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superman187

05/15/12 7:02 PM

#27090 RE: Hamham1 #27078

Remember they are paying for manufacturing, storage, labeling, and shipping. Much higher then 15%:. And 30million is out of the range needed, sorry. The majority of there products are currently manufactured in a 50,000 sq. Ft facility.
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general Outpost

05/15/12 7:12 PM

#27097 RE: Hamham1 #27078

I agree outsourcing is the key for a penny stock. A small upstart lacks $ and credit, it might be true at some point to manufacrure in house, certainly not at this stage. I would hope their $ are spent in product development and growth. The difference in third party outsourcing costs hopefully can be made up by a higher product cost at the retail level. It all comes back to the public embrance of the products. If their products continue to be well perceived, they can price accordingly.
A small company needs to keep it simple, and by not having overhead tied in property, equipment and plant production labor the leaner they are to use their limited capital for better use.