Urbanimmersive Inc V.UI

Photography margins will drop to 20% to 40% in accounting

[kaykay22222]

I noticed one thing. The photography service was specified with an average gross margin of 40%-60%. This is probably because the freelance photographers are paid directly. By using standard 3D tours, this amount will drop significantly. The following example makes this clear: <br><br>

 

Assume a photography service costs $200 CAD. Let's say the gross margin is 50%. I.e. to Ui flows $100 gross profit. Of that, $40 is for the 3D tour. $60 is for the service. Because SaaS and service are separated in accounting, only $60 gross profit is booked for the service. SaaS has a gross margin of 85%. <br><br>

 

Service has only a gross margin of $60/$200 = 30%. (20% at 40% margin and 40% At 60% margin - we do have a range).

Overall, the Ui gross margin is 47%. 

[kaykay22222]

The positive side of this is that we have the "most-compelling" product in the market at the best price and can therefore build up a massive market share. But in the long run, Ui should increase its prices to increase margins.