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Re: mlebo post# 20134

Tuesday, 02/04/2014 9:01:21 PM

Tuesday, February 04, 2014 9:01:21 PM

Post# of 42188
Realize the quote you received was after the pellets changed hands a number of times and suffered markups in price. Buying small quantities has a huge impact on price, along with the manufacturing plant's overhead where the pellets were made. Take a look at the document I posted, and you can see why the price can vary greatly. Based on KGET's purchase order, they are receiving $170 per tonne. If they are purchasing the pellets from a US source for the average selling price of $125, then they are netting $225K monthly or $2.7M annually for simply coordinating the transaction and delivery of the pellets. I would say that is pretty good revenue for serving as the middle man.