Efcjake
All the awards
I think this just goes to show how far away a company like Kitbag is from understanding our business. They're pleading ignorance over unanticipated levels of demand for products. One of the reasons we took them on the contract was because the club has a record of being terribly out-of-water when these types of decisions had to be made in the past. By taking on a company dedicated to retailing merchandise the hope was the club could leverage their superior expertise and resources for forecasting demand. It's not a simple business forecasting. Though for kitbag to so astronomically fail to meet the level of demand just tells you that they are no better at forecasting sales levels than we were in the past. This deal was all about protecting the club from over-investing in merchandising and retail investments that had serious impacts on our short-term cash-flow. We traded the rights away for the price of less hassle, and a hopefully more consistent revenue stream which wasn't going to hurt our short-term cash flow as much. We have received the constant supply of annual payments, but I wonder how much the club could see generated in greater profits if they simply hired someone who knew what they were doing and paid them to take over the operations. Anyways, the whole argument is a waste of time because we're locked into a 10 year contract with them for buttons.








