Post 589 describes Billserves' plans to open a service, through Checkfree, at which customers would have the right to have a certain number of bills paid each month, from their bank account, for a small fee. In discussion with investor relations, I gathered that the sum of $6 per month sort of runs through their minds. Well, other facilities which offer that service want $10. They suggest that would commence a cost reduction trend which ultimately bring the price to zero.
I am simply an investor and am certainly not the person to say where the money is buried. But I did my utmost to make the point that the thing which would make this company take off like a Yahoo or Amazon would be an offer of FREE bill payment service. I realize that my check activity is less than typical, but after authorizing direct debit of my account for water, electric and phone charges, I don't write over 2-3 checks monthly that I might e-pay. I am not about to pay for that service, and I feel that a large segment of the e-population feels the same. But everyone with a pc is a customer for free service, and that would give legs to corporate decisions to use billserve to collect their bills - and cover a lot more of their bills. And it would give legs to others who would pay for advertising on that service. And therein would lie payment for the service. It would avoid the division of the business between the Checkfrees, Quickens, MS Money, et al., because Billserve would soak it all in. And the stock would go wild. Beyond question, that would delay profitability while the cost of providing that service is absorbed until the building cost and advertising monies kicked in. When the service becomes ubiquitious, and the stock jumps, there would be ample sources for funds to allow such costs to be endured. And that would be fast in coming, so what they really would need would be some contingent advertising commitments from some of their present customers.
Such are my thoughts. Any comments? |
