The extruder takes plastic flakes of any combination of colors through the hopper and spits out a stream of plastic, like a big Play-Doh extruder. This allows me to produce consistently colored plastic for more professional-looking products. I will still be able to get the cool confetti look (below) but now can make solid colors as well, without worrying about collecting recycling material of the exact same color.
Some people have been experimenting with the extruder as a way to create filament for 3D printers as well. I am not planning to do this, as I would prefer to work on production-oriented solutions made from molds. I believe 3D printers are best suited to complex prototyping work which does not fit my project well.