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Message: Re: So Pam...Dischino, mur
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Jul 02, 2010 01:18PM
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Jul 02, 2010 01:21PM
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Jul 02, 2010 01:26PM
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Jul 02, 2010 01:42PM

"One question remains. What is the cost of the eVu to manufacture?"

Again, this is confidential information. Why would EDIG or any competitor, publically state cost is X and we sell it for X + a mark-up of X? The cost and sell can vary with each contract as well. Volume manufacturing reduces cost. Large orders most likely require some negotiating on the sell price.

How much does a BIG Mac cost? LOL....

Seriously Pam, in reviewing the financials margins can be interpreted close enough for an investors purposes. Gross margin is one thing, and net is another. With EDIG lean and mean since Mar-2009, the net margins should have improved with each sale.

I can tell you from my manufacturing/sales experience of 37 years in the electrical equipment field, the plants operated at a fixed over head of 23-25%, with a gross margin of 33-35%, to gross 10% and net 5% after taxes. An electrical wholesaler who stocks and sells the finished product of the manufacturers I worked for, Graybar, CED, Rexel, WESCO etc, averaged 18% fixed over head, sold on average at 25% margin, for a gross of 9% to net 4.5%.

We are talking about little ole EDIGY here, and I'd place the gross margin and 30% for product, and 45% for services IMO, with a fixed over head of 15% or less.

Just my opinion, by comparing known industries from personal experience, as a manager with access to confidential information, which we did not make public, even though we were public companies.

EDIG management, better never make the exact margin information public, or they are fools.

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Jul 02, 2010 02:28PM
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