Q1. How does the commission base work for the Barbershop, distributors and Sales Technician?
A1. If you sell TBBBC as a Distributor at the full retail price of $15,700, you will receive 10% commission. As a Sales Technician, for the TBBBC inventory that’s not purchased by you, you will receive a 10% commission on restocking TBBBC. There is no commission set-up for the Barbershop. However, if the barbershop leases the TBBBC, they would get the profit from selling retail – which is a 45% markup above their cost.
Q2. What kind of support from BBDI would we receive?
A2. The support comes from Black Box Distribution Inc. (BBDI). We have a national advertising campaign for every area of distribution (example when a barbershop gets a TBBBC, BBDI will buy local radio advertising, T-shirts, hats, flyers etc., in that particular area and ZIP Code to get the word out about the new TBBBC location). Being that BBDI is a member of BOBSA, they will also help get the word out by writing an article in BOBSA’s newsletter on that particular barbershop, and by utilizing all BOBSAâ€™s social media platforms.
Q3. What will be the average cost of shipment for the products, or is that already added to the cost of goods at the wholesale price?
A3. No, shipping is not included in the wholesale price. Shipment costs of very small quantities based on the weight, will run between $100 to $150, and all shipments come from Chicago.
Q4. What percentage do Distributors of the machine make on the advertising sales?
A4. TBBBC will pay 15% to 25% commission sold by you for advertising on the TBBBC topper in your geographic area.
Q5. What do you project to be the average percentage total of sales per product line in the machine that a barber/salon shop can make? And what is the difference in profit margins between the options of renting/leasing/licensing vs. allowing BBDI and/or its Distributors to host the machines in their shops?
A5. Total annual sales are projected to be $2,290.95 for the shop, this is based on a 45% margin (Examples: Jamaican – your cost is $3.75, the store cost is $4.82, and retail cost is $6.99). (Total annual sales for Distributor $1,215.36 Example: Andis Trimmer – your cost is $35.94, the store cost is $46.72, and retail cost is $67.75). And if a barbershop just wants to host the machine, they get 10% commission on sales. With the TBBBC, your markup cost of 30% from items sold to the shop, and the retail is of 45% markup for shop sales.
Q6. How will the company maintain/service the machines within the distribution channels? Does BBDI currently have relationships with service providers in the target areas that it estimates its first year of distribution of the machines?
A6. Yes, we have set up distribution warehouse locations around the country using BOBSA’s network of sources. The first warehouse is located in Macon, Georgia; the second in Cleveland, Ohio; and the third in Southern California. As we launch machines across the country, we will add more satellite distribution warehouses.