Q. How do you get in a situation where it costs you more to produce than you get paid ?
A. You have a Bottling Partner for Wellness Shots who gets paid a fixed clip per volume bottled, because you outsourced this rather than do it in house and retain both the IP and the opportunity to pickup packaging efficiencies.
So at the end of the day, the bottling partner doesn't really care if you make small losses as long as that can be sustained for a period of time where they derive the profit they wish to for the planned volume, almost a pseudo dividend if you like by gouging the profit away via inflating COGS.
By the way from the videos of the Wellness Shots being bottled over on Insta it's a pretty ordinary set up to be paying for an outsourced service, single Nitrogen head and single filler head - amateur hour by my experiences and expectations.
FOD Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
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