RE: Sales growth6 Oct 2019 17:46
So firstly Nuba, thanks for bothering to reply and for taking the negative view about the companies prospects. Before I continue I am going to assume you do not hold shares (because you are unsure of the prospects going forward) but you are considering investing (because you have noticed the steep SP drop and sense an opportunity). Is that correct? If not, why post on the BB.
You are right that initial sales are very low. First distribution of Chill stock must have been quite low and the products used to make those packs were only just being sourced. Packaging and process was surely still at an early stage. Next, although websites were developed, after a brief period of online sales working, Paypal pulled out as a provider for online payments and the websites are only now just working. This will have impacted online sales. The new payment provider Paytriot is now working to my knowledge and as product awareness rise so should sales, but they do have a long way to go.
Nick has clearly stated he is targeting much wider distribution and prioritising Chill. I will want him to keep updating us with any new deals, but having the product on sale in hundreds of shops and stores requires the kind of wholesale distribution we have just seen announced via Mr Checkout. No distribution such as this is present in those £36,000 sales, so that number has no meaning in respect of the next 6, 9 or 12 months.
We need product in 500 stores, a 1000 stores... etc The US is a big place after all. He needs to make and sell A LOT of Chill Smokes and Chews and get them out to hundreds and hundreds of outlets via Mr Checkout or similar. he needs to monitor sales and customer feedback and adapt the product accordingly. He has alluded to this as being his intention. He is a finance guy. He will 'get' the numbers.....
Once this scales up, your pessimism may look misplaced.
But you are right in that we do not know yet...... I am posting what might be possible. If 1000 stores sold $40 of our product a day and we made $15 from it that would be how much per month......yes not so crap is it. And hey, it could be way getter than that.
Using the cancellation of plans to upscale the outdoor crop as a negative is misplaced too. D14mond has done this on twitter because he is upset his placing prediction has fallen through. Nick has explained he want to be prudent with resources and concentrate on the high-margin areas of the business. Seeds and products sales. this is where the big profits lie.
The update made me MUCH happier than I had been before, not just for the logistical reasons explained above ( I am confident the seed sales tactic will work and $2-3 million revenue is doable during next spring, not all by year end though) but because it was the first RNS I can remember where we received exactly what we had been promised. a detailed numeric update with clear outline of forward plans and well explained reasoning for any plan changes.
So, in short, i don't