M. Scott, it only seems logical that Startronix is selling "the paper", i.e. the leases to financing companies. The financing companies determine the credworthiness of the FP, and if it approves the lease, then normally the financing company would pay Startronix in full, up-front. I have a small financing company that deals with companies selling credit card terminals and printers, and this is the way that industry operates.
It also seems to me that there needs to be a determination of the cost of goods sold, i.e., the unit. That of course is going to give a gross profit figure. In arriving at a guesstimate of net profit, we need to know the cost of internet access, the pay-out to the FPs. This will be the biggest expense. Then of course, we have the general operating overhead. I have not seen the marketing plan. Is it a level binary, or an offset binary, such as 1/3, 2/3? This makes a tremendous difference in the pay-out from the company's standpoint. Also, the pay-out will invaribly be different each time. Thus, any number on net profit at this point in time is truly going to be a guesstimate.
Jim Sanders |
