Replies to post #31699 on Quantum Materials Corp. (fka QTMM)

[BigE1960]

With specialty materials the split tends to be 80/20-90/10 unless multiple manufacturing sites or different product lines give reasons to deviate from the norm. One becomes the main supplier and the other a qualified second source. Suppliers use of volume discounts often drives this arrangement as the end-user maneuvers to minimize their costs and leverage the competitive situation. Obviously, it is prefered to be the larger player as the same level of service is usually expected of the #2 and yet they lose out on the benefit of scale both in manufacturing and in the ability to amortize the cost of people resources over the larger denominator, i.e., sales revenue.