Vinn, spot on. Couldn't agree more. I think I have talked about this in previous posts too.
In the business this is called 'churn'. New products in, old ones out. The cost of clean up through the supply chain is rarely calculated.
The manufacturer pays to put products in and pays to flush them out.
The cost of this is absorbed by the manufacturer, rarely by the retailer.
The only point I don't concur with, as stated in an earlier post, is the Capex (capital expenditure) of the plant set up and building which should not be included with 'Cost of Sales'.
The China business potential does excite me though..
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Vinn, spot on. Couldn't agree more. I think I have talked about...
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