Domingo Silvas is a very successful business executive. He took a company that had revenues of $1,000/month to $10M in its third year. Under his expert management, Aquagold could become the turnaround story of the year.
When you consider rolling out your product, you do a cost- volume-profit analysis. The object is to maximize your profits. So you test the market to see what price the market will bear and determine to what extent sales would increase at lower prices. You also have to determine your costs, fixed and variable, because the cost of producing something and getting it to market should decrease per unit as the quantity is increased. A careful study will determine whether the rollout of a particular product in a particular market at a specific price will prove to be a profitable venture. Then you will be able to determine at what price and in what volume profits are maximized.
Rest assured, the management of Aquagold, including Domingo Silvas and York Tang, are not going forward blindly. They have tested the market and know exactly what to expect. I'm sure they could tell you their projected sales and the estimated profit from sales for the next twelve months. But they are not going to announce those figures. Instead, they will present financial statements at the end of each quarter
and become fully reporting because that is how a professionally managed corporation operates.
Let's remember, this is not a fly-by-night pinksheet company looking to exploit unsuspecting investors. This is a serious venture with professional management that is making its move on all fronts to become a powerful player in the premium bottled water industry. It all takes time, but we have already begun to see the signposts that tell us where this
company is headed.
I think the answer to your question is that Aquagold will be setting its prices according to what the market will bear. Its products will be competitively priced, in line with the pricing of other products offered in the same category and in the same targeted market.
