The numbers may prove to be much more complicated than most people think. The average cost for testing ranges between $130-$160 for certain test and others range from $335-$355. These numbers represent current pricing in Oregon and California.
What most people may not realize is that the majority of the testing will be in that $130 to $160 range so it is difficult for us as investors to estimate Revenues and profitability for these labs. And I'm looking for these numbers to be accurate.
One of the more complicated aspects regarding this particular type of analytical testing and prifitability is that it is very expensive from an equipment standpoint and the reagents that are required for the different types of testing processes. Add on top of that license costs, accreditation costs, facilities costs, insurance costs, large supply costs, management information systems costs for tracking, payroll, IT, and marketing, and numerous other costs leaves a huge spider Web of trying to get numbers right on profitability. So anyone who says getting these numbers together should be easy and straightforward needs to open their eyes to the magnitude of a laboratory setup and system.