Doogs, definately difficult to calculate the number of tubes...

Doogs, definately difficult to calculate the number of tubes required. You'd have a fair idea of wholesale cost and YOUR margin.

Looking at the half yearly 20,344 tubes sold for a return of $284,100. Which equates to about $13.96 per tube. Ofcourse different buying groups would pay different amounts according to the deal and volumes. But easy to see why our product is in the expensive bracket.

Our "typical" loss is around $500k per quarter. Some quarters less with a tax offset but others are more. But average out to $500k.

That $500k is predominantly corporate overheads, ie rent (PAJ/JP own the building!) and salaries. But also include amounts directly assosciated with producing and marketing Thermalife.

So absolute minimum breakeven is $500k revenue, but probably $600k to cover increased production costs. So at $14/tube, we would need to sell between 36k-43k tubes per quarter to break even.

Spead over 2000stores that's 20tubes per store. 90days per quarter, so only a few tubes a week per store. Seems achievable LT.

The issue is many of our stores are consignment. ie they dont pay for stock. So have nothing to lose by stocking it. I suspect these are the underperforming stores. How many of the "extra" 1000 stores fall into this category?

But importantly the $500k is corporate loss, so multiple products would certainly reduce pressure on Thermalife and make the numbers stack up even better.

Their are also manufacturing limits and active ingredient supply issues to consider. The 200k tubes for a year would be stretching our limits, especially with another product using the same ingredient and plant.