TSXV:MRS.H - Post by User
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Checkouton Jul 24, 2021 3:17pm
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This is precisely why Costco got so big.
This is precisely why Costco got so big. They will be approached with a product, they test it and if it meets their approval, Costco will put it on their shelves. Costco makes a 15 percent margin on all their inventory.
So Unifire, a small business designigate, will be approached with Gov with contracts for anyting from shoe laces to vehicles, and then accept those contracts they feel they can fill with high quality, and on time.
UNI will manufacture some of the contracts themselves, or get other quality small business manufactures to help them fill the contract. 15 percent may be high for a contract they do not manufacture themselves, but it is still easy money when all your doing is ensuring the product is of good quality and delivering it.