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Microcap & Penny Stocks : Saflink Corp. (ESAF) Biometric Software Provider -- Ignore unavailable to you. Want to Upgrade?

To: Sheldon C. who wrote (2282)	10/31/1997 12:24:00 AM
From: brad greene	Respond to of 4676

Sheldon, Volume brings lower cost per unit. Lower cost means that the price may come down without lowering margins....So the price comes down, but the margin remains the same.......And you are selling more. Even at 40% margins, Sheldon, why would you not want to sell hundreds of machines to NEC each year? SG&A as a percentage of sales comes down because of efficiency of scale. What is so hard to understand? Selling large volumes of product to OEMs does not mean that margins will be lower......Sales prices may be lower.....but you will have more sales and volume efficiency. bg