A CONSIGNMENT POLICY

This is for orders with 100 sweaters or more (or equivalent in other products). This amount that is needed as a minimum to develop a serious plan for developingan alpaca end product market in consignment style.  And when we say aminimum we really mean it: sweater markets trade with thousands of garmentsevery month.  So with this minimum approach you will be able to put your"seed" on the smaller chain stores or, better yet, stores that are notpart of a chain store.

This is a new proposal and we have tested with great success. It has 2 parts: what we do with our 
consignment policy and the second one is what you can do if you develop a consignmentpolicy for yourself.

Our consignment policy.
You will pay only 60% or 70% of the regular price. There is specific tables andconsignment prices for 
every product, some are published on the general list and others not. Just ask for them if you are 
interested. The other 30% or 40% you will pay ONLY if you sell the item. So in your next order you will 
send the 30% or 40% of the items that you have sold (and you will use our "Return policy" to return the 
UNSOLD items to exchange for "hot sale" items that are more fitted to your specific market (target 
market), "Return policy" in other part of this document).

We do this offer, consignment price, under specific conditions:

• The global order have to be around 100 sweaters (or US$4,500 equivalent on other products, regular 
  price before applying the consignment policy price).
• Sorry to say that we can not extend the consignment policy to the rugs.

Your consignment policy (a proposal for you, not mandatory!)
This is not mandatory. In the end is YOUR business. But we have made some test of the market and we 
know that this is working and getting BIG numbers for the ones that can afford the extra work. No extra 
money because we part from this point:
You have get 100 sweaters for sale on your retail point (outlet, farm store, boutique, warehouse, web 
place). We would be happy, more than happy, to tell you that will sell those 100 sweaters in the next 2 
days. But that would not be true. The true is that the alpaca fiber is gold (because of his many 
properties). But nobody knows it (yes, you & us and other "inner" people!). So you need to give 
exposure, publicity, huge marketing, put it in front of the customers. "Spirit of the Andes" (aBritish 
company that sell in Europe) has develop the consignment model with great success and is one of the top 
buyers in Peru. Estimated amount is around US$5 million each year.

So our suggestion is that you look around your area, the biggest city that is near your area. Keep 50% of 
the sweaters to sell on your original sale point (or method). But go in front of the manager of other stores 
and companies in your area saying that you will put "X" amount of alpaca sweaters so they can sell them 
on their stores. You will find the next :

• 50% of the store managers don't have a clue about what is an alpaca or what is intended for.
  50% of the store managers (the other half!) have heard about alpaca and his properties but NEVER has 
  touched an alpaca item.
• Some of them will say "No, we sell cashmere.... our customers know the cashmere garments..." (Some? 
  Most of them say that!). You need to brake the barrier giving the items in consignment: they will not pay 
  for them (they ARE paying, they will use the space on the shelves and windows! that's MONEY! that's his 
  investment! and they know it), but in terms of cash they will not pay. You left the garments and they will 
  sell. If they don't sell they don't pay and you pick up the unsold items (and put them in other store that 
  has found the right kind of customer or the right method of promotion or sale, or put them in your own 
  store or sale point or... use our return policy to exchange for better "hot sale" items).
  If they don't give a try to selling your alpaca products then the manager is risking the opportunity to get 
  its share on the discovering of this secret fiber or this secret Gold mine. Can he afford the risk of loosing 
  this opportunity? If he "hits" the market with a good product he will be one of the first to offer this kind of 
  products and their customers will come next year for more and more. If he "hits" he will "hit" very high 
  and very profitable with very low initial investment (because you have done the investment before and 
  you need his window or shelve, so both parts invest what they have in that moment). Not giving a try to 
  the alpaca garments is a business risk. Most of the managers are serious people that analyze good 
  business possibilities. Alpaca is Gold. The ones that can see it will get the "bigger" slice of the cake.
• With your own tag, with your own brand name on the products, every garment that has been sold will be 
  a publicity to YOUR alpaca products. No effort is lost. Every garment counts because every garment will 
  have YOUR embroidered tag (with your website or contact information).

So if you can afford the extra task of visiting, picking up sweaters, moving from one place to another you 
will learn, you will develop a market for YOUR products and you have done a big step toward a healthy 
business.

Remember: Alpaca is like Gold. You have Gold but you can not go to the grocery store to buy with your 
Gold bar. You need to find the market to sell that Gold and then go to the grocery. Finding and developing 
markets is our (your and ours) task.

Finally, if you want to develop a consignment plan and you order from us wewill develop a list of potential buyers (stores) that are in your area (thenearest big city).  We will provide you with email, phone and fax of theretail stores that could be interested in your alpaca products.