Rollfast Mark II      
Toilet Tissue Dispenser 
for
 public washrooms/restrooms

                          

 Rf

 

      Projected Gross Profit

 

 

Most manufacturers would probably want to double the ($40) cost of production to sell at $80, so the margin will be $40.  

 

If distributors buy for $80 each, they will probably use a 50% mark up to sell to the end user for around $120. This sits very nicely within the costs of other brands and types of dispensers.

 

Please see "The Competition" on another page of this website. 

 

In reality the sales and gross profit may look like this:
 

 Year

 Sales Volume

 Gross profit

 1st

 25,000

 $1,000,000

 2nd

 50,000

 $2,000,000

 3rd

100,000

 $4,000,000

 Thereafter

500,000

 $20,000,000

  

Thus, once the market is mature in year four, we believe the annual gross profit could be $20,000,000 and more could be achieved, even way more.

But realistically, if you only achieved half that prediction, would you be desperately upset? Let's face it, $10,000,000 a year would be a pretty good outcome, wouldn't it? Compared to the modest investment?

Most accountants today would regard a 33% return on invested money as good business. But if you invest around $1,400,000 (maybe less) in this product, how excited would your accountant be if you showed how you could probably gross that invested sum in the first year building to gross $10,000,000 to $20,000,000 and maybe way more by year four?

 

 

Next page: Tooling