A Question for Beaner Hey Beaner, I'm not trying to put you on the spot but simply want your opinion about something. Perhaps your opinion might benefit everyone and that's why I didn't send my question via PM.
I think normally when companies produce a product they look at the aggregate of their input costs and then apply a reasonable margin. Afterall we are using their supply chain. In this case of Re:Build producing the finished ESS units they have an Exro input cost, they have a battery supplier input cost and they have metal input cost and other various costs for the bells and whistle etc. I expect under normal circumstances they would then provide a wholesale price (wholesale price meaning they don't sell the product to the end user) to the retailer and then the retailer (sales/installer channel companies) applies a margin after installation to the end user. I think this would be the normal practice.
Perhaps the arrangement with Re:Build is different. Do you think RemBuild will use the conventional model or whether they have done something different with EXRO giving them a percentage of the wholesale price for their input? Exro does hold the key via their technology. The reason this came to mind is that, as per the announcement, EXRO will financially benefit in the cost reductions along the way thereby indicating they are doing something differently here, perhaps based on a percentage of the wholesale price being their piece of pie rather than just paying EXRO for their component inputs.
Perhaps we are in for 50% of the profits? Doesn't that essentially wash out and become the same thing if they pass along 50% of the cost savings?
What do you think?
Thanks in advance for your opinion!
best regards
thefourth