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RAPAPORT... Bergio International Inc. stated that it is planning to open its first retail store in October. Berge Abajian, the company's CEO, said that construction is under way.
"I have been asked by many shareholders about the Faccia a Faccia collection, as well as others. Management decided that, going forward, our higher-end products will only be sold in our own retail stores, because we were unable to find the right partner to protect the design's intellectual property, while properly promoting the product," Abajian said.
While selling jewelry through its own branded boutique, revenue growth may be slower but Bergio anticipates increasing its image, according to Abajian. He added, "Investing a large amount of money in manufacturing for selling jewelry to large wholesalers, which we have tried in the past, puts undue financial stress on the company and its shareholders, given the relatively low profit margin, with such output generally failing to justify the gross margin on these orders. We believe that by selling directly to customers, the company will realize improved gross margins."
Bergio reported that revenue fell nearly 17 percent year on year to $263,552 in the first quarter that ended on March 31.
(OTCQB: BRGO) ("Bergio" or the "Company") announces several updates.
During the period of May 30 to June 2, 2014, Bergio attended the JCK Las Vegas Jewelry Show. Bergio developed a private label program to be sold exclusively for wholesalers and small chain retailers. The first order under such program was received for one of the Company's newest designs and the newest additions to the Company's bridal collection. The Company's sales for bridal pieces exceeded its sales for fashion pieces this year. stated, "We did not anticipate our sales numbers for the Las Vegas show, although we were able to change course and persuade a private label program with several wholesalers and chain stores in order to create sales." He continued, "I have been asked by many shareholders about the Faccia a Faccia collection, as well as others. Management decided that, going forward, our higher-end products will only be sold in our own retail stores, because we were unable to find the right partner to protect the design's intellectual property while properly promoting the product. By selling through our own boutique, growth may be slower but, in the long run, is anticipated to benefit the Company and better the brand name. Our changes to the Company's direction are intended to help the Company recognize faster revenues and gross margins for the investments made." He concluded, "I know shareholders want a faster return and I understand the frustration of the stock price, but I would like to assure them that the company is in great financial health. Due to industry changes, Bergio is currently fine-tuning and adjusting itself in order to reap the fruits of the future."
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