Overall Sales Book Layout

Pavel Ceban
124 Bermondsey Street,

London Bridge, SE1 3TX
ecommerceusa@vivobarefoot.com

Cover Page:
Vivobarefoot: My Company
Include logo or picture that covers up a good portion of the page and looks awesome
The North Face: Buyer Company
Include small version that is somewhere towards the bottom

Prepared for Mr. Michael Cramer of The North Face
Prepared By: Mr. Pavel Ceban of Vivobarefoot

Pavel Ceban

March 4, 2014

Michael Cramer
Purchasing Director
The North Face
1023 1st Ave
Seattle, WA, 98105
Dear Mr. Cramer,
On behalf of Vivobarefoot, I would like to thank you for taking the time out of your busy schedule to
meet with me and discuss Vivobarefoots Evo Lite shoes. I am truly excited for the opportunity for us to
work together and build a successful business relationship. After all, we realize the value and
overwhelming success of The North Face brand, and we have developed a solution that will not only meet
your most pressing needs, but also further that success. With our Evo Lite shoes, we are confident that
The North Face will experience large increases in ROI, greater traffic in the footwear department, and an
increased sustainability report ranking.
Attached is a sales proposal that describes the important features and benefits of Vivobarefoots Evo Lite
shoes, one of the most popular minimalist shoes in todays market. Moreover, Mr. Cramer, the enclosed
material will address any concerns that you may have regarding our product, as well as a summary of our
recommendations and implementation process.
The Evo Lite shoes were designed to fit the needs and styles of The North Faces varying target markets.
Simply put, our goal is to provide the public with shoes that will allow them to never stop exploring.
Together, Vivobarefoot and The North Face can provide consumers with a high-quality product that will
satisfy their outdoor needs and encourage them to continue shopping at The North Face.
Once again, we at Vivobarefoot thank you for your time and consideration, Mr. Cramer. We look forward
to creating a long-lasting, mutually beneficial relationship with The North Face. If you have any questions
or concerns, please do not hesitate to call me. I can be reached at 567-999-5432.
Sincerely, (LEAVE SPACE for my Signature)
Pavel Ceban
Sales Director, Vivobarefoor

Pavel Ceban

Pavel Ceban

Table of Contents:

Customer Needs 1
Areas of Concern 2
Objectives 3
Recommendations 4
Implementation Schedule 5
Addenda Table of Contents 6

Pavel Ceban

Customer Needs:
Have something to show about The North Face, like a picture, logo, something that represents needs

Increase ROI: The North Face is one of the most successful companies in the outdoor gear industry with
consistently high yearly sales figures. Nevertheless, one of the main focuses of The North Face is to go
one step further and generate greater overall returns from its investments.
Increase Sales in Footwear Department: A highly important factor of The North Faces brand popularity
is its ability to provide its customers with trendy, quality apparel and clothing. Over the years, this has
been disproportionate towards the footwear department, as consumers tend to be more concerned with
other clothing sectors at The North Face.
Increase Sustainability Report Ranking: With a true passion and commitment to the green movement, The
North Face requires that all of its products and production techniques be produced sustainably. One of its
goals is to do this on a broader level and partner with companies that can further The North Faces
sustainability report ranking from a C to C+ ranking.

Pavel Ceban

Areas of Concern:

A. Pricing:
One of The North Faces major concerns regarding the Evo Lite shoes is pricing, for which it was
mentioned that our prices were a little too high. The North Face wants to increase its return on
investments while also making sure that it continues to make profits. As a result, The North Face
has asked for a discount as well.
B. Newness of Product:
As previously discussed over the phone, Vivobarefoots relatively new line of footwear may not
yet be well-known enough to keep The North Faces target market interested or satisfied.
Additionally, the minimalist shoe movement is still in its beginning stages, so the concern is that
there is currently not enough exposure to the product.
C. Need for Product:
With a variety of current footwear and outdoor shoes, The North Face feels that it has an adequate
amount of footwear already in stock. From our previous discussions, this concern also stems from
the fact that the shoes are not selling enough anyway, so there is no present need to stock up on
more shoes.

Pavel Ceban

Objectives:
A. Pricing: With respect to pricing, Vivobarefoot is offering The North Face an optimal order
quantity of 15 cases or 180 units of Evo Lite shoes for the 2014-2015 year. This optimal order
quantity is based on three shipments and includes a favorable discount of 23% for The North Face.
More importantly, we guarantee The North Face will enjoy a yearly ROI of 89%.
B. Newness of Product: Regarding the newness of our product, Vivobarefoot is one of the pioneers of
the minimalist shoe movement, and we hold one of the largest market shares in the industry,
which can give The North Face a greater share in this market as well. Additionally, we will host a
2-Day Running Event that will name The North Face as the sponsor. This event will be organized
completely by Vivobarefoot, including marketing and advertising costs. It will be located at Mt.
Rainier from April 3-4, 2014, and will be solely focused on developing The North Faces brand
image and getting consumers accustomed to Vivobarefoot shoes.
C. Need for Product: The North Face currently spends 15% more than our offered price on producing
its own line of minimalist shoes, which only includes 3 different types. Not only is this creating
increased costs, but it is reducing profits due to a lack of widespread consumer interest as well. As
one of the most popular minimalist shoes in the market, the Evo Lite shoe will be a must for any
runner or hiker and outdoors retailer.

Pavel Ceban

Recommendations
Pricing: As mentioned earlier, we suggest that The North Face invest in 180 units of Vivobarefoot shoes,
delivered in three installments throughout 2014-2015. This sum will include a 23% discount, as well as a
free training clinic for employees and customers regarding the shoe. More importantly, The North Face
will experience an overall ROI of 89%, significantly higher than the current IRR of 25%. Additionally,
The North Face in Seattle can expect to generate yearly profits of $9,666 when it takes on this order.
Newness of Product: The Evo Lite shoe will be a perfect complement to The North Faces sustainable and
athletic environment. With Vivobarefoots rapidly growing popularity and large market share in the
minimalist shoe movement, we can guarantee first-year revenues of over $20,500 for your Seattle store.
Overall, your customers have asked for more variety in the footwear that The North Face offers, and our
Evo Lite shoes are exactly what they have been looking for. Now is the time for The North Face to invest
in our suggested order and reap the rewards of a promising business relationship.
Need for Product: Our team of analysts has combined previous sales data with Seattle consumer reports to
make it evident that Seattleites will love the Evo Lite shoes. In fact, our data suggests an increase in
traffic of at least 5% for the year, and that does not even factor in the Running Event or Sales Events. By
investing in our Evo Lite shoes today, we can guarantee The North Face a healthy return, increasing
profits, and a reduction in your research and development costs towards shoes.

Pavel Ceban

Implementation Schedule:
February 16, 2014 First Call with Mr. Cramer of The North Face
February 18, 2014 Second Call with Mr. Cramer to Determine Meeting
March 4, 2014 Vivobarefoot Presentation with Mr. Cramer
March 5, 2014 Follow-Up Meeting
March 11, 2014 First Delivery of Evo Lite Shoes
March 13, 2014 Follow-Up Call Regarding First Delivery
April 28, 2014 Assessment and Review Meeting with Mr. Cramer
June 1, 2014 Second Delivery of Evo Lite Shoes for Yearly Summer Sale
June 2, 2014 Follow-Up Call Regarding Second Delivery
September 4, 2014 Assessment and Review Meeting with Mr. Cramer
November 20, 2014 Third Delivery of Evo Lite Shoes for Post-Holiday Winter Sale
November 21, 2014 Follow-Up Call Regarding Third Delivery
January 5, 2015 Assessment and Review Meeting Regarding Yearly Figures

Pavel Ceban

Addenda Table of Contents:
Photographs: pages 7-8 ?
Testimonials: pages 9-10?
Training Clinic Information: page 11
Sustainability Guarantee: 12
Advertising: pages 13-15 ?
Profit and ROI Forecasters: pages 16-18
Unit Cost 16
Profit Forecaster 17
Purchase Order 18

Pavel Ceban

Photographs:

Pavel Ceban

Pavel Ceban

Pavel Ceban

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Pavel Ceban

Testimonials:
Its a curious sensation, being aware of the ground like this but not having to worry about cutting my foot open, and I enjoyed the run, relying on my
sense of touch instead of using a flashlight for the path. Wired magazine
Super-light running shoes for those who like barefoot running. Modular design allows for both wet sports or cooler weather. Wired magazine
I read a lot about barefoot shoes before deciding to purchase one from Vivobarefoot. This brand, it seems, almost unanimously gets
the highest ratings from both athletes and non-athletes looking for quality barefoot shoes. Dustin (Runner, father)
Yeah Im supposed to just be reviewing the Evo their high performance running shoe. In a
nutshell its awesome. Dr. Steve Gangemi
VIVOBAREFOOT debuted in 2003 as the first minimalist shoe with a patented, ultra-thin puncture
resistant sole that offers maximum sensory feedback and maximum protection.
They are lightweight, feel great, and an excellent bonus, they look fantastic too. I love wearing them each day. I suffer from fairly
severe plantar fasciitis and learned recently that these might be therapeutic. I've had no arch pain on days that I wear them. An
excellent purchase. Brooke (Runner/hiker)
On Vivobarefoots shoes, "We make people's lives better through knowledge and education. Give a man a pair
of shoes and he will run for a day, teach him how to run and he will run for a lifetime. Lee Saxby (World-
Renowned Certified Running Coach)
Ive performed my own in-house walking gait pressure analysis
testing on my force platform in many pairs of shoes over the years.
I was, and am still, truly amazed at the stark similarity between
my barefoot images and the images in the VIVOBAREFOOT shoes.
Tim Brannder (Podiatrist, father)

The second I
put on the
VIVOBAREFOOT shoes I noticed my posture was better and
my ankle began strengthening immediately. I began to feel
perky in my right leg for the first time in forever. The
VIVOBAREFOOT tech is so legit. Gabriel Rhoads (Hiker,
recovering from a broken ankle)

Pavel Ceban

Training Clinic Information:
Vivobarefoot will provide The North Face and its costumers with free training regarding the product and
its uses, while we will also take care of any future concerns, needs, or technique confusion from future
costumers. Led by world-renowned running coach Lee Saxby, our training clinic will reduce The North
Faces training and retention costs, while also opening the door towards greater customer satisfaction.

"We make people's lives better through knowledge and education. Give a man a pair of shoes and he will run
for a day, teach him how to run and he will run for a lifetime.
YouTube Link: https://www.youtube.com/watch?v=1MXabZgKgxI

Pavel Ceban

Have a screen shot nicely placed on this PAGE!!!!! Here is the link:
http://www.vivobarefoot.com/us/discover/our-story/philosophy/sustainable-product-guarantee

Advertising:
Pavel Ceban

Regular Flyer about the shoe with an image and a logo, and Your leader in minimalist shoes
Live barefoot everyday
A shoe for every terrain

The company site: http://www.vivobarefoot.com/us
The LOGO:

Address to put with Logo:
T. 800-437-2526
E. ecommerceusa@vivobarefoot.com
124 Bermondsey Street, London Bridge, SE1 3TX

Pavel Ceban

2-Day Hiking Event Poster: From April 3-4, 2014
Featuring some cool image of a runner wearing the Evo Lite shoes
Sponsored by The North Face

Pavel Ceban

Unit Costs/Profit Analysis
Product: Vivobarefoot Evo Lite Shoes
Selling to: The North Face in Downtown Seattle (1 store)

Price
Regular cost of each unit $68.50
Special promotional
allowance
($15.25)
Deal cost $53.25
Manufacturers suggested
selling price
$140
Normal retail selling price $130
Retailers normal profit $61.50 (48% markup)
Yearly summer sale
suggested price
$105.99
Yearly summer sale profit
margin
$52.74 (50% markup)
Post-holiday winter sale
suggested price
$90.35
Post-holiday winter sale
profit margin
$37.10 (41% markup)

This analysis is based on all factored-in per unit costs, which include Vivobarefoots cost of
manufacturing, shipping costs, labor costs, and meeting high sustainability standards. The regular unit
cost of $68.50 is roughly $10 less expensive than The North Faces own costs of shoe production.
Additionally, we suggest an initial 48% markup, with fluctuations during the sales periods.

Pavel Ceban

Profit Forecaster
Product: Vivobarefoot Evo Lite Shoes
Selling to: The North Face in Downtown Seattle (1 store)
This profit forecaster is an indicator of the future events of the purchase, including the sales periods and
discounts offered to The North Face. There are 12 pairs of Evo Lite shoes per case. All figures are based
off of the unit costs/profit analysis and historic sales trends, as well as Seattleite consumer reports. With
an initial yearly order of only 180 pairs, we expect The North Face to sell all shoes and earn total profits
of $9,666. The overall yearly ROI of 89% is also very favorable to The North Faces IRR of 25%.

Normal Yearly Summer
Sale
Post-Holiday Winter
Sale
Overall Yearly
Figures
Total stores 1 1 1 1
Deal dates June 1 June 30 December 26
January 10
February 2014-
2015
Regular cost per
12 units
$822 $822 $822
Less Allowance ($15.25)
Deal cost per 12
units
$822 $639 $639
Feature price $130 $105.99 $90.35
Cases
purchased
7 5 3 15
Total
investment
$5,754 $3,195 $1,917 $10,866

Total gross
sales
$10,920 $6,359.40 $3,252.60 $20,532
Total gross
profit
$5,166 $3,164.40 $1,335.60 $9,666
Return on
investment
(ROI)
90% 99% 70% 89%

Pavel Ceban

Purchase Order
Product
Code
Description Quantity Date of
Delivery
Investment
55576 Evo Lite Shoes
First Delivery
7 cases March 11,
2014
$5,754
77896

Evo Lite Shoes
Second Delivery
5 cases June 1,
2014
$3,195
99276 Evo Lite Shoes
Third Delivery
3 cases November
20, 2014
$1,917
Total Yearly Figures:
Total Investment $10,866

Total Gross Sales

$20,532
Total Gross Profit

$9,666
Return on Investment (ROI) 89%
Seller Signature: ____________________________________________ Date:

Buyer Signature: ____________________________________________ Date:
P.O. Number: 1223459939
P.O. Date: March 4, 2014

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Pavel Ceban

124 Bermondsey Street,

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