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Wednesday, August 4, 2004
Wednesday, August 4, 2004
Racine, WI – Pacific Sands, Inc (OTC BB: PFSD) CEO updates Shareholders on Company Transition, Manufacturing and Operations
Dear Shareholders,
The purpose of this communication is to bring our shareholders and interested parties up to date on what we've accomplished in the first month since the management transition at Pacific Sands.
Our primary goals for our first three months of operations were to effect the management transition, move the company and all of its assets from the Clovis, CA facility to Racine, WI, cut overhead, increase production and distribution efficiency, develop short and long-term marketing and sales strategies and re-establish communication and goodwill with our venders, dealers and shareholders.
I’m very excited to report that we have accomplished most of these goals in the first month and have made progress on all of them.
We have successfully closed down the Clovis, California operation, and transferred the proprietary processes and formulas necessary to manufacture our current suite of Eco One products as well as future products based on the technology. We have established an office, manufacturing, warehouse and shipping facility in Racine. Our new facility gives us plenty of room to grow, while keeping costs at a minimum in a very flexible environment.
We have cut the company’s overhead and expenses. Our current facility, while substantially larger than the previous space is actually costing us less per month. Additionally, VP of Marketing and Sales, Michael Michie and I have agreed to take reduced salaries until such time as the company achieves sustainable profits.
By developing standardized manufacturing, bottling, labeling, order entry and shipping and receiving procedures, we have managed to increase our production capabilities from approximately $3,000 in product to an estimated $36,000 per day. We have engineered and installed a fast and efficient multi-head liquid filler and designed a scaleable manufacturing that can be run by 1 to 6 employees depending on demand. We have also trained two employees to handle order entry, bookkeeping manufacturing and distribution so management time can be spent engaged primarily in sales and marketing.
We have worked to increase process efficiency. Shortly after implementation of our new systems, we received a new dealer inquiry at 2PM. By 2:20 PM the dealer was signed up and their order was packaged. By 2:30 in was in the back of a truck and on its way. It’s precisely this type of efficiency and service that we believe will make Pacific Sands able to compete in the broad marketplace of environment and health-friendly products.
Sales and marketing of existing products are obviously now our primary focuses. To keep that focus, we are cutting away extraneous and non-profitable company business such maintaining a retail storefront, book sales or other distracting enterprises. We are committed to pursuing what we believe are our most immediately accessible and profitable marketplaces: namely the current line of Eco One Spa products and the general purpose household cleaning products. We are in the process of contracting to have a series of video point of purchase, training and “direct response TV” spots made for the Eco One Spa products. We are also currently working to re-establish the direct response TV marketing campaign for the Eco One All Purpose household cleaner product.
More information will be available in the next week regarding the marketing and sales strategies that we are pursuing.
The management of Pacific Sands would like to extend its heartfelt thanks to John Schacht of the Rapids Business Center and Racine Mayor, Gary Becker for helping to make this move possible.
Sincerely,
Michael L. Wynhoff, President / CEO
About Pacific Sands
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CONTACT: Pacific Sands, Inc. (OTCBB: PFSD)
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