In response to a question regarding whether profits were up or down for 2002 versus 2001, all of the respondents stated profits were up for an average of 16%. Ninety-two per cent of the distributor respondents expect normal or above normal growth over the next 12 months.

Regarding unit volume of demand compared with the same quarter last year and the previous year, 54% said that demand for their company's products has been rising. Thirty-eight percent said that demand had remained about the same and eight percent said that demand was falling.

On the Employment front, compared with the same quarter last year, 30% of distributors stated that their company's employment had been rising. Sixty-two percent said that their employment was staying about the same and eight per cent said that employment was falling. Compared with the previous quarter, 31% said employment was rising and 69% said that employment had remained the same. Wages and salaries over the past three months were rising for 36% of the distributor respondents and 64% stated that they had remained the same.

When asked what measures they planned to introduce that might have the most impact on their profits, distributors had a variety of ideas. Some of them included the following suggestions:

• Expand Geographically
• Developing more sales staff/programs
• Data Warehouse-software too to analyze and measure, etc.
• Higher Sales
• Work on profit margins 1% at a time
• More aggressive sales management
• New costing system
• Drop bottom 10% of vendors
• Developing integrated shipping programs (reduce freight costs)
• New marketing programs
• Fewer back orders
• Increase gross margins
• Control expenses
• Reduction of overhead costs
• New commission system
• Completion of web site for placing orders
• Reduce administrative through automated efforts
• New commission programs
• Selling higher margin items
• Creative sales programs
• New WMS
• Reduce inventory outdates