GREY:SXHHF - Post by User
Comment by
GACABon Nov 01, 2010 12:13am
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Post# 17638043
RE: RE: RE: RE: Sonomax signs big deal!!
RE: RE: RE: RE: Sonomax signs big deal!!The point is if they are consignment stock, NEW LOOK isn't taking any risk with the product and if they don't sell they will all end up back at Sonomax's HQ in Montreal. If NEW LOOK has only accepted the product on a consigment basis then it isn't much validation of the product. Anyway, we don't know the details of the deal (still not announced by SHH) anyway so the consignment argument (which I know I raised) is theoretical anyway.
With regards to your assumptions:
- the $6.4M you quote would be revenue to New Look NOT Sonomax, presumably if New Look is selling them at $1000 (based on your assumption), then Sonomax would have to sell them at a lower price to New Look.
- What is the basis of your 100 sales per store per year? I know the population is large in Ontario and Quebec but it doesn't matter, the whole population doesn't have hearing problems and if they do are they all going into New Look to get hearing aids? I think your 100 units is a pure guess. It could be lower it could be higher.
- You haven't included any profit margin assumptions for us so we can see how much Sonomax is actually going to make PROFIT.
Think you should go back to the drawing board, your assumptions are all pure guess work.