Replies to post #30520 on e.Digital Corporation (fka EDIG)

[richardosborne]

Tinroad.....he has no idea what the margins are for selling electronics utilizing the internet. He is forgetting that a typical company selling to retailers, sells at 30%-60% of the suggested retail price. Excluding other factors, that difference falls to the bottom line.

[But Anyway]

Zack, you are ignoring a basic fact... manufacturing electronics has always been a thin margin endeavor, whereas reselling of electronics does not have to be. Admittedly, high volume retailers such as BestBuy, Circuit City, etc operate on a low margin/high volume basis. However, an operation such as the Edig Store has miniscule overhead compared to the aforementioned brick and mortar vendors. A 28% margin is in no way atypical for etailers.

Thank you for the response however the overhead of e.Digital's website is only one component of their cost function.

(Cost of goods sold) - (Reveune generated) = (Gross Profit/Loss) - (Operating Costs) / (Revenue generated) = Operating Margin

EDIT: Any costs associated to maintaining the website is accounted for as a operating expense and not factored into the cost of goods sold.

[Trillium 7]

I believe our margins on Lanier where manufacturing was involved was 28%. Then Lanier took a margin on top of that. The same is true with Fugitsu 10. In this case we should be able to realize both the margin from manufacturing and the etail margin as well. Any way you cut it, it's got to be better than 28%.