Bill, it is certainly a valid point that larger production runs are more profitable (assuming no inventory build-up). However, the importance of this factor depends strongly on the margins involved. With high margins, small runs can still be profitable.
VLNC's customers may well be in the small margin category; but my understanding is that VLNC will, initially at least, have hefty margins. Even so, VLNC's customers would, IMO, be interested in relatively small quantities at first - to be cautious about the dependability, volume availability, and market acceptance of a new battery type. This is practical, I think, as electronics items apparently can be engineered to take various battery packs interchangebly. |
