RE:RE:PYR Plasma Torch competition / profit margins..EXCELLENT!racetrk6 wrote:
Thanks for the info. However , I don't believe our profit margins would be correct.
He says "ESAB and Komatsu make torches for plasma cutting that have nothing to do with our torches: not the same type of technology (transferred arc vs. non transferred arc, much lower power than our torches."
So the torches at 20% profit on a million is not the same for these torches.
Lets say 15 percent profit margins would be 450K per torch. 20% would be 600K.
Which is likely reasonable.
If you belive people are making 60 plus percent margin would you be buying anything from them? At the end of the day business is about $$ and being competative. If they clients
tought they were making 60% that would be the first point of negotiation. Since they are buying 500 at a time.
I think you also have to take into account, how much the company purchasing the torch is going to save. No matter how high the profit margin, the savings in dollars, plus reduction in GHG, is going to offset that. Jmo