some of the same requirements and expectations. So it certainly does drive some variation in our
solution. Mark already mentioned the addition of a food grade facility thats built with the
requirements already in mind for having food products in place, but other than that other than a
few minor variations in the solution, the requirements are largely similar to other CPG
opportunities. So we see it as a good opportunity, the price point and the margins have to be
right, we have to be selective, but it certainly is part of our excitement around the CPG category.
<Q Mark Argento>: Is it like shelf stable product, or is it a refrigerated product, a
little of each, or...?
<A Michael Willoughby>: Currently, everything we are looking at in the pipeline is all
shelf stable product. It does not require refrigeration other than standard climate control.
<Q Mark Argento>: Got you.
<A Mark C. Layton>: It is a climate control facility. It has different standards related
to it than some of our what our clothing facility would have for example to it so and there are
some additional technology and operational requirements with it, lets say primarily in lot control
that we obviously dont see in fashion or in technology. Technology, you might see serial control
thats different, but we already had systems in place to be able to do with the lot control
features. So that was just pretty natural for us, is this particular part of the industry begins to
now embrace. I mean this is a late adoptor to eCommerce activity in terms of industry segments that
are out there. But as weve talked in the past, its a gigantic industry that probably will never
see the type of adoption percentages, penetration percentages that you see in technology or travel
or music, where those industries are maybe more than 50% of the penetration rate today, but the
industry size is so large, it is practical to think in the next decade that these industry segments
could approach 15% or 20% penetration rate, which would make them larger industries overall than
any other ones I previously mentioned.
<Q Mark Argento>: Great. Congrats on a good quarter guys. Thank you.
<A Mark C. Layton>: Thanks, Mark.
<A Michael Willoughby>: Thanks.
Operator: Your next question comes from Marco Rodriguez of Stonegate Securities.
<Q Marco Rodriguez>: Good morning guys. Thanks for taking my question.
<A Mark C. Layton>: Hi, Marco.
<Q Marco Rodriguez>: I was wondering, if you can first talk about the investments youre
going to be making in the first half, you did a nice job of providing the highlights as far as
where the money is going to be spent. Just wondering if you could perhaps quantify those dollar
<A Mark C. Layton>: A lot of this is going to be attracting cost of goods. So you wont
see it from an SG&A standpoint to speak up, Marco, but let me let Tom give you more highlight
<A Thomas J. Madden>: Okay. It would be a combination of cost factors, facility cost,
people cost that are going to be involved with this and especially in the first part of the year,
as we start ramping up some of the new clients and put in place some of the infrastructures for the
long-term initiatives, both for this year as well as for years going forward. The total amount of
those investments is probably in the $2 million to $3 million range in total across all of the
different geographies. In addition, we do have certain costs that were previously incurred by our
eCOST business operations that are getting reallocated to our PFSweb operation on a going forward
basis for certain things like allocations of no operations or Memphis facility and that type of
stuff. So you