Methods of Industrial Production

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Drinkarette will be released inside packets of 20 or 30 cartridges. Even big cigarette companies could release their own Drinkarettes. For example, "Marlboro Drinkarettes" can contain a taste Philip Morris will choose (something which will be proved rather convenient to the cigarette companies). The production line, therefore, will have to:

1. Produce the cartridges open from the one side.

2. Produce the appropriate filters (filters for honey may have a slightly wider hole than the ones for whisky).

3. Fill the cartridges and close them.

4. Make the packets.

5. Put the full cartridges and filters into their packets.

It is highly recommended that cartridges and filters will be released in different packets. First putting them together is more expensive, second a Drinkarette cartridge inside a 120 's packet contains more liquid being packed alone (that cartridge takes 4-5 minutes to consume) than being packed together with the filter, something which would result to a time of 2-3 minutes for that shorter Drinkarettes. People also wouldn't like to pay for 20 filters with 20 Drinkarettes, when actually they only need one filter which they can apply it to multiple cartridges.

For producing cartridges and filters in a rate of 10,000 packets per day, one may need two separate machines which cost approximately 0,4 million $US.

Total investment for 10,000 packets per day, including packaging and filling machines, gets up to 0,7 million $US.

1. Honey and alcohol are rather expensive liquids. Normal liquids will give a much lower cost for liquids+packing.

2. The calculation of the liquid cost has been done as following. 20 Drinkarettes contain approx. only 50ml of liquid. The price of Ballantine's in Greece is 2800drs/1000ml (consumer price including glass). Net cost, only for the liquid, it is at least 50% of that number. So 50ml=70 drs, or 0.28 $US containing Ballantines, for example. With the same philosophy "Drinkarette Clear" containing water, may cost less than 10 drs or 0.04$ , "Multivitamins and Minerals" less than 40 drs or 0.15$ US, etc!

3. Retailers-chain profit may fall down to 30%, same as with cigarettes, when Drinkarette will be a widely consumed product and people will ask for it. That will increase the net profit of the producer to 200% (up to 1.5 $Us, depending on the liquid) when the market price will still remain close to 2.3 $US.

4. Cost of 1.5 drs/Drinkarette cartridge + filter is the highest cost possible. That cost represents production of 10,000 packets per day. Only in Greece, we have at least 10,000 sales points for cigarettes only in the Athens area. In a normal production circle, Drinkarette will be selling at least 2 packets at each selling point all over the country per day. That gives, for example in Greece, a production of approx. 50-70.000 packets per day. At these numbers or more, the cost of the materials for each cartridge+filter+machine work drops down to 50% or more. Therefore in big markets, (such as the USA market for example or countries much more populated than Greece), the starting cost may be normally around 0,004 $US with tendency to fall even more while production will be increasing.

For Drinkarettes full with (for example) Jack Daniels or honey, and other liquids that are expensive, the total cost of materials is as following:

1. 20xDrinkarettes cartridges + filters(plastics)= 20x1.5 drs= 30drs/pack=0.15 US$ liquid + packing 60-80drs/pack=0.3US$

2. Total cost/pack 120-140drs/pack=0.45 US$

3. Sold at 100% to retailers, gives 240drs/pack=1 US$

4. Sold from retailers-chain to the final consumer at a total of 100% higher price, still gives a market price lower than cigarettes packets.

Under these conditions the net profit for the producer out of each packet of Drinkarettes sold in the market for 2 $US is about = 0.65 $US

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