YOW 0.00% 2.5¢ yowie group ltd

You seem to be labouring under the assumption that YOW have a...

  1. 410 Posts.
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    You seem to be labouring under the assumption that YOW have a large degree of control over the price Yowie's can retail at, well they don't. After production costs are recovered the profit margin on each Yowie has been previously reported as being about 30c. So even if YOW decided to trim their profit margin 50%, and assuming this was passed on to end consumers, it would make barely any difference to even Walmart's lower retail sale price of around $2.60. Given the above exactly what "plan" could Yowie implement to bring the retail price down - they certainly aren't blowing money on huge advertising budgets and we can only assume that they are running their production and distribution cost effectively?

    You're right that it's entirely possible that after people buy a few Yowie's for the novelty but then stop buying because the price point is too high. This is a risk in what is still a speculative stock but if you want a proven seller, go invest in Nestle.
 
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