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Ann: Quarterly Report, page-106

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  1. 300 Posts.
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    I can only speak to the logistics side and say as we lock in our closed loop logistics network our costs will drop significantly.
    Currently we use a third party for a lot of orders. You would pay by size and weight. Cases of wine are medium in size but heavy in weight.
    Eg- If I were to use TNT a case would cost me approx $20 to ship to a local metro area, and that will be per case. If I owned the van I'd pay the driver a salary of $200 a day and have them deliver far more than 10 cases.
    On another scale, I could hire a truck and driver for 4 hours for $400 and deliver 22 pallets on the back of a semi trailer.
    yes there's plenty of other factors, but high level, our costs per case will drop as we grow, and especially as we bring process in house.
    But then again, we are a tech company, so I wouldn't focus on the logistics too much.

 
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