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Microcap & Penny Stocks : PKGP (Packaging Plus) -- Ignore unavailable to you. Want to Upgrade?

To: John S. Baker who wrote (3125)	6/5/1998 6:11:00 PM
From: Cannon	Read Replies (1) \| Respond to of 4783

It depends on volume of each order. Example, if an order is placed for 50 of a particular box the price might be 2.00 each. If the same box was ordered in quantities of 10,000 the price might be .20 each. A major expense is set up time for each run so the price drops dramatically with larger quantities. There are also things like printing requirements that add to the costs, but again depending on the volume. If you've every gone to one of those moving outlets (U-Haul etc.) and seen their moving boxes selling for 3 or 4 dollars, the COST to the company (assuming the company buys in quantity for their various outlets) could be just a few cents per box. There are also other variables (special cutting dies required for special boxes etc.) that can affect the costs, but in general, it's volume that counts. In general, the margins are very good for box manufacturers.