Operator
Our next question comes from Rosemary Morebelly for Gabalian Company. Please go ahead.
Rosemarie Morbelli – Gabelli & Company
Thank you. Good morning and happy new year.
John K. Morgan
Good morning Rosemary. Thank you!
Rosemarie Morbelli – Gabelli & Company
I was going back to yourself growth of 2% John and the following comments regarding the investments. Am I correct in translating this that in the benefit from the highest stuff grows in the where you were previously anticipated will all go into the investments needed for growth in the future and therefore the EPS while you don’t give any guidance may just be flourished the last year or am I misreading that?
John K. Morgan
Mark, do you have a map on that?
Mark R. Bachman
Yeah. So Rosemary, we are making investments that are will in fact cause earnings to be relatively consistently with the prior year on an adjusted basis. As we said we are spending our last conference call in the range of $5 million to $6 million both to accelerate our organic growth as well as some of the consultant products we articulated in the last year as well some of the regulatory investments that we need to make to be compliant with the global harmonization standards. And so the growth that we are seeing in the top line is being reinvested and that’s when it will have a muted impact with respect to bottom lines earnings through the year.
Rosemarie Morbelli – Gabelli & Company
Okay. Thanks. That is helpful and looking at the raw material cost, Mark, you said that petroleum based was about 45% of your raw materials. What is the overall raw material cost of the percentage of your cogs?
Mark R. Bachman
So raw materials, between the chemicals we buy and the package materials are between 70% and 80% are cost of goods sold and two third of which are traditionally been chemical and one third has been packaging.
Rosemarie Morbelli – Gabelli & Company
Okay. Now the lower oil price is really going to help both categories. Isn’t it? I mean the packaging I am sure it has a lot of plastic in it and that should come down with the lower price of oil.
Mark R. Bachman
Yeah, so the high density polyethylene has been increasing for months and only in last couple of weeks that we see any break in that but it has gone against the trend in oil because of different demand and supply characteristics for that particular product. Other things like acetone have been increasing until very recently.
So it’s hard to use what’s happening with crude oil when we are saying it all covering around $50 and making that translation into our raw materials then. So we do expect to see some benefit but there is clearly anomaly out there as I mentioned. Things like acetone and the HDPE, then we have other things while you say packaging, plastic, yeah we do use some but we also a lot of product in steel and in both for aerosol cans as well as the drums. Those are increasing, core has been increasing. So there are some offsets to that.
Rosemary Morebelly – Gabalian Company
And then looking at the other side, are your customers already asking for price break because they believe that you are getting a break on under the raw material side and how much do you think you can keep actually in that net?
Mark R. Bachman
Rosemary, that has and always does occur. The thing we have been mindful is that over the last couple of years is input costs had come up, we had not been able to obtain the necessary price increase to degree appropriate and so the conversations we are having with those larger customers are about that longer term trend and that’s why I really think it’s wise to think about the gross margin range that we continue to talk about because over time there is this dynamic that you describe where it takes a little time to get increases in the market and there does comes periods of time where we are asked to respond to the lower input costs and so that’s why we think that over time it’s wise to think about a gross market range for this business model more likely we’ve guided towards.
