Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Pronichev who wrote (4938)	11/13/1998 8:17:00 AM
From: mooter775	Respond to of 27311

Assuming the retailer gets a 50% margin on his selling price, and a distributor 20% on his selling price, then a $ 300 battery at retail would cost the retailer $ 150 from the distributor, and the distributor would pay the manufacturer $ 120. So if a manufacturer produced a finished end product to the distributor he should get $ 120. This would include final assembly and packaging, which Valence or other manufacturers could presumably have an intermediary do, and there seems to be ample margin ($ 45 in this example) to do so. Valence may well deal direct with the OEM and not use a distributor and either reduce the selling price along the line or provide more margin to the repackager.