The reason API can make money while paying AEC $360 is because API plans to sell them for 5% to 10% below Beech List. They can easily do that if they have the market cornered by buying all the AEC stock. So they will pay $360, but sell them for about $610 (Beech List is $675). If they are nearly doubling their money on every sale, they need not be in a huge rush to sell them. That's pretty easy math even for me.


---------- Original Message ----------------------------------
From: "Jerry Kaidor" <jerry@tr2.com>
Date: Fri, 17 Feb 2006 13:49:37 -0800 (PST)

>
> I thought the vendor might be trying to buy the donuts at a discount
> from his price. But they have offered him the price hes selling them
> for on his website.

*** Interesting. Apparently the vendor thinks he can make money even with
a cost to him of $360/set. But Kamran cannot make money with a cost - one
must assume - somewhat lower than that. Why can this other vendor make
money at a higher COGS than Kamran can?

The vendor is putting serious $$ on the line, too. If there are 323
sets left, at $360/set, that's just over $116K. Right now, "hard money"
( money not from a bank, but from private investors ) is running around
10%. So the vendor will be paying $11600/year ( or not making it on a
private money loan of his own to someone else, which is really the same
thing ).
- Jerry "fun with numbers" Kaidor ( jerry@tr2.com )



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