1. What is OTC?Over-The-Counter marketing is the ability for IBO’s to offer XS Energy Drinks to retail establishments for resale while staying within the Quixtar rules and regulations. The best industries to contact would be coffee bars, restaurants, bars, health clubs, etc. It is critical that the retail establishments know and follow the resale guidelines established by Quixtar rules and regulations. In short: the actual XS brand (logo) cannot be displayed and the Energy Drink must be poured out of the can and into a container (plastic cup, sport bottle, etc.) To help with this marketing venture, XS Gear offers generic branded promotional material that includes plastic cups, table tents, coasters, flyers, & posters. The XS Energy Drinks cannot be sold in the can through a retail business or in vending machines. Have a Blast! How about a Citrus Blast, Tropical Blast, or a Grape-Berry Blast! Get the idea?


2. Can XS Energy Drink cans be sold through a retail store, vending machine, or gas station?
No, XS Energy Drink in the can is not allowed to be sold in a retail store or service establishment. The Retail Sales Rule (Rule 4.3) states that an IBO shall not permit the Corporation’s products or services to be sold or displayed in retail stores or any similar establishments. The Rule goes on to clarify that an IBO that works in or owns a retail store must operate their IB separate and apart from the store.

*To appreciate the reasoning behind this Rule one must keep in mind that it is designed to give people from all walks of life the ability to own their own business. Allowing our products to be sold in retail or service establishments would give those IBO’s that have access to them an unfair advantage and would be contrary to the person-to-person nature of the business.


3. Target your market:
Usually bars and restaurants with a liquor license sell energy drinks for mixers or as unique drinks. Other venues where energy drinks are sold are smoothie bars and coffee bars where blended drinks are sold (XS blended with ice and cream makes a great, energy smoothie). Probably the best venue for selling Energy Drinks is via health clubs, as long as it is sold within the guidelines of Quixtar Rules—not displayed and must be poured into a third-party container, such as a cup, glass or sport bottle (most gyms have their own branded sports bottles they sell there). Due to the healthy nature, great taste profile, and unique effect of B-12, many people become regular consumers.


4. Plan your presentation:
a. Don’t waste time selling the wrong person – ask who makes buying decisions for the bar and schedule a time to meet them.
b. Bring a 12-pack of each flavor or at least a few cold cans of each flavor for them to try. Use the 4-pak or 12-pak custom carriers. Pop open a can and pour it into cup of ice.
c. Look the part…wear XS Gear to increase your credibility.
d. Explain the generic marketing campaign – let the owner know that they can even keep marketing other brands, but sell the Blast! energy drinks as an alternative for health, taste and for people that prefer low carb options (Michelob Ultra is having significant success being marketed as a low carb product to bars and restaurants). Explain how XS is sold via the a private online channel and needs to be displayed without showing the XS brand and sold without selling cans over the counter.
e. Have the “Have a Blast” plastic cups to show for dramatic effect.
f. Offer to sample to people within the establishment during popular times to demonstrate success.
g. Potentially explain the benefits of your referral marketing program, where if the establishment refers other people to purchase/promote the energy drink, they can extend their sales beyond their four walls to online profits that operate 24 hrs/day and 7 days/wk.
h. SAMPLE DIALOG:

Getting an appointment:
Hi, my name is Joe. Who is the buyer or decision maker here for beverage purchasing? When is a good time to call them? (Usually mid-afternoon is best time when the buyer is there and business is slow.)

Phone conversation with a buyer:
Joe: Hi? My name is Joe. I’m a rep for XS Energy Drinks. Do you sell energy drinks at your establishment currently?
Buyer: Yes, we sell BRAND X.
Joe: Do you sell diet or low carb sodas?
Buyer: Yes.
Joe: Do you sell low carb energy drinks?
Buyer: No.
Joe: Do you sell any energy drinks that taste good?
Buyer: No.
Joe: I’d like to bring you XS Energy Drinks, the largest US-manufactured energy drink and the fastest growing. They get the best flavor ratings and have no sugar or carbs, so they are VERY popular with the ladies. When is a good time for me to come by?

At the Establishment:
Joe: Hi, my name is Joe with XS Energy Drinks, thanks for taking the time to meet with me. I brought a few flavors of XS Energy Drink with me. I’d like to have you taste these versus the other drinks and tell me what you think. My goal is NOT to replace the other drinks, but let your customers have a choice when they drink them, the standard drink and ours. In fact, I’d like it if you kept marketing the other drinks and simply gave people samples of ours when they ask for any other brand and display our “Have a Blast!” campaign (all the XS drinks use the Blast naming convention). If I gave you a 12-pack of your favorite flavor, will you do that?


5. Remember some simple talking points when sampling:
a. Tastes better than other energy drinks, it tastes great! Ask people if they have tried other energy drinks, and let them know that this tastes better than other energy drinks…in fact, let them taste it!
b. Better product story than other energy drink. Let people know that most energy drinks are really just sugar and caffeine which weakens endurance with a sugar crash and causes recurring insulin responses which wears on the pancreas and increases calorie storage as fat. Due to the healthy nature, great taste profile and unique effect of B-12, many people become regular consumers.
c. Profitability story no other drink offers. Simply put: at almost $9/12-pack of available profit ($3.99 retail mark-up and up to $5 of performance bonus per 12-pack), there is more profitability than any other drink on the market for retailers who become IBO’s.


6. Have information to give:
a. Generic comparison charts using the OTC “Have a Blast” descriptor, clearly describe the difference between your Energy Drink and other drinks on the market.
b. Table tents use the “Have a Blast” descriptor at the point of sale. These can be placed on all the tables in a restaurant, bar, health club, etc.
c. Coasters keep the “Have a Blast” campaign in front of the consumers at all times.
d. “Have a Blast” clear plastic cups are great for launching within this type of retail settings.
e. Posters using the “Have a Blast” description give more brand awareness in a retail environment without compromising the Quixtar Retail Sales Rule.