Thanks Jerry - glad you stopped by. That's an interesting release for a couple of reasons. First, the $350,000 figure mentioned exactly matches the initial piece of financing provided to Avalon by Appropriate Health Services.com, Inc. (I didn't say it meant anything, just that it was interesting [g].) More importantly, though, it looks to me like Objectsoft is racing AVAL to get kiosks into the hands of the public. Note that OSFT is going to spend more money manufacturing the kiosks ("plus related infrastructure"), at least initially, than they'll be able to sell them for. So the problem is, how to keep this from turning into a money-losing commodity business? CONTENT, CONTENT, CONTENT.
Please note, BTW, that this is all my opinion and speculation, since the company has not exactly been forthcoming with press releases lately. I believe that Avalon's kiosks, if manufactured and purchased on a standalone basis, would cost about the same as OSFT's. However, AND THIS IS IMPORTANT, my understanding is that Avalon and AHS.com have determined that the Avalon terminals would be best used as "loss leaders" for the company's health and wellness services and other Internet services. You know, sell the razor cheap and profit on the blades. Or sell the Nintendo system cheap and sell each game for $60. ***RECURRING REVENUE*** should be the goal, not cranking out zillions of kiosks and selling them at razor-thin margins in competition with "Joe's Kiosks & Pit BBQ of Panama City Beach" (i.e., nobodies).
There are already several companies selling or leasing kiosks for tourist information booths and the like. BUT when it comes to real two-way interactivity, the Internet, valuable services that people will seek out (or that will be available in convenient locations that they do NOT have to "seek out"), and REAL PROFITABILITY, I believe that AVAL and AHS.com have the "killer app." In a very short time, in my own little biased opinion, anyone who doesn't recognize the difference is going to be smacking himself or herself in the forehead and saying "Wow, I could've had AVAL." --Eric |
