Develop Pricing Strategy and Understand Market Conditions

and how do they calculate that and you you're going to have to figure out if you're in some other part of the country it's up to you to take the math from there we're giving you our price right now so that you can go out and undercut Jordan by 2 cents per whatever so let's let's look at the Baseline here too so we talk about a gallon of brine having 2.28 lb of salt per gallon so the cost to actually make our brine is you take your salt cost and you figure out your cost per pound and you know there's 2.28 lb of salt per gallon you can pretty easily figure out what your material material cost per gallon of salt is or of salt brine is I should say now there's a few other things that go into that there's some labor cuz you got to mix the brine there's possibly a loader like in the case of our Legacy Brian maker you need a loader to load it uh there's probably some electricity to run the pump not a lot but it's there and then if the cost of water if you're on City Water there may be a half cent a gallon cost there all in all what we see on a national aggregate average is that contractors are spending about 15 cents a gallon on finished rind so it's costing them 15 cents for salt water electricity labber overhead capex everything else about 15 cents per gallon now here's where the cool part is the margins in using liquids in Minnesota mhm for a pre-treatment the pricing that we're seeing is between $2 and $6 a gallon applied product cost you 15 cents a g a gallon correct and that's without an additive now if we add an additive to our brine there's additional cost there but even if that additional cost is 20 or 30 cents a gallon there's still a break spread there now let's talk about why this range is so big it's honestly pretty simple if you're doing a 5,000 foot property you're dispatching the same truck the same labor you have the same overhead uh uh the same equipment to do a tiny little lot you're going to get more per gallon for that tiny little lot to recover all those fixed costs right if you're on a giant uh 4 million ft site like a distribution center you're going to get a lower price per gallon because you're only dispatching once and you're doing the whole site while you're there and you probably even have on-site storage to store your BR so that's why the range is so large um it's just important to know what your fix costs are so one way to look at this could be that you have a fixed charge per visit and then your charge in on G per gallon on top of…