Replies to post #77263 on Capstone Companies Inc (CAPC)

[greasemonkeyshoes]

P/L of the smart mirrors..............
Per unit(Direct):
cost $250 FOB China
freight and handling $50
tariff $20
packin/shipping $20
delivery fee $30
reserve for warranty $10
reserve for return $30

Logistics(part of indirect):
customer service $10
sg&a $100 (assuming 1000 per month)
or
$520

that is
15% margin
-10% ADVERTISING spending
we have a 5% or $30 net without any impairments.

My take:
All risk and little reward.

Concern:
Copy cat on the prowl
tariff go from 10% to 25%
.......
.......
BUSINESS MODEL IS FOR THE INTERIM,IF NOT,IT IS DEFINITELY FLAWED.
OR
THINK OF IT,THE HORSE HAD NO CHANCE,BASED ON THE PROBABILITY I AM AFRAID.