GREY:RPBIF - Post by User
Post by
willpellyon Mar 30, 2011 4:03pm
452 Views
Post# 18362948
Gross Margin
Gross MarginThe number one problem with this company is their gross margin...
Picture this: a company makes 2% margin on their product... BEFORE even factoring in actual company expenses like R&D and admin etc. It's ridiculously dumb! Why are they even selling product? What's the point of going around and trying to create partnerships and distribution channels and all, when you're NOT GOING TO MAKE ANY MONEY ON NEW SALES???
Either double the price of your product and actually make a margin, or close up shop. I mean, that's the answer to the problem. I know there might be competitive pressures, but by hoping that "in the longer term" they will "increase the margin as volumes increase" (see MD&A), the company is really really in the can. Seriously, double the price of your product or close the company down.
... any views?