Product Territories

Product Territories

HRI has created an innovative approach to introducing inventions and products from around the world to the marketplace. An Inventor can purchase an Inventory Pack, thereby creating 40 Product Territories with HRI using its international marketing reach to offer these Product Territories to interested entrepreneurs or what we call Sales Directors.

Sales Directors

By purchasing a Product Territory, you become a Sales Director and benefit from having the exclusive rights to the “latest greatest” product in your chosen Territory.

With these Exclusive Rights, you now can approach all the relevant locations, retail stores and/or wholesalers in your area and get them to carry the product, knowing that if anyone decides to purchase and carry your product, you will receive the appropriate payment.

In addition, the Inventor could land a deal with a large chain that has stores within your Product Territory and subsequently, you will still receive a 2% override on the related sales (calculated at the wholesale price).

Note: A Sales Director can become Product Territory owner without being HRI Distributor.

The Inventor supplies information such as product details, cost breakdown, package quantities available and shipping costs etc., along with whatever sales guidance they want to provide to the Product Territory buyer (Sales Director). Inventors can gain up to 40 dedicated Sales Directors for their invention per Inventor Pack.

Product Territories

Product Territories provide the Exclusive Rights to an Inventor’s “Widget” within a specified Territory. These Product Territories are available for purchase on the HRI Retail Site and Distributors’ personal wholesale sites. Distributors or Sales People who buy these Product Territories become the Sales Director for that Territory.

The Inventor decides on the population per Territory and supplies information such as product details, cost breakdown, package quantities available and shipping costs etc., along with sales guidance.

Revenue

The Sales Director earns from two payment streams:

  1. An override of 2% on all sales made within his/her Product Territory. If a deal is made with a chain of stores and the product is shipped into the Territory to which the Sales Director has exclusive rights, then the Sales Director receives an override. In fact, the Sales Director gets the override on all product sales, including their own, within that Territory.
  2. All sales created by the Sales Director with the earnings being the difference between the direct wholesale price charged by the Inventor and the price that the Sales Director charges to his/her customers. The Sales Director may also sell direct to Customers at retail.

Example: The Inventor charges the “direct wholesale price” of $100 for their “widget.” This would be the cost to the Sales Director. The Sales Director then makes sales in his/her Product Territory at perhaps $120 to another wholesaler, $150 to a Retailer and/or $300 direct to a retail Customer.

Payments System

Sales Directors purchase directly from the Inventor, and the Inventor ships directly to each Sales Director.

Payment is made through an escrow account provided by HRI, safeguarding both the Inventor and the Sales Director.

It is the Sales Director’s responsibility to create demand for the “Widget” and make sales to retailers and customers within his/her Product Territory.

Example 1: Profit and Overrides

Alan has invented a game called Joker’s Den and buys the Inventor Pack from HRI. HRI then creates 40 Product Territories and lists them for sale on its website. Harley buys a Product Territory from his friend Frank, an HRI Distributor.

Harley now buys the Joker’s Den games directly from Alan at the direct wholesale price of $30, which is set by Alan. Harley sells it for $50 to retailers in his Product Territory with a suggested retail price of $100, earning $20 on each sale. Harley also sells directly to the end consumer through a mall kiosk, special events etc., earning the full $70 on each sale at the retail price.

Harley can also bring on other wholesalers, making a smaller profit on larger quantities.

If the Inventor negotiates with a chain of stores, some of which are located in Harley’s Territory, Harley gets paid. Since Harley gets paid an override of 2% on all sales of the Joker’s Den within his Territory, including any sales at those stores, Harley is happy to act as the Inventor’s representative and assist if required. Any major chain deal would be considered a great bonus for Harley.