GREY:AXBSF - Post by User
Comment by
VPofFNEon Dec 08, 2015 1:37pm
39 Views
Post# 24365698
RE:RE:RE:RE:RE:RE:Interest..?
RE:RE:RE:RE:RE:RE:Interest..?Yup, they ALL - every single one of the alternative material pallet producers - have a closed loop target model. This is only a very very very small part of the pallet market, and everyone wants it. $6.00 per pallet trip is not reasonable nor is it sustainable. Try $4.25 - $4.50. After freight, handling, cleaning, storing and losses, this will provide a Gross Margin of ~50%. Then you have significant SG&A to cover off before you calculate ROI. $18 million is a drop in the bucket, you'll need $250 million to be relevant.