Does anybody out there here in this forum have some idea as to what a fair and equitable lease rate for a production facility and its equipment would be in terms of percentage of gross sales or gross profit, or some other determinant?
What I am looking at is not a contract situation, but one in which I would be making the product myself in someone else's facility using their equipment, space, utilities, storage, etc.
Sharing overhead costs as a percentage of total production, his and mine, would not be feasible as the overhead for this particular facility is so low that the owner of the facility would not find it worthwhile, even were we to include a significant markup on the overhead...
Any and all ideas would be significantly appreciated as this is a very good opportunity for me and the guy that I am in discussions with...
I am waiting with baited breath as I have confidence in the senior members of this forum and anticipate some great input!
Thanks in advance.
- John
What I am looking at is not a contract situation, but one in which I would be making the product myself in someone else's facility using their equipment, space, utilities, storage, etc.
Sharing overhead costs as a percentage of total production, his and mine, would not be feasible as the overhead for this particular facility is so low that the owner of the facility would not find it worthwhile, even were we to include a significant markup on the overhead...
Any and all ideas would be significantly appreciated as this is a very good opportunity for me and the guy that I am in discussions with...
I am waiting with baited breath as I have confidence in the senior members of this forum and anticipate some great input!
Thanks in advance.
- John
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