Replies to post #59176 on Electronic Cigarettes International Group Ltd fka

[Bjdev89]

Cogs does not include marketing/distribution or sg&a. It's the product costs. Q3 was over 80% of the sale price just paid costs leaving only 20% per unit to go towards interest, sg&a, marketing, distribution/warehousing, etc. this 80% is up from about 40% Q1. The business model is a failure and they go out of business every day of the week if their cogs sits at 80%. This percentage will definitely go down and we should all look forward to it.

[hawkeye612]

I believe you are mistaking an increase in the cost of goods, with cogs as a percentage of sale. I expect ECIG's cost of goods to increase, that is normal when sales increase. What I am interested in is whether cogs of goods increase as a percentage of sales or decrease. That is what is important to me at this point, also regardless of expenditures on new products that is separate from the COG's, and would appear on another part of the balance sheet.