The NEO|SO Bulk Road Salt Program

A key element of selling into the public sector is year-over-year customer retention. NEO|SO launched a bulk road salt program in 2007 with 21 Participants who committed 85,000 tons of salt collectively (more than $3M in supplier revenue). The program received excellent customer feedback and 100% of last year’s customers committed to buy through the bulk road salt program this coming winter.

NEO|SO’s 2007 bulk road salt program featured dramatically improved terms and conditions versus what customers typically have been able to achieve on their own. A key element was a provision that required the supplier to stockpile salt. As a result of this provision, all of NEO|SO’s customers had salt during the last major storm in early March 2008; no other consortia had salt available for its members.

NEO|SO began marketing the 2007 – 2008 program in late May. With the retention of 100% of last year’s Participants and addition of new customers, NEO|SO has grown the program by more than 50% year-over-year in terms of both committed tonnage and revenue.