Originally posted by ChippyDude
A boutique Brand like KTD dosnt need the same sales Volume of A2M.
eg) Lets say based on new Cars for sale that a Toyota Hilux was the best value deal and was getting most of the sales. But there was another brand of Ute, that was about as good but was more expensive.
The bigger Company Totota still makes more sales on lower margin, but the other Brand is a smaller company and sells their Utes for a higher price, higher margin but lower Volume of sales.
Its the same as say commodore, if they put them for sale at 50k they wont sell as many as they would at 30k, but they have volume production and can equate they are better to sell more at 30k than having low sales at 50k per each.
So based on the size of KTD vs A2M, its common sense to set a higher price because they arnt trying to match the sales volume of A2M. Because KTD dosnt yet need that sales volume . All KTD needs is to sell its production volume. So it can set a boutique price because A2M is the cheap Mullet in the Fish Shop and KTD is the Smoked Salmon. So regardless of what is better, the volume of supply and sales volume required dictates the price.
Lobster used to be a low class food, but because of supply vs demand that has flipped it to an expensive dish.
I agree and this is why I bought into KTD. I love their diversification of supplying anhydrous milk fat, various powders, animal nutrition (calf replacer) and their Face treatments for acne. Personally I think it's a very unique company and with their current expansion of their manufacturing facilities can only mean better things to come.
