Why does a producer list on PrimeStox?
Producers are able to improve their working capital position by selling their products in advance on PrimeStox. This gives them funding for their business and time to arrange a secondary sale for a higher price. In addition producers are creating a community of investors who can follow their brand and support their future growth.
Why do investors fund offers?
Investors fund offers to make money and to support high quality SMEs, young people and local food production. Investors buy the products on PrimeStox expecting that a secondary sale can be arranged at a higher price in the time available. PrimeStox works on behalf of the investors and with the food producer to make this possible. In the event that a secondary sale cannot be arranged, the investor continues to own the product and can request delivery.
What is "Symphony in Food"?
How it Works
"Symphony in Food" is what PrimeStox is aiming for. Each producer we bring is like a musical note and together the effect should be harmonious. Each offer complements the other to create a compounding and resonating effect.
In what way do I "Own the Product"?
At PrimeStox by funding an offer you are taking ownership of a quantity of product at wholesale prices. It is then held on your behalf on consignment. You then wait for the time indicated while a secondary sale is arranged at a higher price. If this is successful, the product is bought back from you and you earn a profit. In the unlikely event that a secondary sale is not arranged in time, you continue to own the product and can even request that it is delivered to you at no extra cost.
Who am I buying the product from?
You are buying the product from PrimeStox. PrimeStox has a separate agreement with the producer to buy the full batch of his product and PrimeStox is selling it to you on the website.
Where is the product stored?
PrimeStox is acting as Consignee of the product on behalf of investors. This means that PrimeStox is responsible for storing it and caring for it. Usually PrimeStox will agree with the producer that they will hold the product in their warehouse or premises under a separate contract. The same duty of care for the product applies to the producer.
Who is buying the product back from me?
PrimeStox is buying the product back from the investors and is paying them a profit. PrimeStox has a right to buy it back at that price as agreed in the offer. However the repurchase of the product is not guaranteed and depends on PrimeStox's ability to arrange a secondary sale on behalf of the investors. Usually PrimeStox will aim to sell the product back to the producers at the higher price.
Can I get the product instead of repayment?
Yes this is an option for UK deliveries. If you would like to receive your product in the mail instead of payment you can request this by emailing PrimeStox on firstname.lastname@example.org. The timing of delivery may not be immediate in some cases because the producer may require time to complete the manufacturing. A suitable date can arranged directly by email.
Are these offers purchase-order-backed?
In some cases a producer already has a purchase order from a distributor or retailer to buy the product being funded on PrimeStox. In this case the certainty of a secondary sale is higher and it is even more likely that PrimeStox will be able to repurchase the product at the time and price indicated.
What do producers use the funding for?
Producers will use the funding to optimise working capital. This includes paying short term production cost like labour, raw materials, packaging and transport.
Can the money be repaid so quickly?
Yes it can. The short-term production costs which PrimeStox pays for are usually covered by sales. Healthy companies should not have a difficulty paying back these costs from receipts from sales.
What about larger amounts?
Every offer on PrimeStox has a Prime category. This is for investors who are prepared to buy more of the product offered and earn a little more. Prime profits are higher than the profits advertised in the standard category. To see the Prime profits click on "Go Prime" on the package page. You will need to register to access that page.
What about default?
It is possible that the product cannot be repurchased at the time and price indicated for a variety of reasons. If PrimeStox and the producer have acted in good faith and still not been able to conclude a secondary sale of the product then the timing may be delayed or the amount paid may be less. In that case PrimeStox will notify the investor group as soon as it is aware of a potential delay and will work on behalf of the investors to find remedies. These include taking delivery of the product or finding alternative buyers. When group decisions are needed they will be taken by majority voting and weighted by ownership.
How does PrimeStox choose its producers?
Transfers & Payments
PrimeStox chooses only the best food producers who have superb quality and track records. We seek out producers with the potential to become world-class brands, selling in established outlets with young, forward-looking and dynamic leadership teams.
Does PrimeStox take deposits?
No we do not. PrimeStox sells products in bulk at wholesale prices. After a transaction concludes the buyer owns the product and all its potential benefits and PrimeStox receives payment.
When am I charged?
As with any online purchase you are charged when you place your order. This ensures a minimum of complications and gives you the certainty that your order has been received. Your card will be charged at the time you press Complete Your Purchase on the payment page and the payment will show on your bank statement.
What happens if and when an offer lapses?
In the unlikely event that an offer lapses on PrimeStox because it did not sell required minimum of product then all the investors are informed by email as soon as the offer is withdrawn. The investors are refunded within a maximum of 3 days and incur no cost. Any transaction and other fees are borne by PrimeStox.
How does repurchase happen?
When PrimeStox buys the product back you are notified by email and your dashboard shows a positive balance. You accept the repurchase and PrimeStox transfers the payment to you by bank transfer within 3 business days. This can also be done by email at email@example.com. You release title to the product which passes back to PrimeStox and you receive the funds.