Vicks is an independent printing and distribution company and is based in Utica NY. In this scenario, they would become the printer and distributor for all Kendor Music products. Sixty percent of Vick’s current business is with music publishers, so they have the knowledge and capabilities to handle the needs of a music publisher (9x12 paper, and different collating/binding requirements). For over 30 years, Vicks has been the exclusive printer/distributor of Alfred Music, the 2nd largest print music publisher in the United States. They also print and distribute for a couple other smaller publishers including Mel Bay and Bourne/IMC (Gary Nelson and Michael Notar personal communication, February 23, 2018).
To transition to Vick’s, Kendor would retain its status as an independent company and would continue to handle all …show more content…
The minimum print run is 15 copies. s a year. Currently, Kendor’s minimum print run is 100 copies, and a 3-year estimated quantity is printed. By having a smaller minimum, and the capability to run a 4-month quantity it will greatly reduce Kendor’s inventory investment and turnover numbers. Vicks would charge a distribution fee of 4.5% of the retail price, with a rate increase of .25% each year during the term of the contract (3-year contract and can be negotiated). This increase is in anticipation of imminent minimum wage increase. Promotional orders and returns would be billed at the same rate (4.5% of retail). Warehouse space would be billed at $4.50 per square foot monthly. Kendor would require 5,000-6,000 square feet, and it should decrease as inventory is lowered. The warehouse fee is estimated at $27,000 a year. For printing costs, there is a $7.50 set up charge per product. Therefore, it is advantageous to print a larger quantity to distribute the set-up fee through more inventory. (Gary Nelson personal communication, February 26-27,
To transition to Vick’s, Kendor would retain its status as an independent company and would continue to handle all …show more content…
The minimum print run is 15 copies. s a year. Currently, Kendor’s minimum print run is 100 copies, and a 3-year estimated quantity is printed. By having a smaller minimum, and the capability to run a 4-month quantity it will greatly reduce Kendor’s inventory investment and turnover numbers. Vicks would charge a distribution fee of 4.5% of the retail price, with a rate increase of .25% each year during the term of the contract (3-year contract and can be negotiated). This increase is in anticipation of imminent minimum wage increase. Promotional orders and returns would be billed at the same rate (4.5% of retail). Warehouse space would be billed at $4.50 per square foot monthly. Kendor would require 5,000-6,000 square feet, and it should decrease as inventory is lowered. The warehouse fee is estimated at $27,000 a year. For printing costs, there is a $7.50 set up charge per product. Therefore, it is advantageous to print a larger quantity to distribute the set-up fee through more inventory. (Gary Nelson personal communication, February 26-27,