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Non-Tech : Outerwall (OUTR), formerly Coinstar (CSTR) -- Ignore unavailable to you. Want to Upgrade?

To: Mongo2116 who wrote (56)	12/9/1997 11:00:00 PM
From: Gerald Thomas	Respond to of 351

A couple of things... The cost of the machine was approx. 23,000 in 1993 and is now currently approx. 12,000. As to the 3% I don't know if that is the same agreement all stores sign... interesting. I was under the impression that coinstar paid a small fee for the space that the machine took up...That they were bringing in new business and cash flow to the business .. will have to do the math ... They have amored services picking up coins when their wide area network that all machines are hooked up to say the machine is full... also the deals they sign are area by area so they fill a market and as it fills their costs come down because they use the same service more efficiently when concentrations of machines are next to each other... The thing that I like about this company is that revenues are almost pyramid like with 150 new machines each month and as machines age their weekly volumes increase. Also they estimate that including costs of servicing,collecting coins and everything to do with machines they pay for themselves in approx.3 years... Lastly about the profit... I have seen projections from 2 companies... revenues are 25 million 1997 and between 57 and 64 million in 1998... and every quarter in 1998 and 1999 (all 8) are sequencially better than the prior quarter ... Not a bad business huh?

To: Mongo2116 who wrote (56)	12/10/1997 9:42:00 AM
From: Gerald Thomas	Read Replies (2) \| Respond to of 351

I didn't see this posted anywhere... getting some bank exposure... Machines Available to Financial Institutions Commercial banks, credit unions, savings and loans and check cashing centers in regions all over the country are beginning to see the value of offering a uniquely convenient service to their customers, the Coinstar machine. The Coinstar machine accepts a customer's accumulation of unsorted coins, quickly counting and sorting them at a rate of up to 600 coins a minute. The customer is then issued a voucher which is good for cash or deposit at the teller window. Currently, the Coinstar network consists of more than 3,000 machines located primarily at supermarkets throughout the country. "With growing demand from the financial services industry, we felt it was time to develop a division of the company that will focus on addressing the desire of bank management to find a better way to deal with their customers' coins," said Jens Molbak, president and CEO of Coinstar Inc. "The Coinstar machine turns an operating hassle into a customer service opportunity." The Coinstar service can now be found at commercial banks in New Orleans, Louisville and Cincinnati; credit unions in Tampa and Dayton; savings and loan branches in Los Angeles and check cashing centers in San Diego and Seattle. "One of the advantages of our system revolves around its network capabilities." said Rod Brooks, vice president of sales and marketing for Coinstar. "The network keeps track of machine capacity, operating efficiency, promotional messages and numerous operating statistics. On a continual basis, information from every machine across the country is sent to headquarters - we have total knowledge about the status of each individual machine in our network." The Coinstar machine will be on display at the BAI Retail Delivery Conference in New Orleans, December 1-5, 1997. The Coinstar coin counting service requires little support or maintenance from branch personnel. Coinstar employs a nationwide team of field service engineers to regularly maintain the network and respond to any problems. "Coinstar provides a valuable service to banks while at the same time reducing operating costs." said Marlane Wolf, national director of financial services for Coinstar. "Americans are tired of the hassle involved in converting loose coins into spendable cash and financial institutions are tired of the hassle associated with counting and handling them. With the Coinstar service, the hassle is eliminated for everyone." The Coinstar machine can also be utilized as a marketing vehicle for other bank services. Its on-screen display is capable of delivering messages and graphics specific to the banking partner. The cash voucher may also contain customized text and graphics. The self-service machine is highly reliable as well. It has been designed to withstand some of the "non-coin" items that exist in people's jars. Paper clips, thumb tacks, slugs, teeth, golf tees and lint are but a few items commonly trapped by the Coinstar machine. Coinstar Inc. was founded in 1991 and is headquartered in Bellevue, Wash. For more information call 800-928-CASH.