I think the marketplace right now is between the Sales force of the company and the potential clients. After the initial relationships are built and then this platform kicks in their SGNA should go down - only for the B2B trading vertical
for the Services vertical - it will be a customised offering so the platform might not help and sales should come from the B2B sales force stationed at or in-around the service center
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completely agree. the whole game is of Bargaining Power which will come into play once they reach a critical volume. Similar to any SAAS startup, the network effects is the moat.
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Some people are talking about low EBITDA margins, one should take into account that this is a pass through business where the margins are always low (say your petrol pump business is pass through), if someone wants to calculate the EBITDA margins in real terms , he/she can do it on net revenues(gross profits are net revenues) not on gross revenues. Finally when it comes about moat in trading business, the only moat is the volume, the bigger you become the tougher you make it for others to enter…
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In general, i would suggest to our members to read the book " The world for sale", its an engaging read which actually outlines how does trading happens on the metals across economies
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