TSIG.com TIGI (formerly TSIG) Message Board

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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG)

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To: johngmack who wrote (33292)	8/6/1999 7:34:00 PM
From: REW	Read Replies (1) of 44908

John This is the old plan. The fulfillment of CDs would be designed to cover the expensive top 100. By reducing the cost of the CDs by going directly to the wholesaler, the cost would be reduced to allow TSIG to break even or make money on the top 100 CDs. The thought or calculation was that this would possibly raise the profit on CD sales from $1 to $1.50. It would also drop the desired 30(top)/70(old) split to maintain the $1 margin. The fulfillment house would be in the same building as the PhotoCard combining the overhead. The CDs could be purchased by the case as needed since the wharehouse is within an hours drive by van. I don't see any problem handling this internally as it only involves the top 100 and shelving the inventory would be easily accomplished. It should also be relatively easy to maintain a timely shipping schedule. I like the idea of raising the profit margin on CD sales by approx 50%. It is also possible to sign a fulfillment agreement with a different supplier if one is found that will work cheaper. Bob

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