SEC Filings Section 16 Filings Only
 
PFSWEB INC filed this 8-K on 03/28/2011.
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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 that’s 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, let’s say primarily in lot control that we obviously don’t see in fashion or in technology. Technology, you might see serial control that’s 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 we’ve talked in the past, it’s 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 you’re 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 amounts?
<A — Mark C. Layton>: A lot of this is going to be attracting cost of goods. So you won’t see it from an SG&A standpoint to speak up, Marco, but let me — let Tom give you more highlight there.
<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

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