Within Canada, for example, Home and Leisure Group Limited in Brantford had introduced a line of recycled plastic chairs to augment its line of cedar chairs. In the United States, two of the larger suppliers of plastic outdoor furniture, Casual Living Products LLC in Pennsylvania and Poly-Wood in Indiana offered an extensive product line and operated at significant economies of scale. Sales of recycled plastic chairs and other outdoor furniture were primarily made through distributors or direct to small independent dealers, including swimming pool dealers, outdoor furniture specialists, cottage outlets and landscape nurseries. In total, these retailers offered significant geographical coverage but did not do a great deal of advertising and could not carry large amounts of inventory. Until recently, no national retailers had taken an interest in high-quality recycled plastic furniture. However, Costco had been looking at adding a few of the more popular products to its offering for next outdoor furniture season. Because Costco operated on much lower margins than most other retailers, its buying power could represent a significant change in the retail price. COMPANY HISTORY In 1994, Bailey started producing wood furniture, but quickly realized that the saturated market dominated by larger integrated companies left little room for a new start-up. Later that year, Bailey was introduced to new type of lumber made from recycled plastic. This new material not only offered an opportunity to differentiate Bailey's product but also a great way to divert materials that would otherwise end up in landfill. Bailey explained: Since 1994 when we first began manufacturing our own line of outdoor furniture, our mission to create beautiful and functional designs from recycled plastic has steadily increased in scope. What ha led to include orld