They do much more than just "sell the sauce" and then "the owner does everything" - they have some affiliates were they get smaller margins on who they "almost" just sell the sauce to- and split profits via affiliate agreements-yes
Anthony Vinole Plant Manager / Salem, Oregon- he has been responsible as a plant manager for Colton-then at the Salem Facility overseeing and setting up operations
Mr. Vinole graduated from a technical school with an Associate's Degree as an Electronics Technician. His career began in the semiconductor industry before moving on to work for the Department of Defense. After meeting Mr. Conboy and accepting the job in 2009 with Eco Building Products, Anthony was quickly promoted to Equipment Engineer after 6 months. One year later he became the Production Superintendent of Colton. Mr. Vinole's new promotion takes him to Salem, Oregon where he will open a new Eco facility and direct operations as Plant Manager.
so that's an oversimplification in many areas- I've spoken to several and discussed and learned how these deals work and especially the dynamics of the Home Depot deal.
the "sauce" probably wouldn't cost much more than $30 per thousand board feet or $9.09 per gallon based upon 3.3 gallons per thousand board feet
If Home Depot is massive and have already begun to order lots of wood- and Eco is coating it- and HD supply's the wood and ships it by railcar you assume close to nothing is in the spread? I'm very comfortable with that portion and you can learn it over time that it's not a working at a loss type deal as you call it.
More than just what's in prs its what's in Q'S & K's- I do agree with that and that was my early concerns but with a large very supportive partner so much can change- Eco can run much much leaner going forward and simply coat- the exposure they will get now will become huge and that I believe you are underestimating how a better alternative product can quickly gain traction since HD arrived.
The company talks a little about some of these transitioning business knowing it has to change to make this become a large scale operation.
"Moving forward with the Company's newly focused supply only operation; a lean, reorganized and restructured company has effectively transitioned from its previous business plan. Gone are the days of turn-key, labor driven, red buildings; we are now well positioned to support the supply chain side of the industry by way of coating services and special orders sales"
"Moreover, the Company is active in discussion with several US-based financial institutions capable of providing funding to support Eco's need to ramp output in all facilities. The need for automating existing production equipment is now prevalent more than ever as evidenced by the Company's Salem coating facility operating at full capacity. While the need to purchase high-volume equipment represents a significant financial requirement, this strategic move will not have any effect on the manpower requirements needed to perform a smooth, full-service operation. The new, high-volume, automated lines will become operational and be positioned next to current production equipment to safeguard against potential operational stoppages. Furthermore, this new higher volume equipment will allow for significantly higher production output to meet the anticipated demand"
I tell you what If Eco doesn't show me some more substantial growth changes in the next 2 months I will close out my position but I believe the first HD locations is just the beginning and these next 2 months are what transition Eco into a new company going forward