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TAXCO BASED DISTRIBUTION

Jewelry products originating in Taxco have traditionally reached the world markets
by means of importer/distributors who sell to retail stores who then sell to the public.

The character and function of the importer/distributor based in the USA or other country is
known. Sales, cataloging, picking, shipping is the normal ordering of the business process.

Taxco products sell millions of dollars every week an operation of this nature
that could sell directly to Retail stores also to retail consumers
& would jump over the traditional USA Distributor function by underselling them.

The advantages of direct Taxco based distribution over traditional distribution are the following:

1. Greatly reduces fixed expenses associated with USA (or other nation) based distribution plant;
taxes, labor, rent etc. by substituting Mexican cost structure
resulting in price competition advantage.

2. Dramatically reduces cost of inventory in stock and in pipeline because the picking/shipping function is at the end of the production line where missing items can actually be made to order, and also parts can be stocked in semi-finished form etc. This means that the variety of selection in the catalog can be very large becuase all these pieces do NOT have to be physically in stock at the USA Distribution facility

3. It could readily be arranged with local wholesalers and retailers of silver or handcrafts that their pieces would be imaged digitally- that when a sale were consumated that someone from Artcamp come over with cash and purchase them

4. This means that a very large selection could be offered with a relatively very low cost of holding it; only the fast selling items need to be held on the shelves, the rest can be purchased upon order or else made.

PRODUCT LINES

1. Artcamp shop production http://artcamp.com.mx/pages/master.html etc.
2. .925 Sterling Silver Jewelry, Electroform Sculpture, Tableware etc.
3. 14 and 18 karat Gold Jewelry
4. Alpaca, Tianguis products
5. Guerrero Handcrafts; Hammocks, Xalitla beadwork, Painted Ceramics, etc.

Our position in Taxco allows us to thus provide the **ultimate** Taxco wholesale “local”

The major obstacles to realizing this Taxco Distribution Business Project

1. Telecommunications
2. Shipping to foreign customers

SOLUTIONS

1. Telecommunications
Creative Blaster VolP or similar more modern technology permits us to make telephone calls to the US over the Internet for 5 to 10 cents a minute or another telephone technology solution

2. Shipping to foreign customers
DHL World Mail permits us to gang up shipments for export/import process delivering them to the US Mail for delivery to ultimate address; this reduces cost of delivery (including Customs clearance) from Taxco to final address to somewhere in the área of $10usd per kilo.

MARKETING
1. Internet website with catalog of all lines and all items offered.
Website is an advertisable address and a site that can be cross-linked to

2. E-mail; Email newsletter and outbound email notifications and solicitations
3. Outbound telemarketing tied into the e-mail and Internet website
4. National trade magazine advertising to generate prospects, customers, and leads.

The project can be ramped up with the catalog of products presently produceable by Artcamp
only adding in a few pages of the other categories in order to gauge demand.

The market will then be a guide for what lines to feature
but pretty much we can simply keep on adding new lines and new styles,
only taking care to catalog them in such a way
that it is convenient and not confusing to the prospective customer.

WHAT KEEPS US FROM DOING THIS RIGHT NOW

1. Having the Stock Inventory (the most important of all)
2. Establishing the DHL Global Mail system features to our needs and
Generating sufficient package volume for the DHL Global Mail system to be cost efficient
(approx 20 packages per week)
3. Advertising budget or marketing plan to generate sufficient volume to support sales
4. Shelves tables shipping materials salary of a two workers for six months.