We are making changes, including reducing consultant for the EU market due to 11ts. Hardy, Adam, and Sabine + Antoine from December. Jake needs salary upgrade and agreement has to be decided. We add market strategy here as the US proposed own warehouse set-up relates to staff costs.
- Higher Monthly FeeThe Consultant shall receive a monthly consulting fee of USD $10,000, payable on the first of each month.
- Bonus Scheme - Sales CommissionThe Consultant shall be eligible for performance-based bonuses according to the following guidelines:
Annual Sales Target Bonus:- 5% commission on net sales above $1 million annually.
- Additional 2% commission on new major partnerships secured (e.g., governing bodies, nationwide retail chains, or exclusive licensing deals).
- Upon achieving predefined milestones (e.g., new national governing body partnerships, distributor launches), a one-time performance bonus of $[X] each.
- Stock OptionsTo align long-term interests, the Company will grant the Consultant share options equivalent to [1–2]% of the Company’s equity, vested over 3 years, with a 12-month cliff. Vesting will accelerate in the event of a sale, merger, or change of control.
Current average Monthly fixed 3PL costs = $7950
- Office Space & WarehousingWe propose to get our own warehousing space and set up printing facility and office. We have found a very good option 15min. from Jake's house which included loading docks for containers/trucks. It is approx. 800 Sqm. which is enough to grow over time. Price is $8000 per month for the rent plus expenses. Below you will see the total estimations.
- Additional Staff & PrintingFor this to work, we need one warehouse manager. We can start with Jake's best friend Chris, who is retiring early from the police and do not need full salary. He has 10 years experience running warehouse operations and is very good in admin so he can support Jake as well. It is a win-win. Down the line we need one more person and from time to time, perhaps some on-demand, cheep, labour.
- Pros & Cons
Pros
Adding office and working space
Better stock managment
Working with a more updated system
No more issues with inventory spread out
Save on current storage expenses
Have a location for returns
Could assemble goals without costs.
Could resell undamaged returned goods
Cons
Printing troubles initially
Cost of moving existing stock
Would need to set up a shipping account
- Notes & Ideas
We can hold off on printing for a little while and just buy the heat press. We could then order the prints used to print and just press it ourselves. We then can buy a printer later down the line.
We also could save a lot of money by bringing in a heat press from china in one of our containers of goods. The cost would be about 1/3 of the cost that way.
By printing ourselves we can save money and increase profits on the printing process as well as control the speed of which we complete orders.
We also could better manage stock by maintaining minimum stock thresholds and once items fall below we can order containers of products.
