RE:RE:Recurring Verde QuestionHello Celt,
You hit the nail on the head - all the price metrics are in the public domain. I shared in my prior posting that while the Q3 reported average price per tonne was $69, the lowest retail price per tonne (ignoring any sale of a premium priced product) based on the Verde website was. $126 per tonne.
My numeric predisposition want to reconcile (explain) the inherent $57 difference between those two publicly available numbers.
The Company has shared that not all sales are made at full retail prices - some products leaves the Company at wholesale prices where the distributor makes their return by seeling to the end customer at full retail. Lacking the exact details (competitive information that should not be shared publicly) you must resort to estimates, which I provided in my posts.
If you applied the 30% anticipated wholesale discount to ALL sales (which we know is not the case) this would give you an expected Q3 average selling price of $88, which is still $19 per tonne more than was duly reported in the quarterly financial statements.
My conclusion, previously shared, is that retail customers were being offered significant discounts beyond the retail prices posted on Verde's website. I expected the Company to comment on this strategy at the presentation which, as you pointed out in your post, would be a marketing approach to secure more first time customers. As is offering a $42 per tonne discount for free shipping.
Cheers,
S.