revenue is one thing put profitability seems elusive.
on page 10, steve states "Eco Red Shield is only fractionally higher that the raw lumber it now sits next to in the stores - only $3.79 for a 2x4 versus $3.59, making the choice easy for those who understand the added value of protected lumber."
for such a small cost difference, the consumer would be foolish to not choose Eco Red Shield.
$3.79 is only 5.571% more expensive than $3.59. if a truck of lumber is $356 per thousand board feet according to the NAHB, then an average truck of 30,000 board feet would cost $595 more than an uncoated truck.
can ECOB truck it to their own coating facility and back to HD for under $595? I would bet that it costs at least that for trucking one-way. there has to be extra transportation costs to and from the coating facility versus shipping directly to HD.
what is the cost to unload a truck of lumber at the coating facility? labor and the fork lift ain't free. $50?
what is the labor cost to coat that truckload of lumber piece-by-piece? 2 guys, one feeding into the red bath and one stacking, plus packaging, strapping, and painting the "ECO" logo. $25/hour x 2 guys x 8 hours? $400?
what about the cost to staple a UPC label on the end of each piece? $25/hour x 1 guy x 4 hours? $100
what does it cost for the red juice to coat that truck? $200? $400? $600?
something does not add up.
the shares that i bought at $0.007 are doing awesome! the problem is that i had averaged down from $0.14 and $0.07. i am averageing about $0.072 now, all in.
i am praying for $0.08 per share soon so that i don't have to worry about the numbers above. something about that $0.20 per piece just doesn't make sense. gl to all.
