CPS Unveils Its Unique Solution With Demonstrated Financial and Environmental Benefits With All Five US Facilities Open



DEER PARK, N.Y., Jan. 14, 2011 /CNW/ -- Consumer Product Services Group, Inc. (OTC Bulletin Board: CPSV) announces that all Five US facilities have opened and it has begun implementing its 'Single Source Solution' business model which includes reverse logistics of returned items, remanufacturing, recycling and re-selling of Major Appliances, Small Appliances, Outdoor Power Equipment (such as Pressure Washers) and Floor Care Products (i.e. vacuums). The company's capabilities include the complete repair of microwave ovens, refrigerators, washing machines, dryers, power washers, grills, coffee makers, vacuums, heaters and air conditioners as well as many other large and small appliances.

Darren Krantz, the Company's founder and CEO, had this comment regarding the company. "We have built a model that responds to the environmental concerns caused by the improper disposal of millions of items returned to stores annually and to millions of dollars in fines that are being levied for illegal dumping into landfills." The Company's business model with five strategically placed US facilities is a solution that is a win for all parties; the manufacturer, the retailer and for CPS. "We are the ultimate green recycler. We have built and tested and are executing a new model, one designed to allow manufactures to recapture millions of dollars that are now lost employing old methodologies for the handling of returned items."

It is in the regulatory arena that companies are most exposed to new fees, liability and rules that will drive internal costs. This can be seen in e-waste rules that numerous states have adopted. New legislation emerging from some states regarding "extended producer responsibilities" will shift liability back to the original producer and not the retailer performing (DIF) destroy in field. Similarly, companies are understanding that there are new revenue opportunities, engineering quality reporting, improved velocity, cost reduction as well as product controls gained from managing the reverse supply chain through a third party.


    Traditional methods of resolving consumer returns had been limited to:
    1. The outright sale of the damaged goods to Liquidators at pennies on the
       dollar, thus relinquishing control of the product and often resulting
       back door secondary returns, diversion and price erosion.
    2. Destroy in Field (DIF) credit to the retailer by the Manufacturer,
       again lost control of the goods, damaged brand image, heightened
       liability issues and allowed for significant and inevitable back door
       resale of these products to Liquidators or worse alternatives that
       affected first channel sales.
    3. Return to Manufacturer, which represented the best opportunity to
       control the supply chain, but drives secondary cost associated with
       transportation and often additional fixed costs for warehousing,
       handling and refurbishment, resale and redistribution at a manufacturer
       specific level.


Mr. Rick Hamilton, the Company's President, expanded by stating, "For manufacturers the endeavor to refurbish or remanufacture internally, the infrastructure and physical plant costs become prohibitive in maintaining the (ROI) return on investment. Manufacturers are not in the business of secondarily remanufacturing goods. It is not a core competency. Recovery rates are typically low, quality varies widely, specific data requirements are not generally captured and secondary sales channel relationships are not extensive, resulting in lower recovery dollars. In addition, manufactures and retailers are looking for "single source" solutions that leverage the reverse supply chain on an end to end basis. Single source require comprehensive North American facility coverage, not just regional or single sites. This is particularly important due to the integration of data required. Flexibility, scalability as well as transparency are the hallmarks of a successful (RL) reverse logistics strategy. CPS has built and is executing a profitable one stop model to resolve an issue that has been vexing the manufacturing industry for decades."

CPS has developed a complete end to end solution to address each of these current operational strategies on a customized basis and improve the results for both the Manufacturer and the Retailer, with each gaining the knowledge that products are tracked through the process, thus benefiting from the ultimate form of Recycling, which is providing a second (and third) life to more than 80-90% of the products processed by CPS.

CPS specializes in Major and Small Appliances, Outdoor Power Equipment, Floor Care, as well as a host of other consumer products. The Product Categories and Brands associated within the scope of business CPS has targeted account for greater than $50B in annual sales within the retail channels, from which 1-8% of units have traditionally managed to make their way back as damages or consumer returns. This includes more than $500M at wholesale of Outdoor Cooking, Major Appliances, Small Appliances, Pressure Washers, Air Conditioners, Heaters, Vacuums, Power Tools, Compressors, Welders, Coffee Makers, Lawn Equipment and More. Without CPS processing, millions of these products make their way back to retailers as returns, are "destroyed in field" by Manufacturers, then sold to Liquidators or end up in landfills every year.

Mr. Krantz, the Company's CEO, added, "CPS has invested in a highly skilled and qualified blend of executive, engineering and operational talents to solicit, develop, contract and execute these programs with manufacturers and retailers. With decades of Engineering, Manufacturing, Supply Chain, Warranty Management, Merchandising, Retail and Sales background working in executive posts within multi billion dollar National and International companies, CPS has acquired the talents, contacts and knowledge necessary to position CPS as the leader in a business model not available from any other existing company."

CPS provides solutions for Engineering Quality Assessments, Defect Analysis, Corrective Action Reports, Production Line and Single Unit Remanufacturing Capability, Secondary Channel Sales Management on a North American Platform that leverages 5 Strategically Located Full Service Facilities located along the best transportation lanes servicing the majority population base across North America.

"Demonstrating value, competitive advantage and flexible financial solutions has allowed CPS to capture Marquee Brands and we have barely scratched the surface," stated Mr. Rick Hamilton, the Company's President, who joined the Company in 2009 after a successful career which spanned 28 years working with major manufacturers selling product into retail channels. CPS has dozens of potential clients in the queue for pilots and program development. "I became attracted to CPS because I saw an industry that is fragmented with Liquidators, Transporters and scrap dealers whose combined efforts resulted in bringing less than 30-50% in recovery. CPS has consistently demonstrated the ability to achieve 80-90% recovery to high quality levels "comparable to new," with the added benefit of proprietary parts recovery solutions that enable CPS to show manufacturer's recovery approaching 95% based on parts expense and supply chain costs for new parts or new unit replacement."

CPS is a member of The Reverse Logistics Association (RLA); and is a premier member for Manufacturers and Retailers concerned with the environment and with company asset protection and is traded under the symbol CPSV.


    Forward-Looking Statements


This document may include statements that constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect", "anticipate", or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's ability to secure capital to fund current operations; future trends in the returns business; financial, environmental or remanufacturing difficulties affecting the Reverse Logistics and Remanufacturing programs; uncertainties surrounding estimates of product returns; and other risks associated with the Company's business. By making these forward-looking statements, CPS undertakes no obligation to update these statements for revisions or changes in the future.



SOURCE Consumer Products Services Group, Inc.

For further information: Consumer Products Services Group, Inc., +1-631-492-2500

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Consumer Products Services Group, Inc.

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