Steeped Tea is a Canadian company that sells a growing line of tea products through consultants who hold home tea parties across Canada and recently the US. The companies direct sales business model was successfully pitched on the popular TV series Dragons Den, it has since grown over three hundred percent. The company now has over 3,000 consultants in Canada promoting and selling tea products, while another 200 consultants have started working in the US after a risky decision to expand into the American market.

The driving force behind Steeped Tea’s success is the direct business sales model. By having consultants sell directly through host tea parties, the company has an absolute cost advantage over competitors who normally sell to grocery retail chains. Not only do the tea parties cut costs, it allows the hostess’ to form relationships with customers who provide feedback about the teas. Since expansion decisions are made off this customer feedback, Steeped Tea has grown profits from expanding to new products by better satisfying its customers.

Source: http://www.thespec.com/news-story/4142683-dragons-fired-up-over-company-s-success/

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