Replies to post #116909 on PCT Ltd (PCTL)

[Evaluate]

If they have a daily 10,000 gallon capacity, I would assume that they generally produce and ship less than this on most days. Simply, running manufacture capacity at 100% means your missing out on sales and not keeping up with demand. You have to have reserve capacity for big orders etc. So, I would assume some fraction of 10,000 gallons is sold on most days.

Possibly.

Do you think this is a realistic scenario?

Instead of manufacturing an average of 10,000 gallons daily (= "capacity"), they run an average of 2,500 gallons daily?

2,500 gallons/day
x $8/Gallon

Equals $20,000/day

Per year (exclude weekends/holidays & equipment maintenance):
say 200 days/year

200 x $20,000/day = $4 Million/Year

(which is the same amount as what Gary mentioned in recent podcast as a minimum expected level of annual sales).

[skitahoe]

I would hope that the producer is designed to keep producing while to operator can take on other tasks, like selling product. I would hate to think that each time a customer came to a distributor the operation must be shut down to wait on the customer.

I suppose a big part of the business would be having the tanks to hold bulk capacity permitting production of liquid while tending to other matters. The key is maintaining the quality of each batch of fluid, hopefully it doesn't require constant attendance while it's running.

Gary