CNN 6.25% 15.0¢ cardia bioplastics limited

ann out : leading us maufacturer doubles order, page-13

  1. 31,884 Posts.
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    Not necessarily the data I was expecting and quite surprising for a specialist manufacturer and reseller to be netting just 10-20%. Are we talking Biodegradables or Plastics/Packaging in general?

    10 to 20% is a reasonable return. We're talking about high volumes on everyday use items. Prices are already higher than non-eco friendly equivalents, if you price yourself too high you're out of the market. If you look at the Brazilian Drogaria Araujo announcement recently where annual orders are expected to reach $400,000 you could reasonably expect to profit $40K-$80K. That's why it's important to impress them to give yourself an opportunity to grow your supply across their whole organisation. 38million customers a year means potentially 38mill Biohybrid bags and a potantial million dollar plus profit deal.

    So each deal they've announced is not much on their own but add in the potential to infiltrate the whole organisation and multiply this out by many organisations, the dollars quickly grow.
 
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