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Sanjay's Blog


Tea Connexions News: Issue #5 - Sept. 2003
A New Product From Tea Connexions: Tea Biz In A Box

I am pleased to announce the introduction of a brand new product-Tea Biz In A Box (hereinafter referred to as "TBIB")-designed to put revenue in the hands of Tea Connexions' Distributor Members.

Purpose

To create a steady stream of customers for Distributor Members.

Concept

TBIB is a tea club that offers the purchaser lifetime discounts of 20% to 50% off of the suggested retail of Tea Connexions products. It is referred to as "Tea Biz In A Box" because participants in this program can use the discounts to re-sell the products and earn profits. The suggested fee to join the club is $195. Included with this fee is a TBIB kit worth more than $350.

This program will be offered exclusively through Distributor members in the buying group. ****This means that each and every kit must be sold through an existing Distributor member of the buying group.**** It also means that the re-sale of all products to TBIB club members must be purchased from a Distributor member.

Distributor members will earn profits through three distinct sales channels:

1. From the initial sale of TBIB kits.

2. Through repeat sales of products to TBIB participants.

3. Through repeat sales of marketing materials to TBIB participants that require sales tools.

Definition of Wholesale Customer

For the purpose of this program, a wholesale customer is defined as someone who purchases the product from a Distributor at Tea Connexions suggested retail prices and re-sells the product to the end consumer. Re-sale of the product will earn profits for the TBIB participant because they can realize discounts of 20 to 50% off of the Tea Connexions suggested retail prices.

Generally speaking, wholesale customers tend to be better customers because they are re-selling the products, earning profits, and re-investing the profits.

End result: repeat business and repeat profits for Distributor Members that service TBIB purchasers.

Potential Purchasers of this Program

1. Wholesale Customers. This program is ideally suited for entrepreneurs that want to re-sell the product at retail costs to friends, family, or through retail outlets such as local mall kiosks, flea markets, tea parties, fund raisers, or their own gift, health, or tea shop.

2. Tea Lovers. This program is designed for consumers that just want to belong to the TBIB Club that offers a lifetime discount of 20 to 50% off of their retail purchases.

What the Purchaser Receives

As mentioned earlier, the cost to join the club is a fee of $195 + s/h. For this fee, the purchaser will receive the TBIB kit that has a Total Retail Value of $353.35. Included with the kit are the following items:

-26 gourmet teas beautifully packaged (detailed below) products with a suggested retail of $275.35

-50 Tea...the beverage of choice brochures with a retail value of $20.50

-50 Gourmet teas...beautifully packaged catalogs with a retail value of $32.50

-$25 Training Manual that will give the investor tea education and guidance on how to market the products

-Lifetime savings of 20% to 50% off of the suggested retail prices of our complete tea range that they must purchase from a Distributor member.

-A comprehensive retail price list of all the products.

Product Included with the Kit

-One EACH of the Core 15 in the Gourmet teas....beautifully packaged catalog: B1001, W4005, W4001, W4004, DT201, DT203, DT205, DT207, AT101, HT401, HT403, and NT601

-One EACH of Second Flush Carton (SF02), First Flush Carton (FF02), High Elevation Assam Carton (AT04), Darjeeling Organic Green Carton (GT01), Gun Powder Green Darjeeling (GT02), Masala Tea Carton (FT01), Rose Tea Carton (FT04), Earl Grey Tea Carton (FT05), Cardamom Tea Carton (FT06), Apple Tea Carton (FT07A), and Black Currant Tea Carton (FT07B)

Clearly, there is value in this program, considering that the investment is only $195. An important factor to point out is the TBIB kit includes 26 tea products with a suggested retail of $275.35.

Major Benefit For TBIB Purchaser: Discounted Rates

One of the main benefits a TBIB purchaser gains from this program is lifetime discounts of 20% to 50% off of the suggested retail prices. The discount realized is dependent on the amount of product purchased at suggested retail cost from their nearest Distributor. By purchasing more from their nearest Distributor, they will save more and ultimately profit more from the re-sale of the product.

How The Discount Program Works

1. Purchases between $5 and $199 qualify for a discount of 20%. Potential savings on a $199 retail order placed through a Distributor is $39.80.

2. Purchases between $200 and $799 qualify for a discount of 30%. Potential savings on a $799 retail order placed through a Distributor is $239.70.

3. Purchases between $800 and $1199 qualify for a discount of 40%. Potential savings on a $1199 retail order placed through a Distributor is $479.60.

4. Purchases of $1200 or more qualify for a discount of 50%. Potential savings on a $1200 retail order placed through a Distributor is $600.

Clearly, someone that participates in this program and is serious about building a tea business, can make money.

It is also important to note that this discount program means a novice investor can start building their business small, and build up to higher volumes as their customer base increases. Senior, more experienced business professionals, will most likely purchase larger quantities to experience greater discounts.

Please note, TBIB customers do not have to purchase products in case quantities. Since they are purchasing the products at discounts below suggested retail costs, they can order any quantities they want from Distributors that choose to participate in this program. In light of this fact, Tea Connexions will be reducing the minimum order on Tea Packs from 75 units to only 50 units.

Risk For Purchaser of TBIB

None. Purchaser is risking nothing because 26 gourmet teas beautifully packaged products with a suggested retail of $275.35 are included with the TBIB kit. Since the cost is only $195 plus s/h, the Purchaser is realizing an immediate savings of nearly 30%. As a bonus, the purchaser is given the opportunity to earn a part time or full time income through the discounts they receive on subsequent purchases. Besides the tea products included with the kit, the purchaser also receives 100 sales tools and a training manual that gives them tea education and basic marketing guidance on how to sell the products.

Distributor Benefits

1. No Inventory Requirements of TBIB Kits: Distributors do not have to carry TBIB in stock. TBIB is designed as a drop ship product. Distributors that want to carry TBIB in stock for their own local marketing efforts may purchase them in quantities of five (5) at discounted rates.

2. Cash Flow: Each kit sold will generate a minimum of $35 in revenue for the Distributor that the kit is sold through. This program will be tracked using an affiliate program. This means that when a potential purchaser decides to invest in the program, they must choose their nearest Distributor and click on the affiliate link.

3. Repeat Sales and Profits on Tea Products: All TBIB customers must re-order their products from their nearest Distributor, which will most likely be the Distributor that sold them the kit in the first place. There is great incentive for customers to re-purchase product because of the guaranteed discounts of 20 to 50% below suggested retail prices that must be offered on all Tea Connexions' products by Distributors that choose to participate in this program. Distributors will earn significant revenues because their costs are 30% below the suggested wholesale rates. For instance, let's say a customer just wanted to purchase one (1) Sheesham container at the suggested retail of $21.60. If the person was a TBIB participant, they would automatically qualify for a 20% discount (a savings of $4.32), meaning their cost would only be $17.28 ($21.60 minus $4.32). And since Distributor cost on this piece is only $7.56, the Distributor would still earn a significant profit.

4. Repeat Sales and Profits on Marketing and Sales Tools: TBIB customers that want to earn profits from the re-sale of the products will be provided with 100 marketing tools in their initial kit. When these run out, the TBIB customer will need to re-purchase these items from their nearest Distributor at the prescribed minimums.

Marketing and Promotion

Here are some of the actions Tea Connexions will be taking to promote the program, along with actions that Distributors that participate in this program can take.

Tea Connexions Marketing Actions

To promote this program, Tea Connexions will be taking the following actions:

1. http://www.leaftea.com: The "Business Opportunity" Link will hyperlink to http://www.teabizinabox.com as opposed to http://www.leafteabiz.com

2. http://www.tea4free.com: Banner advertising will be used to send traffic to http://www.teabizinabox.com. This means that Distributors that are referring traffic to http://www.tea4free.com will gain the indirect benefit of promotion to http://www.teabizinabox.com. And since TBIB must be purchased through a Distributor this means that the more traffic referred will increase the chances of the Distributor earning $35 through a successful referral.

3. Ongoing Newsletter Promotion: The tea4free newsletter is sent out 4 times per year. Each newsletter will advertise TBIB. The next scheduled newsletter for 2003 is September.

4. One-Time Announcement To the Complete Tea Connexions Database: Before the end of this month, and a couple of days after http://www.teabizinabox.com is live and operational, we will be issuing a major press announcement to the complete permission marketing database, which consists of 1000's of people.

5. Tele-Marketing Campaign: Beginning in September, Tea Connexions will tele-market this program to a test market of 20,000 opportunity seekers. Successful sales will be transacted on http://www.teabizinabox.com, meaning we will be putting the sale through the nearest Distributor.

Distributor Marketing Approaches

Distributors can market this program by taking the following actions:

1. Online Promotion: All Distributors that participate in this program will be provided with the html pages used to create www.teabizinabox.com, provided that the Distributor agrees not to change the contents of the site. Distributors that purchased our e-commerce solution will have this set up, at no cost, on their website. The "business opportunity" link will be replaced with a "Tea Biz In A Box" link that will take the visitor to the pages directly within the Distributors site. For instance, if someone clicks on the link, it will take them to the url: www.Distributordomainname.com/teabizinabox. Once this is setup, all the Distributor has to do is promote their website through search engines and link exchanges.

2. Newspaper and Magazine Classifieds: Distributors can create local, sustainable distribution of the products by promoting this tea opportunity in local newspapers and magazine ads by placing small ads that generate phone calls or visits to their website.

3. Gift Shops, Tea Shops, Flower Shops: TBIB is the perfect product to introduce to these potential customers because there is so much value in the box. All the Distributor has to do is explain the value and sell the kit. And since the purchaser gets a wide selection of products-26 unique items-the products can be test marketed in the store. These types of customers will appreciate the flexibility offered by this program because case quantity purchases will not be necessary. Distributors benefit because they can approach these clients with the retail prices and discount the prices based upon the volume of the purchase. In short, this is a simple way to wholesale product.

4. Fund-raisers: The discount program built into TBIB is perfect for fundraising purposes. Organizations that want to raise money can purchase TBIB from a Distributor and then earn revenues by selling the products at the suggested retail prices.

Conditions of Participation

1. Must be a Distributor member in the Tea Connexions Buying Group.

2. Must have an e-commerce ready website, either through Tea Connexions or built on their own. If the Distributor builds the website on their own, it must be approved by Tea Connexions.

3. The website must have a visible link to www.tea4free.com.

4. The Distributor member must be in good standing with no payables to Tea Connexions.

5. The Distributor member must agree to honor the Discount program of 20 to 50% off retail.

6. The Distributor member must agree to serve TBIB customers in their area as best they can.

7. The Distributor member must sign up to the affiliate program, if they want to qualify for the $35 commission for sales transacted through the TBIB online store. Commission payments will be initiated through PayPal.

Program Launch

The program is scheduled to launch later this month, to correspond with the completion of the TBIB website that is under construction. Further details, along with an update of some of the other projects Tea Connexions is working on, will be released later next week.

If you have any questions, feel free to call Tea Connexions on our toll free line: 1-877-LEAFTEA (532-3832).

Yours sincerely,

Sanjay Gupta
President/CEO


Remember:

Gourmet Tea + Beautiful Packaging + Superior Service = Exceptional Value!