Let's do a little hypothetical revenue estimate :)
Lets take the Timothy's company for example. According to their website, there are approximately 36 franchises under their belt in Canada. Let's use the example that SS is providing a brownie as part of Timothy's standard branded prepackaged menu option. In this example, SS would provide Timothy's a box of 100 branded, individually packaged brownies per store, every two weeks. Because we are dealing with wholesale volume/pricing, as an example, let's say that each brownie costs Timothy's approximately $0.80 wholesale, allowing for a Timothy's markup of $1.70 for a store price of $2.50 which is the average price of a brownie.
Now, let's look at the math:
36 stores (boxes)
100 brownies per box at $0.80 = $80.00/box
36 boxes x $80 = $2880.00 every two weeks per 36 store delivery
52 weeks a year / every 2 weeks delivery = 26 deliveries a year per store
26 deliveries x 36 boxes = 936 total deliveries a year for Timothy's
936 deliveries x $80 box =
$74,880 on ONE product for ONE company.
To be honest - for individually branded products, I would imagine the cost would be a bit higher at about $1.15 per item wholesale, so the $0.80 is on the safer estimate.
I have no clue what their client list looks like, but I think it is safe to assume that there would be more than just one client per product produced, so let's just say 5 clients order this product on the same delivery basis. That would generate $374,400 on ONE product alone per year.
Again, hypothetically, let's say SS only produces 10 annually. If for example sake, we take the same delivery and production structure, that is a minimum of $3.7 Million.
Just some "food for thought"
