Economics

The batch economics of four staggered 40-gallon fermentation tanks achieving monthly production from month 5 of operation.

Per-Batch Economics (Single 40-gallon tank)

Input Costs

Category	Estimated cost
Vegetable fraction (45kg)	~$180
Botanical pack (15kg)	~$280
Brine additives (glycine, ascorbic, P5P, glucarate, molasses, lecithin, black seed oil, glycerol)	~$95
Culture additions (honey rotation)	~$45
Salt (non-iodized, bulk)	~$12
Energy (temperature management, refrigeration)	~$35
Packaging (200 jars, lids, labels)	~$180
Consumables (mesh bags, strainers, testing supplies)	~$40
Water (filtered/dechlorinated)	~$15
Labor (estimated 20–25 hours per batch cycle)	~370 (at 15–18/hr)
Total batch cost	~$1,250

Output and Revenue

Metric	Value
Approximate jar yield	~200–225 jars per batch
Working yield (accounting for QC failures, sampling, waste)	~200 jars
Retail price target	$32–38 per 6oz jar
Gross revenue per batch	6,400–7,600
Gross margin	~81–83%

Four-Tank Staggered System

Four tanks staggered by 30 days = monthly production of one batch starting from month 5 of operation:

Month	Activity
Month 1	Tank 1 starts
Month 2	Tank 2 starts
Month 3	Tank 3 starts
Month 4	Tank 4 starts
Month 5	Tank 1 harvested → first production batch
Month 6	Tank 2 harvested → second batch
Ongoing	Monthly production cycle

Annual gross revenue at steady state (month 5+):

• 12 batches × ~7,000 average = **~84,000 annual gross**
• Less batch costs: 12 × 1,250 = 15,000
• Annual gross profit: ~$69,000

Scaling Considerations

The batch economics are favorable to scale because:

• Most fixed costs (equipment, setup) are absorbed in first year
• Labor efficiency improves with experience and routine
• Bulk purchasing reduces per-batch ingredient costs
• Customer retention is high (monthly subscription product)

Two operators working part-time (40 hours/month combined) can manage a four-tank operation with good systems.

Pricing Strategy

35/jar (midpoint of 32–38 range):

• Premium fermented food positioning (comparable to high-end kimchi/kombucha at $15–20/16oz)
• The 6oz concentrated format delivers equivalent compound dose to a much larger conventional ferment
• Monthly subscription ($35/month) is psychologically positioned as a food/supplement hybrid, not a pharmaceutical

Price anchoring:

• Quality supplements for the conditions targeted often run $100–300/month
• The product at $35/month is dramatically less expensive than the supplement stack it partially replaces
• At the same time, it's a premium food product with a compelling story

The Seasonal Botanicals Premium

Rotating botanical packs with seasonal and specialty ingredients (hawthorn berries at peak, locally harvested centella, etc.) creates a foundation for limited-release or premium-tier products:

• "Spring harvest batch" with fresh centella, fresh herbs
• "Autumn botanical batch" with hawthorn, elder, rosehip additions
• Premium pricing on these batches: $45–55 per jar

Connections

• [[Product Concept]] — what's being sold
• [[Regulatory Compliance Path]] — the legal framework
• [[System Architecture]] — the production system
• [[Concentration and Harvest]] — yield calculation detail