Direct sales strategy brews growth for Canadian tea company
Steeped Tea is a Canadian direct sales tea company that relies on a unique business model to drive sales. The idea was born accidentally after a suggestion to organize a tea party led to adopt a business strategy based on independent partners throwing tea parties in peoples homes. Steeped Tea opted to sell their tea though independent consultants, mostly women looking for a part-time income, rather than by building up their own sales force. The company, with annual operating costs of $250,000, currently employs eight people and has 400 affiliated consultants who sell their tea across Canada. Each tea party yields an average of $500 in sales. The owners are now contemplating on expanding into the US market.