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Deep within man dwell those slumbering powers;
powers that would astonish him,
that he never dreamed of possessing;
forces that would revolutionize his life if aroused
and put into action.
-- Orison Swett Marden
Behold, I show you a mystery; We shall not all
sleep, but we shall all be changed, in a moment, in
the twinkling of an eye.
-- Corinthians 15:51
Nothing happens unless first a dream.
-- Carl Sandburg
Wealth is the product of man's capacity to think.
-- Ayn Rand
Somebody should tell us, right at the start of our
lives, that we are dying. Then we might live life to
the limit, every minute of every day. Do it! I say.
Whatever you want to do, do it now! There are only
so many tomorrows.
-- Michael Landon
Inside:
- Introduction
- Tea 4 Free Success
- Advertising Co-op Success
- New Product Success
- Private Label Success
- Re-Order Success
- Looking Ahead to 2003
- Online Presentation
- Growth Management
- Credits
1. Introduction
Looking back on 2002, I am pleased with the buying group's progress. We have successfully added new product lines, grew the buying group, launched the Ad Co-Op, and helped several distributors start their own tea brands. My dream is a reality.
All my life I have been a big dreamer. Tea Connexions had humble beginnings. Four years ago, working from a small 200 square foot office crowded with cases of tea, I was in charge of sales, marketing, finance, shipping, receiving, everything. The products were marketed at trade shows, through mail order, direct response television, Internet sales, gift shops, tea shops. In fact, I identified so many potential marketing channels for the products, that I simply did not know which market to focus on. Hence, the idea of the buying group.
Launching this program has not been easy. Four years of 60 to 80 hour work weeks plus financial stress has definitely taken its toll; I am mentally and physically tired. I push myself because Tea Connexions is not work, it is my passion. Tea Connexions is my life. I am excited and thrilled to have the privilege to work with so many entrepreneurs. I am committed to growing Tea Connexions to its fullest potential because our success is dependent on the success of our members.
The freedom and flexibility that Tea Connexions has given me is satisfying. Mind you it has taken 12 years to get to this point. My father often jokingly says, I have a "Ph.D. in the School of Hard Knocks" because of the many opportunities and businesses I have been involved in. Tea Connexions is my passion because it satisfies two key core needs I always dreamed of fulfilling.
First, Tea Connexions satisfies my desire to educate and empower. At one point in my life, I wanted to be a University Professor. I even enrolled in a Graduate program. But I knew that life had so much more to offer. Though I loved teaching, I knew that I did not want to put my destiny and future prospects of advancement in the hands of my supervisors. Tea Connexions empowers me to show others how to start their own businesses to achieve their financial dreams and goals.
Second, Tea Connexions enables me to involve family in the business. My parents and sisters have provided key moral and financial support. The love, support, and encouragement I receive from my wife, Suruchi, is the reason my dream became a reality. Suruchi is also involved in the business operations. She left for India on September 13th to make decisions on carton colors, packaging, etc. of the new product line. Her presence in India played a major factor in ensuring that the private label orders left India on schedule. I miss her and look forward to reuniting with her. I leave on December 5th, 2002. Suruchi and I depart from India in January, which coincidentally is the month we were married.
Looking ahead to 2003, I am excited. Inside this issue you will learn more about 2002 successes and what we have planned for next year.
Take care. I wish you and your family a Merry Xmas, Happy and Very Prosperous New Year!!!!! :-)
Yours sincerely,
Sanjay Gupta
President/CEO
Tea Connexions
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2. Tea 4 Free Success
Every month Tea Connexions gives away more than $156 worth of gourmet teas beautifully packaged at Tea4Free.Com. To date, nearly US$2500 worth of FREE gourmet teas beautifully packaged have been awarded. Please click here for the list of winners.
Tea4Free is funded and managed by Tea Connexions for the benefit of our distributors. To learn more about why we fund Tea4Free read our first newsletter.
One of the major objectives of Tea4Free is to refer orders to our distributor members. To date, more than 40% of our distributors have received online orders. Over time, I anticipate that this percentage will increase. Consistently marketing Tea4Free creates consumer confidence. Order tracking to date, proves this is the case.
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3. Advertising Co-op Success
The Advertising Co-op was successfully launched in April of this year.
Checks were sent out to Ad Co-op investors at the end of October to account for revenue generated up until the end of September. I am pleased to announce that once the checks are sent for the last quarter (October, November, and December) that our investors will have recouped more than 10% of their initial investment.
The Ad Co-op is a wonderful concept because it enables members of the buying group to profit from the growth of Tea Connexions. Since tea is a consumable, once the initial investment is re-couped the residual income will be an ongoing source of profit and income.
We are planning to offer another Ad Co-op early in 2003. Participation in this program is limited to Distributor members only. If you want to stay informed about the 2003 Ad Co-Op send us an e-mail.
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4. New Product Success
In April, we received 30 new products: 14 new carton teas and 16 new gourmet teas beautifully packaged. To preview the whole line, visit the latest Tea4Free newsletter
These products were test marketed for several months by members of the buying group who used samples to gauge market reaction. Based upon the follow up orders we received, we decided to carry all 30 items, all of which have proven to be very popular.
Many members are currently carrying the new lines of products. For a complete list, visit the latest Tea4Free newsletter.
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5. Private Label Success
The greatest source of satisfaction for Tea Connexions is the fulfillment of Private Label orders.
Since September, more than 10% of our active distributors have invested in creating their own brand. Very exciting indeed because it shows that this program is working. One of our core objectives is to help our members create distinct brands that create customer loyalty.
Branding is extremely important to long term success. According to the Harvard Business Review, entrepreneurs should strive to create their own brand. A brand name instills increased confidence in consumers. Confident consumers tend to be repeat customers. Since tea is a consumable, loyal customers ensure a lifetime of sales and profits.
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6. Re-Order Success
More than 50% of our members are re-ordering product consistently. This proves that the business model is working. It proves that our members are generating positive results through repeat sales and profits.
This is also a clear indication that most members are recovering their initial investment through the sale of the start up inventory we supply. Bottom line, the majority of the members that invest in the program, use the online training, and take action are getting positive results.
The long term viability of this opportunity is based upon re-orders. The fact that more than 50% of our members are re-ordering proves this.
Tea Connexions is a value added supplier of high quality gourmet teas beautifully packaged that markets its products exclusively through buying group members who are able to purchase products at prices below wholesale.
This business model makes sense because we are passing on huge cost savings to our members. Based upon the total re-order volume of the group, we are able to offer 15% or 30% below wholesale costs. This means the gross profit each member generates from the sale of the products is that much greater. Tea Connexions adds further value to the buying group by providing e-commerce services, professionally designed marketing tools, online training, and unlimited phone and e-mail support. We are anxious to help and assist our members any way that we can.
To learn more about this business model visit Leafteabiz or call Ryan Low, toll free: 1-877-leaftea (532-3832).
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7. Looking Ahead to 2003
2002 had many successes, but we also faced some challenges pertaining to the addition of our tea bag line. Tea Connexions will not compromise the quality of the products we offer to our members. When the initial supplier was unable to meet our requirements, I asked our supplier of loose teas to develop a line of tea bags.
The new line we plan to introduce is ideally suited for the food service industry because each tea bag will be individually wrapped. Since this line will be sourced through my existing supplier, with whom I have more than a four year relationship with, I am confident that it will be of a high quality. Working with my existing supplier on this line will also contribute to the ease of private labeling.
Finalizing the tea bag line is my primary objective when I am in India. Other new lines that I plan to finalize include an accessory line; 5 gram loose tea line to simplify the offering of samples to potential customers; and a bulk tea line ideally suited for tea shops.
We are hoping to have the new product lines in place by the end of the first quarter, 2003. My hope is that I will be able to place my purchase order for many of the new lines while I am in India.
New marketing tools are also in the planning stages. This has proven to be a bit of a challenge because we are trying to satisfy the diverse needs and requests of our distributors. Tentatively, we plan to introduce six new catalogs:
- Catalog of just tea bags, ideally suited for the "Tea of the Month" concept we are planning to introduce.
- Loose tea catalog, perfect for marketing to specialty tea establishments and tea connoisseurs.
- Gourmet teas catalog, which includes all loose and bagged teas.
- Gourmet teas beautifully packaged catalog which includes all of the teas in unique containers and ideally suited for gifts.
- All inclusive catalog for members who want to carry all products.
- Tea accessory catalog.
Diverse lines of catalogs gives each member the freedom to choose the product lines they want to focus their marketing efforts on. Ultimately, our goal is to give our members the flexibility and control they want over their business.
We are also planning to introduce new marketing plans. YOMA Tea, our Saskatoon tea distributor, has been testing the Tea Party plan with great success. Ryan Low and Clayton MacDonald are putting together the first draft of the plan which should be posted in the online training in the first quarter.
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8. Online Presentation
Tea Connexions is pleased to introduce an online presentation outlining all details of the opportunity. The presentation consists of 16 distinct sections that provides comprehensive information needed to make a sound business decision.
Our goal is to give interested entrepreneurs access to the information within 24 hours of receiving the "acceptance and agreement" of the "terms of use". Prospective members will then be issued a time sensitive username and password to access the information.
If you would like to gain access to this information, visit Leafteabiz.com.
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9. Growth Management
Tea Connexions experienced significant growth in 2002. Ultimately, our goal is continue to serve existing members with the highest level of service possible.
To effectively manage this and future growth and to better serve our members, we plan to move into a much larger location to accommodate new staff and larger quantities of inventory.
The price of a Distributor Membership will also increase by 50% in the New Year. When the business plan for this idea was created, the fees for a Distributor membership were originally set at $1499 and $500 for the E-Commerce Set-up. However, like many new business concepts, we drastically reduced these fees for marketing reasons. This year, the E-Commerce Set up fee increased to $500 from the reduced price of $150. Next year, we plan to increase the cost of a Distributor membership to $1499 as prescribed in our original business plan. This new pricing structure is essential for two key reasons:
- It empowers Tea Connexions to increase the level of service we offer existing members, who joined at the discounted rates.
- This new pricing structure will have a positive financial impact on the Distributor driven Ad Co-Op.
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10. Credits
The html version of this newsletter and all web sites: Leaf Tea, Tea 4 Free, and Leaf Tea Biz are managed and created by our Chief Web Designer, Joel Grineau.
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