May / June 2006

Welcome to the latest issue of Nutraceutical News from IFS. In this issue you'll find our Case Study, which examines Dr. Michelle Copeland Skincare. As for our other columns, monitoring the impact of fulfillment costs due to fuel prices is discussed in the Fulfillment Notes section. In our Marketing column, we'll tell you about the value of testimonials and in this issue's Customer Service Corner we talk about studying your competition.

For more information about the content found here or about any of our products and services, you can always visit our website, www.ifssolutions.com. To share your feedback about this newsletter, please click here. To unsubscribe, please use the link at the end of this issue.

In this issue:

• Case Study: Dr. Michelle Copeland Skincare
• Fulfillment Notes: Are you continuing to monitor the way fuel prices impact your fulfillment costs?
• Maximize Your Marketing Effectiveness: The value of testimonials - Let your customers speak for you
• Customer Service Corner: Don't reinvent the wheel - Study your competition!
• About IFS: For More Information, Contact Us

With the Baby Boomer generation's obsession with maintaining a youthful appearance, it's no wonder the cosmeceuticals market - named for products representing a marriage between cosmetics and pharmaceuticals - is growing so quickly.

Dr. Michelle Copeland, one of the most prominent female cosmetic, plastic and reconstructive surgeons in the United States, has developed a rapidly expanding cosmeceutical skin care line. Her products - available through her website as well as through selected retailers and several shopping networks - improve appearance while delivering nutrients necessary for healthy skin.

Dr. Copeland's company has relied on IFS as its fulfillment center since its inception in 2003. Darlene Walley, Chief Operating Officer for the company and a marketing expert who works with entrepreneurs to build their companies, discovered IFS when doing an extensive search for the right fulfillment partner for an earlier client. That company, like Dr. Copeland's, had needed a combination of a "high touch" call center - with knowledgeable staffers to manage customer calls and process orders - that could also provide complete fulfillment services for warehousing and shipping. So as Darlene began work with Dr. Copeland's company, she chose to return to IFS and its high level of service.

"What I really value in IFS is that they have manager-level people as my contacts," says Darlene. "They have a high level of integrity since management expects a lot from them." She added, "We use them as an extension of our company and a very important one."

Darlene also noted that, as the company has grown and evolved, IFS has worked with them to support that growth. "The IFS team is very good about working with us on where the company is headed," she said. "They are willing to put the infrastructure in place to support that growth if it makes sense for their business, too. But if it doesn't make sense, they will let me know right away so I can plan accordingly."

Dr. Copeland's Skin Care Line has grown from just few orders every week to over a million dollars in sales since the company has been with IFS. That growth has come through individual web-based orders and retail store sales as well as through large shipments to several shopping networks. "We are so fortunate to have partners like IFS," said Darlene. "Having people you can rely on, as if you have personally hired and trained them over the years, is incredible, and so important to our success."

As we addressed back in our July/August 2005 issue, we've all been feeling the impact on our wallets when we fill up our cars. Gas prices continue to be at or near record highs. How does that continue to impact your business? Are you doing what is necessary to deal with those extra costs?

At IFS, we closely track our shipping expenses. As of last July, both UPS and Fed Ex had increased their fuel surcharges on all ground shipments to 2.75%. And Fed Ex had announced a staggering 12.5% surcharge for its air shipments.

Fast forward to today. Both UPS and FedEx have again increased their prices by adding an additional 5% fuel surcharge to their existing rates.

The good news for our nutraceutical clients continues to be that the U.S. Postal Service had not added any surcharge to its shipments. And because we ship via Priority Mail or First Class Mail for most of our nutraceutical clients, they have avoided the extra expense.

Another good thing for our IFS clients is the fact that we ship from the very center of the United States. Because we are located in the most cost effective part of the country when it comes to shipping, the recent 5% additional increases by UPS and Fed Ex gives IFS clients a competitive advantage. In fact, check out our website's comparison of shipping rates at www.ifssolutions.com. You'll find a link at the bottom of the home page (click on "big savings on shipping costs") that will show you that Kansas City is the most cost effective city from which to ship among the eight cities cited.

So, remember to monitor all your costs related to fuel charges. And - if you're not already doing so - consider having your fulfillment done in the Midwest. As you monitor the impact on your bottom line, you'll be glad you did.

Wouldn't you rather have your customers tell others about how wonderful your products or services are than saying it yourself? Using testimonials from satisfied clients or customers is a great way to give your company credibility and boost your reputation.

Think about it. You try a new restaurant because you've heard your friends rave about it. And you shop at stores that your friends recommend. The power of a "testimonial" is enormous! People want to do business with companies they've heard good things about.

At IFS, we're big believers in the power of testimonials. In fact, most of our business comes from clients who have said good things about our people and our service. Just look through our website, www.ifssolutions.com. We like to let our customers share their experiences with others!

This marketing/PR tool allows new or potential customers to hear the opinions of others who have experience with your company. So how can you use testimonials? Many ways:

• Incorporate them into your marketing materials. Every brochure should have at least one testimonial included.
• Use them in your direct marketing efforts. By including a testimonial in your personal letters to prospective clients, you'll immediately get many otherwise uninterested readers to take notice.
• Sprinkle them throughout your website.
• Offer to let prospective customers call existing clients who have offered testimonials. Satisfied clients can often be better sales people than you and your own staff.

Just remember to get permission from your clients before you use their testimonials. Either ask them to write a short quote that you can use, or ask them if it's all right to share with others something they have already written.

IFS is a world class, full service fulfillment operation with a track record of success. A woman-owned business, we proudly serve some of the country's most respected corporations. With a special expertise in the fulfillment of nutraceuticals, we can help you run your nutraceuticals business more efficiently and more cost effectively.