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   Countertop product line (Updated: Feb. 18, 2008)

 

 1. Countertops Business Summary

  • Average warehousing time is ca. 10 months (the warehousing overhead is about 12% of gross sales as it takes more space)

  • Operation damage/loss (claims and breakage):  5% of total.

  • Loss in packing expenses:  TBD

  • Gross profit: 8 % annually.

  • Net profit: negative (after Sean and Lynn's labor, and equipment expenses)

 2.  Current issues

  • Long packing time (crate opening, opened crate handling, too many SKUs). Will be improved in new stock with straps.

  • Slow sales (unclear website, poor photos and less marketing $)

  • High damage rate (improved with new packaging).

  • Not so good quality from Chinese manufacturer (poor polishing, nails scratches, thickness variations)

3.   Gratian's To Do List

  • Re-do the pricing (higher margin 35% to Linka for this difficult line).

  • Better quality control in the factory.

  • Corner protection for each slab in the factories.

  • Granite repair kits.

4.  Packing cost calculation :

 

     Part 1. Packing materials cost (Maximum 6 slabs.  Built-in to shipping cost. Show packing cost in POs).

 

                  $25,  strong hardwood pallet

                    $5,  A frame and bracing wood

                    $3, shock watch

                    $2, stretch wrap

                    $2, banding

                    $5, pads (78" x 30")

                    $2. labeling.

                    $2: other supplies (nails, screws, corner protector, etc)

                    $0: Warning signs (to forklift driver and customer).

                  $15 labor to put these together (not including product)

 

           Total: $61.00

 

     Part 2. Slab handling (built-in to product cost):

 

                  $15, Island

                  $12, countertop, bartop, vanity tops.

                    $3, back splashes.

       

 

 

 5. Packing process.