Hottuna- Glaucus uses $500/kg as an example (which is not *Indian* Sandalwood, hardstop). What this would imply is that
brokers/retailers (not producers) are making at
minimum $3,500/kg on the sale of oil, a 87.5% gross margin on a raw product. If this were true we should all stop trading stocks. Go buy USD $1M worth of oil and sell it for USD $8M.
To the example you gave, is it logical that producers would allow a 87.5% gross margin on milk? At least in the US, gross margin on milk was 1.9% in 2014.
"Pennsylvania Milk Marketing Board's January 2014 figures, wholesale whole milk went for $4.04 per gallon and the retail price was $4.12."
Why would a 87.5% gross margin make any *reasonable* business sense in the case of Sandalwood? This is essential oil we are talking about, not SaaS software sales.
