RE:RE:RE:RE:RE:RE:RE:Flawed payment model? Hey Iscfa, just trying to understand the cost and margin a little more here.. but wouldn't selling it at that price only represent 30% gross margin? 2857-2000=857 / 2857=.30 x 100=30%. Please correct me if I'm wrong thanks!
To calculate gross margin subtract Cost of Goods Sold (COGS) from total revenue and dividing that number by total revenue (Gross Margin = (Total Revenue – Cost of Goods Sold)/Total Revenue). The formula to calculate gross margin as a percentage is Gross Margin = (Total Revenue – Cost of Goods Sold)/Total Revenue x 100.
lscfa wrote:
My guestimate is that a mini-infuser is the smallest unit for sale and costs $2000 to make so with 70% gross margin each sells for $2857. The 15 units sold in Missouri => $42,857. The 250 potential => $714,250, hardly a "staggering amount of revenue”.
Cost of an ILS......($500,000 / 7 = $71,500)
Cost of a mini.....($71,500 / 36 = $2,000)
The company has seven large CO2 gas infusers in a control unit costing $500,000 and $100,000 of gas-infuser fibre mattes. (Oct 17/17 NR)
The infuser mini (18” by 2”) can maintain 1300 PPM of CO2 gas in water for irrigating up to 10,000 sq ft greenhouses. (Brochure)
The largest units (ILS) have 36 gas infuser minis that are assembled in a radial order for optimal gas-water flow interface. This large CO2 gas infusion unit is available to install at a large commercial greenhouse in the 1,000,000 sq ft to 2,000,000 sq ft range. (Brochure)
SpenceW15 wrote:
I think the price is and always will be opaque as part of the terms of agreement with the customer. On the sacred seed youtube channel within the comments a hemp farmer was asked for the price to which he replied not being able to share such information. I assume the price was heavily discounted as this perticular individal agreed to proceed with the commercial demonstration and I presume commercial adoption as well.
IMO the price of CO2 Gro Solutions will incerase over time. There will be a number of inflection points where potenital customers have no choice but to pay the premium as compared to the early adopting counterparts (so long as margins still work for the grower). As the price increases we may see more growers consider the multiyear payback period in contrast to buying outright.
Thanks for posting everyone and feel free to correct me where logic is misguided. Very best.