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Re: User-65225 post# 44899

Thursday, 02/26/2015 3:45:00 PM

Thursday, February 26, 2015 3:45:00 PM

Post# of 70075
That is not how business math works. Total revenues is not cash in the coffers. You have to subtract the manufacturing cost and all of the COGS (cost of goods sold) before you are left with NET profits (cash).

The odds of them making any net profits on the initial order is slim. This is how it is for all companies with products like this. Initial marketing could be millions, just to sell $750,000 worth of product.. Then after the products become known (via marketing/word of mouth), profits/margins improve and they could POSSIBLY swing into a cash flow positive position.
Not millions. Joe Abrams is already on board, his name and credibity is WORTH millions

This is important stuff to understand if one wants to make money in the markets and/or run a business... Cash is KING at these early stages. Its what makes/breaks a company.
Yep like I mentioned, If each unit sells for $150 they will have $750k cash. Obviusly some of that will not be pocketed for reasons you mentioned. However, you nor I know how much will be left over.
PS: No way are they going to have 5000 pre orders. Only investors know about it and there has been no credible reviews... Initially consumers will be skeptical and not willing to fork out the cash for this product. Lets be realistic
Maybe you haven't heard of our competition, Emotive's device which looks like a pelvic bone and will have onlookers trying to figure out what science experiment you're apart of, is actually 2x the price of the SYNAPSE. You may want to look and see how pathetic their pre-order sales have been.