Lynch Sales Company

Bedford Interiors

January 8, 2004

Mr. Gordon Zuliani
1769 St. Laurent Blvd. Suite 247
Ottawa, Ontario K1G 5X7

Dear Gordon:

Furniture Disposal-Renovation Sale

Gordon, we first spoke about running a sale in May 2003. After our discussion, I decided that I would not need you and Daniel Lynch to do what we have done for 56 years. What could you possibly do that we could not? Needless to say, we spent $40,000 on advertising and promoting our sale. We were a complete failure! The sales did not come!

In November, I went through the package you had sent and re-read the many letters you provided. Once again I said to myself, “He probably asks for the letters, and people would never give him a bad reference.” I overlooked these thoughts and called you again to talk about running a sale for our store.

We decided to start the sale after our November anniversary sale. I had mentioned to you that December was historically the worst month for furniture sales for our store. You confidently stated that your system worked and told me not to worry.

The day you arrived I gave you control of the store, thinking, if he is so confident, let him prove it and let him run the sale his way. I started to worry when my staff went from 13 to 27 for the first week of the sale. The first morning erased these worries, we had people lined up at the door, we had cars and trucks loading at our shipping doors and we had deliveries for two trucks. I was amazed to see the action and happy you had complete control! I thought this can not continue, tomorrow would be different, then I remembered, we were not open to the public yet, we were only seeing clients that had received the personal invitation.

Our sale was held over 4 weeks, which included Christmas and New Years, a total of 21 selling days.

What we gained from you and Daniel Lynch Sales:

1. We ended up selling 18% of our year during these 21 days.
2. We lowered our inventory a little over $200,000.
3. We succeeded in making the required space for our warehouse to move into the store. (A savings of $48,000 per year.)
4. The extra sales people you found for us were excellent; we actually were able to keep two of them on staff.
5. The lessons you taught us about advertising enabled us to let our advertising agency go, we are doing our own ads and at a reduced rate. (A savings of over $21,000 per year.)
6. Our cash flow has improved dramatically.
7. Negotiating with clients on pricing has become a new art.
8. Our mailing list has grown by close to 600 clients.
9. The contacts we made for printing and mailing to different postal codes will continue to generate new clients and help make future sale periods successful.

I look back on my first decision to try to do the sale ourselves, and regret we did not listen to you then! Your system and methods work so well, we cannot understand why we did not use you earlier.

Thank you, for maintaining our good name, our client base, and our reputation in the community! You really are a professional!

Peter K. Neville
President