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FAQ'S
1. I like what I see. Is it possible to secure this program without a personal interview?
YES and NO. We feel that it is important to have a face to face meeting prior to either party making a final commitment. So, we do require a personal meeting prior to your orientation. However, in order for you to secure your area, save time and expense, and expedite the process, we will commit to you based on the information you provide us in your application. We will schedule a time to meet with you at our office when you come for orientation. During the meeting we get to know each other better and it gives you the option to make a final decision on whether our program is right for you. After the meeting, and prior to orientation, if either party decides not to continue, your deposit will be refunded. If you would like to meet us, prior to securing your area, we invite you to visit with us at our Nashville office by appointment only.
2. I would like to be considered for my area. What is my next step?
Complete and submit the Request for additional information form. Upon receipt, we will contact you to discuss the opportunity in more detail.
3. What is a consignment program and how does it work?
In a consignment program, the Independent Representative places merchandise in the retailer's store at no initial cost to the retailer. The retailer pays you each time you restock your display (see Consignment Agreement). The retailer and Representative both find this arrangement very attractive and benefit by utilizing consignment.
4. What is my profit potential?
Your gross profit on each item is 46% above your cost. Your costs of doing business must be deducted to arrive at your net profit. Click here to view our Click here to view examples. >
5. How quickly should I grow my business by taking on new accounts?
SMS will provide you with five start-up accounts after you receive your displays and initial order of merchandise. We suggest that you set up these five accounts ASAP upon receiving them and after your training in Nashville. Service these first accounts until you feel comfortable with all aspects of your new business before adding new accounts. Once you are comfortable with operating your business, then, you may utilize our postcard program and several other options to add accounts at a pace that your time allows you to service and that fits your own personal expansion and monetary goals.
6. What is the Expansion Program and how does it work? And why am I required to make an investment?
You are making a personal financial commitment if you decide to start this business. SMS makes commitments also, not only to you, but to retailers in your area. Your financial commitment tells us that you are serious about this business and that you will be there to service the retailers that we commit to. Your initial investment of $16,800 will be returned to you over time by providing you with $2,500 of start up merchandise, five displays and $12,000 of free merchandise as your business expands. SMS will provide $300.00 of free Tabasco merchandise for each new account established in your area that requires the purchase of a display. Free merchandise is Limited to $12,000.
7. What will be covered in my orientation?
Your orientation will cover information cover information concerning the best types of accounts for the TABASCO© product line, how to secure locations utilizing our postcard program, bookkeeping, consignment, retail sales, merchandising, pricing, inventory control, and many other subjects related to your business.
8. May I secure locations before I receive my merchandise?
We recommend you do NOT secure locations before your orientation in Nashville. However, you may want to start a list of retailers and addresses that you feel would be good locations for your displays.
9. Can I do this part-time?
Yes.
10. Once I establish my business, can I sell it?
Yes. The responsibility to sell is yours, and Specialty Marketing Systems, Inc. can offer you advice, as well as take calls from prospects, and answer pertinent questions. You will be required to pay SMS a $1,500 transfer fee.
11. Can I expand my business anywhere?
You may expand your business to as many retail locations as you choose within your assigned area. Accounts outside of assigned area may be allowed upon approval by SMS.
12. Do I have to incorporate?
No. You operate as an independent contractor. You may use your name D.B.A. (doing business as) whatever you want to name your company. A local small business accountant should be able to answer any questions you may have.
13. Do I charge sales tax?
No. Your retail accounts charge sales tax to their customers. However, you will need a tax exempt number available at your State web site. If you sell retail at festivals, Chili cook offs, etc. you may be required to collect a sales tax.
14. How will I know what to order?
Top-selling and higher profit items will be highlighted on the online order form. And our staff is always available to help you with order and inventory needs.
15. What is the shelf life of the food products?
Over one year, and no special handling or temperature requirements are necessary. (Prevent freezing.)
16. Who pays for items that are stolen (or missing) from displays?
The retailer. See Consignment Agreement.
17.What happens if I have products that don't sell?
This should not happen if the proper selection of merchandise is placed at the retailer. However, some products will sell better at some locations than others. Therefore, if a product is not selling at one location, replace it with something else and move that item to locations where it is selling. Product selection for locations will be covered during orientation and assistance with matching product with locations is always available on our web site and from our helpline.
18. Is Specialty Marketing Systems, LLC. part of the McIlhenny Company?
No. Specialty Marketing Systems, LLC. is an authorized manufacturer’s representative of TABASCO® brand products but not an agent of or otherwise affiliated with the McIlhenny Company.
19. How large is the wrought iron display rack?
24" wide, 14" deep, 72" height to top shelf, and 82" to top of the TABASCO© lighted sign. (TABASCO© lighted sign uses standard 120 volt wall outlet. Displays will not be required in locations limited to a few items such as convenience stores.
20. What is the sales arrangement concerning TABASCO© products in my area; can a retailer only get TABASCO© merchandise from me?
TABASCO® sauces have been in retail groceries for well over 100 years. The ISR program was started to fill a void in the market place that the food brokers do not service; such as, Gourmet Food shops, Butcher shops, Specialty Food stores, Convenience stores, Gift shops, Festivals, and a number of other retailers. The food brokers that represent the McIlhenny Company are responsible for selling the five TABASCO® brand pepper sauces and Bloody Mary mixes in grocery stores and restaurants. You can sell these five items that food brokers sell. However, grocery stores and restaurants are not your primary market for these five pepper sauce items. You can, however, sell your other food and gift items in these stores. See our Tabasco products catalog to view the dozens of items available to you that food brokers do not sell.

The brokers that represent the McIlhenny Company, on the other hand, do not have access to the TABASCO® specialty merchandise (with exception of some of the food items) – remember, their focus is on the major food products (pepper sauces and Bloody Mary mixes). Your focus is on the entire line of specialty products – particularly gift items – this is where you make most of your profit. One of our better selling items is the Family of Flavors five item pepper sauce gift box. It sells extremely well in restaurants.

Retailers interested in the TABASCO® brand specialty merchandise are being referred to Specialty Marketing by the McIlhenny Company to be serviced by ISR’S. Retailers are very receptive to selling merchandise on consignment; especially with a product line as well recognized as TABASCO®. A retailer may, however, purchase TABASCO merchandise directly from the McIlhenny Company if they choose not to use consignment or if the ISR chooses not to service the account.

Also remember, no one else (including the McIlhenny Company) offers this program. The Specialty Marketing program has been offered since 1996 and is successful because of the added service level provided retailers.

21. Will I be allowed to sell the same TABASCO© products I see in the grocery stores (including TABASCO© Sauce) from my displays?
Yes, plus around 200 other specialty Tabasco food and gift items.
22. What types of retail locations are right for the TABASCO© specialty products?
The McIlhenny Company has developed a line of products that is both high quality and versatile. There are only a few retailers that would be considered inappropriate for TABASCO products. From exclusive gift stores to convenience stores, there are products for every venue. The beauty of the TABASCO product line is that it not only has food, it is about food. This means there are numerous products that are at home in many different venues, while offering the excitement of the TABASCO name.
23. What do I have to do to maintain my Independent Specialty Representative status?
You will maintain your status as an Independent Specialty Representative as long as you comply with the terms of the ISR agreement, actively service your retail accounts, and, after two years from date of your agreement; you will be required to meet minimum annual orders for merchandise of $10,000 per year and operate a minimum of 20 retail display or non display accounts.
24. Will I need a computer, special vehicle, office, or storage facility?
A computer will make your work a lot easier. However, You can operate your business without one by utilizing hard copies of our business forms and calling or faxing your orders. A special vehicle, office or storage is not required to start. We start each new Rep as a one person business operated from your home using your existing vehicle. As your business grows you may want to rent a small storage unit and upgrade your vehicle to a van or SUV if you don't already have one.
25. How is my area defined?
Demographics, population, growth and the number of potential retail locations are all used in determining area size. Our goal is to offer an area large enough to be financially successful, but not overwhelming. A legal description of your area will be part of your final Agreement.
26. How do I pay out my $16,800 investment?
You will submit a $1,000 deposit along with your signed ISR Agreement. Payment of the deposit will secure your area. The $15,800 balance is due on the orientation date indicated in your agreement. All funds payable by personal or cashiers check only to Specialty Marketing Systems, LLC 2400 Crestmoor Road, Nashville, TN 37215. Initial orders will be placed the week after representative attends orientation in Nashville.
27. What do I get for my investment?
  • Access to licensed Tabasco® merchandise through Specialty Marketing Systems.
  • Assigned area to service retailers with Tabasco products (one ISR per area).
  • Orientation in Nashville, TN.
  • Lodging for two nights in Nashville during orientation.
  • Operations and Orientation Manual.
  • Five start up retail accounts located in your assigned area.
  • Five displays (with lighted TABASCO® sign). $2,350 value.
  • $2,500 of start-up inventory.
  • $12,000 free merchandise under the expansion program. See question 5.
  • Telephone and e-mail support.
  • SMS business forms and software – downloadable from web site.
  • 24 hour On-line merchandise ordering.
  • Color Product Brochures and Postcards.
  • Location expansion support utilizing our postcard program.
  • All of this support comes with your initial investment. There are no additional fees, commissions, royalties or charges for phone time or consultations.

The TABASCO® marks, bottle and label designs are registered trademarks and service marks exclusively of
the McIlhenny Company, Avery Island, LA 70513.
Specialty Marketing Systems, Inc. is an authorized manufacturers representative of TABASCO® brand products but not an agent of
or otherwise affiliated with the McIlhenny Company. Specialty Marketing Systems, Inc. is not authorized to act on behalf of the McIlhenny Company.

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