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Technology Stocks : CheckFree (CKFR)

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To: jjs_ynot who wrote (7790)10/5/1998 10:16:00 AM
From: BitWizrd   of 8545
 
Actually, CheckFree will continue to lose money at $0.30 per transaction until some real volume starts to build up. Once economies of scale kick in, CheckFree will be able to lower that price to make the product even more attractive and still make a profit off of each transaction.

The $0.30 price tag has more to do with the cost of postage than with CheckFree's actual cost. When they began, they sort of ignored the COGS equivalent of the product. They figured if they priced it below first class postage, no biller of any size could possibly object to the price.

Pretty smart. Especially since many large billers may spend close to $3.00 per customer per month on invoicing.

Bit.
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