During the corresponding time, Rocky Mountain High Brands Inc recorded a revenue increase by 1730.61 % year on year, sequentially revenue grew by 490.15 %. While revenue at the Rocky Mountain High Brands Inc 's corporate clients
Rocky Mountain High Brands Inc's Comment on Sales, Marketing and Customers
Direct Selling
We utilize direct sales to retailers which eliminates the delays and additional
expense of a standard distribution channel. In this way we are better able to
preserve more revenue, and protect capital under the control of the company. Direct
selling to certain segments supports our marketing plan that has identified, researched
and segmented certain final customers.
Historically, our only outlet for direct selling has been two different online
sales platforms and has accounted for approximately 7% of our sales.
Wholesale
Another sales channel includes wholesale distribution. This choice is designed
for our potential customers who are widely dispersed. Wholesale distribution leaves
the selling to wholesalers and retailers specialized in retail sales, which enables
us to focus on manufacturing needs.
Beverage Broker
Our beverage brokers develop local, regional, and national product campaigns with
attention to long-term sustainable success. They assist in matching brands with
the needs of an evolving market. Scheduling appointments, making presentations,
securing product approval, and shelf resets, have added greatly to the time line
from ship to shelf, making the role of the beverage broker all the more important.
Beverage brokers represent a cost-efficient method of doing business for our drink
brands. A commission-based beverage broker is a variable cost directly tied to
the volume sold.
We have recently entered into an agreement with Function Beverage LLC, which is
included as an Exhibit to this filing. In Exhibit A of the agreement, Function
Brands has identified a number of national chains to whom they will represent
our product.
Historically, sales under this sales channel have been zero. Since the Company
recently entered into an agreement with Function Beverage, we anticipate that
this will become a significant sales channel for our products.
Beverage Broker/Distributor
The broker/distributor relationship adds credibility for new brands entering the
market. Sales efforts consist of procuring new channels of distribution and distributor
support. Beverage brokers/distributors provide a service to both RMHB and customers
by selling to chain wholesalers, independent wholesalers, and retail stores. Beverage
brokers and distributors often provide avenues to significantly decrease overhead
costs. Wholesalers and retailers also benefit by working with one broker/distributor
rather than with many manufacturers' representatives. Historically, 85% of our
sales fall into this category.