CSHK CASHCO MANAGEMENT Y2K Message Board

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Microcap & Penny Stocks : CSHK CASHCO MANAGEMENT Y2K

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To: JOE TURMAINE who wrote (3183)	5/28/1998 8:00:00 PM
From: jhild	Read Replies (1) of 7491

Well there Joe it's not that simple. First you take the List Price and then you whack off the distribution charges. Let's just call it roughly 50%. Then you subtract the actual product costs. Now maybe you can get a four color package done with a little manual for about a $1.00 another $.50 for CDs. Now add in the overhead $250K divided by the number of units sold, and subtract 10% of your gross revenues for royalties, and factor the additional cost of 1.5M shares of stock and well, it is not possible to sell this package at $9.95 a pop and make a profit. Unless of course your business strategy is to lose a little money on each sale but make it up in volume. Like right. Then there are the marketing expenses that will be required to promote the product and the support people to answer technical questions and the person that will be needed to keep the product up-to-date. Sure there are high gross margins in that business, but expenses mount quickly. Then there's Roni's salary to pay. Will the expenses never end? Will there ever be profit?

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