Hello Tony, Thank you for your To make sure that I do not waste your time, I want to be as open and clear about everything, as much as possible. Please let me know if you do not understand something or want clarification: I am the CEO of a new company that will supply pet products to animal shelters. We are a part of a larger corporation. It i Show More...
Hello Tony, Thank you for your To make sure that I do not waste your time, I want to be as open and clear about everything, as much as possible. Please let me know if you do not understand something or want clarification: I am the CEO of a new company that will supply pet products to animal shelters. We are a part of a larger corporation. It is my job to grow the company to this new market. Our parent company have had a long and rich history in selling to large stores, such as Walmart, Target, K-mart, Petco, and Petsmart. All our products have been made in the US since 1990. Recently, our board of directors dec would like to expand our distribution network to animal rescue organizations. However, because they are nonprofit, they cannot afford the prices of products Made In USA. My job is to find a reliable manufacturer or trading company in China, India, or Taiwan to do business with. The company that I am in charge of will be branded as a social enterprise, you do not need to worry about that for now. We aim to provox sets to people who adopt from our clients, the animal shelters and rescues. These box sets will save the shelters a lot of money and need to make them a lot of profit. These box sets will also make it easy for the people who adopt the animals because they only need to buy one, and have everything they need for their new pets. My project director and I are still decwhat will be in these box sets. For now, we have dec each box set should at least have a matching collar, harness, and leash. At least one dog toy, a waste bag dispenser and a couple waste bag rolls. If you decrk with us, and we can work out a contract, I will update you on what we will want in these box sets. Please understand, we are a B2B company. We sell wholesale direct to businesses, and these businesses sign a 6 month contract with us. The minimum order each business has to send in to us every month is 30 box sets, depending on the size of the shelter or rescue organization. This is a six month contract, so every month they will order at least 30 boxes for a minimum of 6 months. As it stands we are partnered with about 20 organizations in 15 states (that is 300 organizations total). By the end of 2018 we are projected to have at least partnered with 30 organizations in each of the 50 states of America. Due to legal obligations I cannot give you the name of the parent corporation, they want to remain separate from our company because our parent brand is known for only selling products made in the USA. However, I can assure you that we have their resources at our disposal, just not the name brand. My job is to create a new distribution network with animal rescue organizations across America. Our board of directors require a minimum fulfillment of 10,000 box sets a month by Fall of 2018. Right now we have clients in 30 states across the US waiting for our sample box to check for quality and to preorder. If you are to work with us, we will need a two year contract. This two year contract is to ensure a set price range for these boxes, and a discount ratio based on quantity purchased over time. It will also serve to protect your best interest in working with: you will get first priority for fulfillment, and a guaranteed minimum order quantity of at least 500 box sets a month after the first two months of working with us, and starting 2018 a minimum order of 5,000 boxes a month. We will reserve the right to terminate the contract at any time, and if we fail to order the minimum amount for even one month, you will have the right to terminate all discounts accrued. We would like to extend the same relationship we are establishing with our clients, with you: If our clients buy from us just one time, they will get a discount based on quantity. But if they buy a 3 month subscription (their order is renewed every month for 3 months) they get an additional discount because they are working with us for 3 months instead of just once. We believe that a long time client is better than a one time client. If we work together, I wish to be a long time client with you. As such, I would expect a better deal than what your one time customers are getting, even at wholesale. Please let me know if you understand everything. Here is additional information in case the above does not make sense, along with my pricing range for the box sets: Right now I am not allowed to disclose the name of the parent corporation. This is to protect their brand of Made in USA only. If the new venture is successful, they will "merge" with our company. So on paper, we are separate from them, but they own us. They have invested a lot of money in this new venture, however, the majority of it can only be spent on marketing. I hope you can understand. For now, please treat me as an independent new company. I will give you proper introductions should the parent company see fit, that is to say, I am successful in building this new company, and our relationship is strong and secure. But just to let you know, we primarily focus on pet care goods such as flea and tick protection, dental treats, pet toys, dog kennels, pet beds, and we work with a few pet food company to manufacturer treats. We do not offer many pet accessories, which is why this is a a new product us. In order to test our best interests, the board of directors dec it will be best to enter a market where there is less competition. The best place is animal shelters and rescues, as per our consumer research department suggested. They expect me to source independent with a very small budget compared to marketing. I only wanted to let you know about them because I am sick and tired of companies from China ng me thinking I am a single distributor looking for a one time transaction. By explaining my history and the company's origin and operation model; I hope to be direct and not waste our time. What I want is a mutually beneficial relationship with you. Unlike one time customers, you know we will be ordering every month. This will allow you to calculate better prices from manufacturers. The items that we will ask you to source for us will be done at little to no risk for you. We will be offering the shelters 3 options to choose from Basic, Classic, and Deluxe. Basic: includes set of collar leash and harness, custom design cotton square bandana Classic: Everything in Basic + 1 plush toy, 1 rope tug toy + 1 rope ball + waste bag dispenser & waste bag rolls. Deluxe: Everything in classic + 1 treat bag to hold food for training + 1 training clicker + 1 set of water and food bowls (nonHere is the price range we want for each box with custom packaging (we are assuming boxes will be a one time bulk purchase, shipping not included): Basic: Less than $3 set Classic: Less than $5 set Deluxe: Less than $8.50 set This price range is for 100-500 boxes per month. We hope to get better prices starting from 1,000 sets a month, and even cheaper at 5,000. Finally, we would like a discount for working with you as a long term partner: the longer we work with you the better the discount! I also understand that the most expensive item in the box sets will be the collar, leash, and harness set. However, because each option will have the same type (same design, color, and material) of collar, leash, and harness; I believe that over time it will be much cheaper for you to produce. Right now I know that less than $2.50 is very low (how much I would like the set to cost), especially if we only start with 100 sets, but I want to work with you to come up with a good design and material. Let's try to get it to be good quality, beautiful, and cheap and easy for you to produce. Win-win right? Also the toys you purchase for our box sets will be carefully selected. Think about it, we need to make sure the customers that buy the boxes from the shelters will like the toys enough to buy a more expensive box right? So if you source for us, you will be ordering products that is guaranteed to do well in the American market. Promised best sellers. Otherwise, why would we want it in our box? Finally, the waste bags can be bought in bulk by your company, more than we can afford to purchase at one time, but those are very cheap anyways? We will let you know how many rolls we need in a box, but I hope that we can work a good deal for these. We will be working with a different company to order the boxes and designs, unless you have a manufacturer you have worked with for a long time. We can talk more about this later. I will let you know right now, and tell your boss this: You will be taking a RISK by working with us. What I would like is discounts for orders of 5,000 boxes when I only buy 500. Let me explain why: We are dealing with clients who cannot afford to buy in bulk. To cut costs for them, we need to keep our own overhead low. Normally I would be able to purchase 5,000 boxes, but then I would have to worry about inventory, storage, warehouse, etc. Instead, I would buy 500 boxes a month for 2 months or so, then jump to a lot more boxes. Remember, we have a decent sized network of shelters to and when they buy they will be in a contract to buy enough boxes for 3 or 6 months, and we ship it to them every month. When we buy from you, even if we only buy 500 boxes a month, most of that is for shelters who sign a contract for at least 3 months. We can promise you a set of orders every month for at least 3 to 6 months at a time. There is ZERO reason for us to switch to a different company once we work with you. You already carry all the supplies we need. Would take more time and effort to find another supplier. Your risk is that you are not making as much money selling to us as you would selling to someone who buys 10,000 units. But what we offer in return is the consistency. With us, you do not have to estimate how much products you need. We will not have to risk when sourcing products because you will know how much we will buy. The items in these boxes will not change. In other words, you will not be making as much money in the beginning, but over time it will pay off. Let me know if you wish to continue, and we can talk about specifics like what toys, what bandana, etc. As for the collar leash and harness, you can source them or produce them yourself. But the design is something our project director chose. She has a very good track record of picking the best designs for packaging and items. I trust in her more than I trust myself. Those styles will sell. Finally, I know there is no reason for you to have to chose to work with me. This is a brand new business model that I wish to offer to your company. I have tried it with manufacturers in Americas before, and everything works well. As someone who handled logistics, I know that you will never do something where you will lose money. With us, you will just not be making as much as you would in beginning. I told you before, I am very different from your usual customers. Let me know if you are still interested and we can talk in more detail.
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