Replies to post #947 on Growers Direct Coffee Co. Inc. (fka GWDCQ)

[hawks5999]

I may be completely wrong in all these calculations, as I'm WAGuessing on some of it. Other information I'm pulling from company reports and other internet sites. But here goes:

In a company report Coffee Pacifica (at the time) indicated that a container contains 300 60KG bags or roughly 40,000 pounds.
http://sec.edgar-online.com/2004/03/12/0001056520-04-000011/Section2.asp

I can buy ethiopian green beans from a wholesaler at around $4/pound. But let's inflate that a little to be $6/pound as I've seen them as high as $7/pound and GWDC only goes for premium right?
http://ourcoffeebarn.com/wholesale/product_info.php?products_id=68

This is the wholesaler who has margin on top of the importer. But let's assume weak margins of 5% just for the sake of calculation. At $7 with 5% margin, the price paid to the importer is about $6.50.

From the 3/31/08 10Q (where is the July 10Q by the way, anyone notice?) GWDC is generating revenue at 25% margins over COGS (closer to 33% in previous Q, what happened?). So given $6.50 as a sale price, the COGS price $5.20/lb

So, taking these really WAG numbers:
$5.20*40,000lbs=$208,000 which produces a gross margin of $52,000.

So to answer my own question, I guess it's closer to $200k but generates $52k-$68k per container. So, real, you are right that coffee is not cheap.