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Have been in this company for a few weeks so have been lurking on thread. IMHO this is the deal. I am looking at a package for SAM'S CHOICE product and on the package it states:" Marketed exclusively by WAL-MART Stores, Inc. Wal-Mart has marketing division, which was called buying office in years past, a distribution division, and a trucking division, communications division, these are all profit centers. So Marketing will negoiate for Wal-Mart and Sam's Wholesale Clubs. Keep in mind that Wal-Mart will put the real squeeze on a vendor so this will be low margin business for LTGL but TONS of revenues. I have also been around when Wal-Mart cancels a order and it is not a pretty picture, so keep that in mind. This is how I see this working out long term. First Wal-Mart uses LTGL packaging, pricing etc., if the product is checking out really well, it will become SAM'S CHOICE label or Wal-Mart buys it direct from LTGL suppliers. Now the good side is that Wal-Mart can tell you by the hour how something is selling in stores which will be good for LTGL in working with their suppliers and projecting needs. Caution!!!! Don't be overwelhmed by size of opening orders, it takes alot to fill this pipeline, the reorders will tell the story. Sorry this got so long, everyone enjoy the week end. |
