Thread: New jsb pellets
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Old 29th January 2015, 12:25 PM
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rich rich is offline
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Join Date: Nov 2008
Location: Shebbear, N Devon
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I would be quite interested to see the business model for pellet manufacture. Clearly there is a large investment in relation to the product material cost, for tooling, development and so on. Volume sales will be a key factor in determining sales price, with such high front end costs.

But there is already a lot of added-value built into the price we pay for pellets today. It would be good to find out how any more can be justified.

The material cost is interesting. If you take BAR's sale prices as a starting point, and I know we can get discounts for quantity, the 177 pellets that we typically use today retail at something like 25 to 35 a kilo. On the other hand, lead shot for shotgunners is about 4 a kilo, and sheet lead for roofers is about 2 a kilo. Those products also have to be manufactured, promoted, distributed and retailed.

And I'm not suggesting we go out and buy lead shot and then hammer it into shape..........
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