Kyle Kaler

That's a great question, and I'm trying to be really careful about what I say and how I say it. Yeah, it is fun. Complex? It can be complex, yes.

You know, you would think it would be as simple as, you know, distributor buys my product, and then once they buy it, you know, it's their responsibility, and then it's their responsibility to sell it, right? But the reality is that it's not as black and white at all as it would seem.

You know, you would think it would be as simple as, you know, distributor buys my product, and then once they buy it, you know, it's their responsibility, and then it's their responsibility to sell it, right? But the reality is that it's not as black and white at all as it would seem.

You know, you would think it would be as simple as, you know, distributor buys my product, and then once they buy it, you know, it's their responsibility, and then it's their responsibility to sell it, right? But the reality is that it's not as black and white at all as it would seem.

So most distributors have a guaranteed sale clause where I am guaranteed to the distributor that the product that they buy from me will get sold.

So most distributors have a guaranteed sale clause where I am guaranteed to the distributor that the product that they buy from me will get sold.

So most distributors have a guaranteed sale clause where I am guaranteed to the distributor that the product that they buy from me will get sold.

And if it doesn't, the cost comes back to me. Either I have to buy it back or I have to discount it to get rid of it. Or maybe it expires and I have to pay for it to, you know, get thrown away.

And if it doesn't, the cost comes back to me. Either I have to buy it back or I have to discount it to get rid of it. Or maybe it expires and I have to pay for it to, you know, get thrown away.

And if it doesn't, the cost comes back to me. Either I have to buy it back or I have to discount it to get rid of it. Or maybe it expires and I have to pay for it to, you know, get thrown away.

Very risky and very costly, yes.

Very risky and very costly, yes.

Very risky and very costly, yes.

So, you know, this was a few weeks ago. We had an invoice that had a $2 charge from a retailer. And the distributor tacked on a $40 administration fee on top of that $2 fee. And so individually, $40, not so much, but repetitively done over and over again, adds up to a lot.

So, you know, this was a few weeks ago. We had an invoice that had a $2 charge from a retailer. And the distributor tacked on a $40 administration fee on top of that $2 fee. And so individually, $40, not so much, but repetitively done over and over again, adds up to a lot.

So, you know, this was a few weeks ago. We had an invoice that had a $2 charge from a retailer. And the distributor tacked on a $40 administration fee on top of that $2 fee. And so individually, $40, not so much, but repetitively done over and over again, adds up to a lot.

Yeah. So we have somebody that works with us and their sole job that they do for us is to look at all of the chargebacks and fees that we get charged on the distribution side and try to determine which ones are legitimate and which ones are not.

Yeah. So we have somebody that works with us and their sole job that they do for us is to look at all of the chargebacks and fees that we get charged on the distribution side and try to determine which ones are legitimate and which ones are not.

Yeah. So we have somebody that works with us and their sole job that they do for us is to look at all of the chargebacks and fees that we get charged on the distribution side and try to determine which ones are legitimate and which ones are not.

Yeah, no, there's not really much of a way around it. If we want to grow and become a larger company, a national company, we're going to have to continue to deal with distributors and continue to have to take on potential partnerships and relationships that are not profitable.