1. I like what I see. Is it possible to secure this Dealership without a personal interview?
YES and NO. We feel that it is important to have a face to face meeting prior to making a final commitment. However, if a face to face meeting is not possible we will commit a dealership territory to you based on our telephone conversations and the information you provide on your application. We will schedule a time to meet with you on the day before your orientation. During the meeting we will answer any questions you may have about the program or SMS. After the meeting, and prior to orientation, if you decide not to continue your deposit will be refunded. Of course if you would like to meet us, prior to securing a territory, we invite you to visit with us at our Nashville office by appointment.
2. I would like to be considered for a dealership. What is my next step?
Complete and submit
the
Dealer Application. Upon receipt, we will contact you to answer any questions you may have and walk you through the steps required to secure a Dealership.
3. What is a guaranteed sale and how does it work?
The Dealer sells Tabasco merchandise to the retailer and agrees to exchange or buy it back upon demand. Retailers will buy more of your products when offered on a guaranteed sale. This give you and the retailer the opportunity to sell more product.
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 service these five accounts until you feel comfortable with all aspects of your new business before adding new accounts. Once you are comfortable with operating your business add accounts at a pace that your time will allow you to service. Our
postcard program is an excellent tool to add additional accounts.
6. What is the three year Expansion Program and how does it work?
This program is designed to allow you to expand into new retail accounts with no out-of-pocket expense. During the three year period from the date of the SMS Dealership Agreement SMS will provide $300.00 of free Tabasco merchandise plus a display clock for each new account established in your territory that requires the purchase of a display. Not only do you make instant money every time you open a new account you create a stream on income for as long as you service the account.
Here’s how: You pay $395 for each display. You receive $300 of free Tabasco merchandise of your choice with each display. The retailer pays you $438 for the merchandise placed in the store ($300 X 1.46% [your profit %] = $438). $438-$395=$43. You just expanded into a new location and made $43 instantly! And, your display is now paid for and can be used forever in this location or moved to another location.
Free merchandise is unlimited during the expansion period.
7. What will be covered in my orientation?
Your
orientation will cover information concerning the best types of accounts for the TABASCO© product line, how to secure locations utilizing our postcard program, bookkeeping, guaranteed sales, retail sales, merchandising, pricing, inventory control, and many other subjects related to your business including these FAQ’S.
8. Do I need to have experience working with retailers?
No. However, you may want to start a list of retailers that you feel would be good locations for the Tabasco displays. Bring this list with you to orientation. We will contact retailers on your list.
9. Can I do this part-time?
Yes. Most dealers start part time with the intent on growing their business to a full-time business over a one to three year period.
10. Once I establish my business, can I sell it?
Yes. Your agreement can be transferred to another party. The responsibility to sell is yours, and you would set the asking price. Specialty Marketing Systems 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 upon sale of the business.
11. Can I expand my business anywhere?
You may expand your business to as many retail locations as you choose within your assigned territory. Chain accounts headquartered in a dealer’s area with units in another dealer’s area will be owned by the dealer that secured the account; unless the chain allows local vendors to service and invoice their locations. In that case the dealer that owns the area where the chain's units are located would service the accounts. You may sell outside of your territory at festivals, street fairs, etc. with permission from SMS.
12. Do I have to incorporate?
No. Most dealers set up a LLC or operate as a sole proprietor. You may use your name D.B.A. (doing business as) Specialty Marketing Systems or whatever you would like to name your company. This will be covered during orientation.
13. Do I charge sales tax?
No. However, you may be required to collect a sales tax if you sell your products retail at festivals, Chili cook offs, etc.
14. How will I know which products to order?
Your initial order of product for your first five locations will be selected from the top 50 selling Tabasco items. Our staff will assist you with future orders and inventory needs.The fastest selling items from your first five retail locations will be a factor in your re-orders of product. SMS will keep you updated with the top 50 sellers and higher profit items.
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.What happens if I have products that don't sell?
This doesn't happen. 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.
17. 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.
18. 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 clock sign. (TABASCO© lighted sign uses standard 120 volt wall outlet). Displays will not be required in locations that carry just a few items such as convenience stores and gift shops.
19. TABASCO© pepper sauces are already sold in grocery stores; Can I service those accounts?
TABASCO® sauces have been in retail groceries for well over 100 years, and are serviced by food brokers. The SMS Tabasco Dealer program is a separate program from Tabasco’s food broker program. SMS developed the DEALER program with the McIlhenny Company to fill a void in the market place that the food brokers do not service; such as, Gourmet Food shops, Butcher shops, Specialty Food and Grocery stores, Convenience stores, Gift shops, Festivals, and hundreds 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. Major Grocery Stores and restaurants are not our main focus – we are specialty reps. However, SMS DEALERS can sell all TABASCO® items (including the five items that food brokers sell) in your retail shops. SMS DEALERS can service grocery stores that already carry Tabasco products with the entire Tabasco specialty line except the red and green (jalapeño) pepper sauce. SMS DEALERS focus should be on the specialty gift and food items the local brokers do not carry. See our
Tabasco products catalog to view the dozens of items available to you that food brokers do not sell.
Retailers interested in the TABASCO® brand specialty merchandise are being referred to Specialty Marketing by the McIlhenny Company to be serviced by SMS DEALERS. Retailers are very receptive to buying merchandise that offers a guaranteed sale; (See question 6) especially with a product line as well recognized as TABASCO®.
Also remember, Specialty Marketing Systems is the only company authorized by the McIlhenny Company to offer this program. The Specialty Marketing DEALER program has been offered since 1996 and is successful because of the added service level provided retailers.
20. If food brokers carry the five main Tabasco products, why don’t they carry the rest of the Tabasco product line?
Two reasons – First, they cannot carry the gift line – The McIlhenny company won’t let them. Second, brokers are always limited in what they are willing to carry and promote. Remember, they carry more than just Tabasco products (sometimes hundreds) of other manufacturers’ products. They simply cannot handle all of any one manufacturer’s line – it would not be feasible.
Because we can focus on the entire Tabasco line, (and only Tabasco) we can merchandise it better and support specialty stores far more consistently than a broker ever could; and, we don’t have to worry about other product lines like a broker does. McIlhenny knows this, and this is why they have given Specialty Marketing the entire line.
21. Can I be competitive with my Tabasco products in all retail locations?
Of course. We cover all pricing strategies and scenarios at Orientation. We offer an incredible product offering (that no one else can carry) at very competitive price points.
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. Please remember that we cannot offer the TABASCO® regular or green (jalapeño) sauces in Major Grocery stores. All other Tabasco products can be offered to grocery stores and all other retailers.
23. What do I have to do to maintain my DEALER status?
You will maintain your status as a dealer as long as you comply with the terms of the SMS dealership agreement. We place only one SMS DEALER in each territory.
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 Dealer 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 territory defined?
Demographics, population, growth and the number of potential retail locations, and your input 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 territory will be part of your SMS Dealership Agreement.
26. How do I pay out my $17,800 investment?
SMS will send you an SMS DEALERSHIP agreement for your review and approval. Upon your review and approval you will sign and return it along with a $1,000 deposit. Payment of the deposit will secure the territory outlined in your agreement. The $16,800 balance is due on the orientation date indicated in your agreement. All funds payable by personal or cashiers check to Specialty Marketing Systems, LLC 2400 Crestmoor Road, Nashville, TN 37215. After our meeting on the day before orientation, if you decide the business is not for you. Your deposit will be refunded.
27. What do I get with the Dealership?
- Access to wholesale licensed Tabasco® merchandise through Specialty Marketing Systems.
- Assigned territory to service retailers with Tabasco products (one SMS DEALER per territory).
- 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 territory.
- Five displays (with lighted TABASCO® clock sign). $2,350 value.
- $2,500 of start-up inventory.
- 1000 business cards.
- Three years of free merchandise under the expansion program. See question 6.
- Retail locations expansion support utilizing our postcard program and referrals.
- Telephone, e-mail, and text support.
- SMS business forms, product updates, etc, and software – downloadable from SMS web site.
- 24 hour On-line merchandise ordering.
- Free Color Product Brochures and Postcards.
- All of this support comes with your Dealership. There are no additional fees, commissions, royalties or charges for phone time or consultations.