volume, page-79

bd70, I would suspect that lockers produced on that basis would be hand-built and relatively speaking, very expensive - and would not scale to large volumes approaching the floor price one could achieve through production optimization & automation - and certanly coudn't compete with stuff imported from China.

The extent to which this affects profitability of supply of the overall system depends on what's being charged for the locker boxes vs the TZ locks, software, service etc as a proportion of the total package.

As it is early days, MAYBE the locker production cost is a small part of the overall deal so high production cost doesn't impact overall profit toop badly.

Down the track when lean, mean competitors get a sniff of the action, and the offering becomes commoditized, manufacturing cost becomes a much bigger issue - but time is there to ramp prodyction costs down for us as well.

My biggest concern would be the ability of the local fabricator to ramp up production fron ones and twos, to tens and hundreds. Materials availabilty is usually also a constraint.