ISFCA clarity- economics paint clear pathISFCA
Lets make assumptions on economics (WAG), which dictate what they should do, using the dry contrast in a bottle:
Assume making the product and bottling it costs $1.70/bottle
Third party barite = $1.95/bottle
Third party manufacturing costs = $3.40/bottle
Total cost = $7.05/ bottle selling for $8/bottle, 0.95/bottle profit = 12% gross profit
If they start with a warehouse and a bottle mixing line importing Chinese ba,
Bottling costs = $1.70, Ba cost $1.95, total cost = 3.65 profit=4.35 = 54% gross margin
FC in production = bottling cost $1.70, Ba cost $0.28, Total cost = $1.98 total profit = $6.02 = 75%
When you look at it this way, they need to Get FC going asap, but if capital is limited, they should start by buying the equipment to make this stuff using Chinese. Surely the capX will be smaller by starting this way, lower dilution to get high margin cash flow, then get FC going. That’s how I would do it. Go rent a warehouse, buy the bottle filling equipment and start making money. No idea on the gmp hurdels doing this, but, Giddy Up Voy, lets go!!