[meteorite-list] Membrane Boxes

From: MexicoDoug_at_aol.com <MexicoDoug_at_meteoritecentral.com>
Date: Sat Feb 11 18:39:48 2006
Message-ID: <190.51081af9.311fcfb3_at_aol.com>

Darren G. writes:

<< I'm judging the price the manufacturer
 charges. With gem jars, you have something that costs a few cents to make
 sells for around 20 cents. With membrane boxes, you have something that
costs a
 few cents to make and sells for over a dollar. That's my point-- price
 by a monopoly single source. >>

Hola Darren,

Of course I agree with your logic, but come to a different conclusion.

Let's say a manufacturer makes 100,000 gem jars at direct material and energy
costs of $0.03 each, has factory overhead of $3,000 and uses no QC as a 15%
off spec product is acceptable at that price. Plus shipping is $400 to get to
points of sale.
That's a cost of $0.064 each (46% gross margin), and it is sold to the
distributor at $0.12, who in turn deals with folks like us at only $0.20 each
(getting a 60% gross margin).

Now Eurobrane enterprises says, what crap. It works, but there must be a
premiummarketout there we will give them antigravity, nearly sealed protection
from the atmosphere. But make only 10,000 'brane jars at a direct material and
energy cost of $0.05 each plus a factory overhead of $3,000 and a QC and
higher off spec scrap rate of 50% to reflect the laminating difficulties and
avoidance of bubbles, and better packing protection requirements, together being at
least $2,000. Plus $400 in shipping to points of sale (smaller quantity
offset by better packaging and care and lower volume). That's $0.49 each. A gross
margin of 46% gives $0.90 wholesale price and a 60% retail gross margin gives
$2.25 a piece.

Either we're getting a good deal or Henry Ford and Joseph Wharton need to put
a 'brane jar in everyone's pot of chicken.

Saludos, Doug

We could, of corse, drop the QC requirements to lower cost. But then, gem
jars really would be a comparable competitor. So brane sales would drop even
further and the fixed costs would jump up even more...

So why don't you go to China and convince them to make this volume since
every mineral dealer selling fragments for $1.00 a piece now can pay $0.37 a piece
and have brane jars, even though it will now cost them as much as the "gem"
in it now. Maybe they will all agree and say, yes, we'll all switch and not
use the cheap gem jars any more for the public good. Now brane jars and gem
jars will cost the same and we will love you but the mineral contingent will set
your feet in cement boots and give you a free dip in the watering hole...:) :)

Saludos, Doug

except $3000 for QC and off spec materials, for the run and employees no one
to do quality control as $
Received on Sat 11 Feb 2006 06:39:31 PM PST

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