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es1

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Alias Born 07/13/2009

es1

Re: BOOYAHH! post# 45488

Thursday, 07/05/2012 3:32:02 AM

Thursday, July 05, 2012 3:32:02 AM

Post# of 278721
I agree they are looking for a partner Bull. I disagree on the definition of partner as being used here.
If KBLB was just a silk supplier they would sell silk to anyone who called. I think we both agree that this is not the plan at all.
But IMO Partner = distributor.

Maybe I am misunderstanding what people are meaning by partner. I do not see us just sending our product(eggs,cocoons,silk)to someone at no charge and having them send us a check if they sell some.
I see us producing our product as far as cocoons and shipping them to our "partner" who will pay a wholesale price for the silk. They can make the silk into whatever they want it made into and sell it to an end user.

I could actually see a partner who does all of the labor for KBLB and KBLB pays them for the service. Kim could sell the end product to whoever wants it and pay the processor a "royalty"

I just think most views of the transaction are putting the customer/distributor/partner in the drivers seat and that is not how anyone would do it.

The last option would be if our customer wants a special "blend" and we ship the product to the company that our customer will have doing the processing.
We do not pay for processing and do not get paid for the processing in any way. We only get paid for whatever we shipped.

The last option is what I would prefer. IMO that would be the highest profit margin and least risk.
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