If a competitor
cuts his price or offers complimentary ice, you have to either
decrease your profit margins or lose the account. With Ice
Igloo, these risks do not exist!
|
|
|
back to top |
|
|
What
sort of margins can I expect? |
|
|
With Ice Igloo, you become the retailer
and earn his margins. This results in substantial increases
in our profit margins. |
|
|
back
to top |
|
|
|
