InvestorsHub Logo
Followers 6
Posts 1653
Boards Moderated 0
Alias Born 08/03/2010

Re: doggone post# 46758

Thursday, 10/28/2010 4:57:27 PM

Thursday, October 28, 2010 4:57:27 PM

Post# of 58002
at the end of the day someone needs to do the math, how many units are they actually billing out. Under what terms.
what is the actual fully burdened operating margin on each unit?

if they have in fact shipped 10,000 units (the language being used is somewhat hazy) if they have shipped these units AND BILLED THEM, what have been the costs incurred?

What have they sold them for..net net..

and what did they cost?

with the hazy financials one has to resort to some industry standards. Retailer is making at least 45% to as much as 65% margin.

So something retailing at $40 is actually being sold at $15 to $18

brokerage commissions are in the 10% +/- range.

Freight is in the 4 to 6 % range

You can assume that trade coops are in the 9 to 10 % range.

Effective Cost of money (vis-a-vis PO financing) is likely to be 7 to 9%

you do the math.