Distributor Opportunities

Thank you for your interest in the

Distributorship Program

Simply Office Supplies has a unique approach to a common product supply method. What we offer is a protected territory to a small locally owned and operated distributor giving them the power of a large purchasing group and the backup of efficient centralized ordering and customer service. Our Web site and ordering system has been custom developed by us and offers flexibility that no other supplier can offer or come close to providing.

• Next day delivery on a 50,000 product lines
• Competitively priced catalog
• Very low overhead and administration
• Easy product return
• Backup of a highly automated efficient system.

Basically we share the burden of the administration over many distributors and equally benefit from purchasing power and much lower overhead all backed up with marketing and internet presence that rivals the biggest players.

Retail space for many existing retailers is 1/3 of the overhead
1/3 is administration and the last 1/3 is delivery, sales and profit

We offer 2/3 of the GP for only 1/3 of the effort

What you will need to start is a drop off point for the product a van and an internet connection, computer and printer. As you grow and add more vans and drivers a larger distribution warehouse will be necessary. Our growth has been primarily attributed to word of mouth as well as visibility in the community our vans are very distinctive but sales and marketing are also required so that customers are aware of the service you offer.

Our internet portal is being upgraded daily by our in house network department. This resource rivals the large box and internet companies for ease of use as well as product lookup and history. To login use admin@demo.com and the password is demo to view items purchased reprint invoices, statements and even download in excel format.

All orders are taken centrally by our head office by phone fax and internet. The distributors print off the delivery list for the day & match it with the orders and deliver them. We use part-time semi retired drivers that work 4-5 hours a day so deliveries are before 12pm.

All payments and processing (returns and credits) are handled by HQ. The distributor receives weekly reimbursement for the product sold less the cost of the items and the 1/3 administration fee

For example (not actual or guaranteed)

If you delivered $150,000 worth of product the cost was $117,000
the GP would be $33,000 and 2/3 of that is $22,000 (or your cut)

Rent on WH $1,500 / month
3 Drivers 4 hours day $5,000
Overhead (vans) gas and depreciation $5,000
Internet Computer and cell phone costs $1,000
Marketing and advertising $2,000

$7500 / Month

Because we have such large purchasing power we can achieve an average 34% GM and still be very competitive. We can then pass this on to the distributors and all receive a benefit.

To equal our current purchasing discounts, an individual dealer would have to sell over $2m and would incur the extra overhead of administration, additional staff and office space.

Sales in Billings to December 31st 2009 (actual sales to 31st Dec 2009)

We intend to expand this on a national level. Distributors will be offered the full support of our training and expertise. It is in our interest to see you succeed and exceed expectations so that the following generation of distributors can build on this foundation.

Start up costs and considerations
(Simply Office Supplies is willing to offer financing if required to the successful applicants.)
Distributorship fee $15,000
Van (Used if fine) $13,000
Ability to support self during first 6 months or until profitable.
W-House when needed

Cash flow requirement As the product is purchased weekly and the customers average 25 days credit the distributor is responsible for carrying the line of credit as well as any bad debt. It is at the discretion of the distributor whether to give credit to the customers.

Our average settlement is 25 days

To proceed further please provide copies of
1) Financial statement showing available funds.
2) Short Resume demonstrating reverent experience and the ability to manage a small fast growing business.
3) 2 professional references

Thank you once again for your interest

Charles Schwier CFO
Simply Office Supplies
Distributor Dept
119 North 7th Ave
Bozeman MT
59715

charles@simplyofficesupplies.com