Replies to post #72456 on Winning Brands Corporation (WNBD)

[just_an_ant]

It is extra apparent

little ants got ya worried, be crawling all over you in a bit

Gross Revenue = $4.00 - $4.50 per 32 oz bottle (that would be wholesale, the amount sold channels (direct to store/ wholesaler/ distributor)

Cost of Good Sold = $2.00 - $2.25 per 32 oz bottle (this is amount paid to Surefil for all production costs of the bottle and its contents, WBC chooses to use higher quality ingredients so it performs to intended level of quality in removing said stains listed on label, unlike many competitors (labeled in such ways, but not actually perform in such ways)

Gross Profit/Margin = $2.00 - $2.25 (or approximately 50% of the wholesale price; or 25% of MSRP)

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So what does that say; well in the past if they sold 100,000 bottles, they would only report $400,000 in Gross Revenue, have to pay Surefil approximately $200,000 and be left with $200,000 in Gross Profit.

That amount not enough to cover Advertising, sales/marketing, salaries, rent and other overhead costs.

But if they can penetrate larger markets (aka. USA which is 10x the size in population as Canada) - as well as has more big box stores (Home Depot, Lowes, WalMart, etc)

They could sell 1 million bottles. That would be $4 million in Gross Revenues; and $2 million in Gross Profit. More then enough to cover sales/marketing, rent and other overhead costs; advertising maybe, depends upon the types of campaigns being run.

But we've only discussed one product and basically one country (USA) and limited it to only 1 million bottles.

The other week before IGA - (Australia NA) or even Lowes (USA NA) - WBC had gross revenues of $65k in one week. Divided by $4.00 that is 16,250 bottles (assuming sales driven by one product). They've had some weeks lower and some higher; if we said average was 15,000 bottles over 50 weeks (keep math simple, if haven't lost ya already) that would be a pace of 750,000 bottles a year (without Lowes or IGA or any other NA).

That would be $3 million in Gross Revenues (foreward looking at that pace), at point of Growth Phase in business plan.