Free Uncontrolled Spin: The Power and Danger of Spin ("Un"missable Series Book 1) by Jerry Summers Page B

them.
    “Let’s take a breather momentarily to enjoy our meal,” Sean says, and Jessica nods agreement.
    They enjoy their catered lunch with Sean’s merlot and dessert cannoli, including small talk about the weather and their mutual friends, Mark and Bonnie. When Sean resumes the business discussion, he begins by telling Jessica he has a proposal he wants her to consider.
    “Since our first meeting, I have done a fair amount of research and thinking about how SGM could help the Beauty Boutique. What I have discovered is that you have a very interesting niche market that has tremendous growth potential, as most designers have neglected it. Jessica Silva designs, as I’ve been told, are appreciated for their quality and pricing, but because of your limited exposure to various markets, you are virtually unknown except to the very few in your target market. One of the problems I see is, once your success becomes known and other designers see the market potential, competition could become quite intense, and you should have at least three or four years of designs ready to roll out on very short notice. I agree with you that the Beauty Boutique needs to develop deep market penetration and market share by the time this niche market potential is recognized by others. Much like the footwear industry, you need to be prepared to drive newcomers in your niche market out by way of pricing and tight profit margins. This brings us to the fact that your distribution channels are extremely shallow, even anorexic, since they are limited to your corporate-owned boutique. Research indicates you have resisted selling outside your properties, and unless you intend to open a vast number of outlets, your market penetration will remain insignificant compared to others in the industry. Your profit margin per piece is very good for an American-manufactured product, but you’ll need to cut the price by at least thirty-five percent if you intend to dominate the niche market.”
    Jessica interrupts Sean and says, “That’s impossible if I want to maintain the same quality. It’s not realistic and you can’t fake quality.”
    Sean smiles. “That’s a good assessment, if you’re manufacturing in the United States.”
    Jessica mildly shakes her head, processing, then says, “If you’re outside the United States, you have labor force issues, distribution issues, and quality control concerns. Additionally, I am vehemently opposed to using child labor or sweatshops and will go bankrupt before I will consider either of those options.”
    Sean smiles again genially. “Have I suggested either of those options?”
    She gives him a suspicious look. “Not yet, no.”
    “Nor do I ever intend to. You jumped to several conclusions that are way off the mark. First, let me point out you already have distribution issues much larger than you have anticipated. Quality control is always an issue in your chosen industry, and salaries make up your largest labor force issue in the United States. So these concerns aren’t going away no matter what is eventually decided.”
    Jessica nods, her red hair falling softly over her shoulder. “Well, you have a point there.”
    Sean clears his throat and continues, “What I have envisioned for the Beauty Boutique is a four-pronged approach that will required a two million dollar minimum capitalization within the next ninety days. It will also require establishing a production facility outside the United States, and I have identified a possible site in Brazil. It will require some innovative benefits, and it will require allowing your designs to be sold outside of your privately owned boutiques at a slightly higher pricing premium than what can be expected in your facilities.” Sean notices Jessica becoming uneasy as she fidgets with her pen, so he pauses for a moment, compelling her to make eye contact, then says, “This outside distribution will be limited in both time and scope. The intent is to get the deeper