SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Outerwall (OUTR), formerly Coinstar (CSTR) -- Ignore unavailable to you. Want to Upgrade?


To: Dave Jones who wrote (62)12/13/1997 1:36:00 AM
From: Gerald Thomas  Respond to of 351
 
Dave...
I have seen both explanations...

first that the stores get a percentage and then that they are just
asking them to come into stores to bring in new business,add customer service and tap into a cash flow that wouldn't have been spent...

Even if they get 2% or so...

keep in mind that margins will soon be going from 26% this year to
40% next year 1998 and that 150 new machines are installed each
month...

revenues are expected to more than double this year 1998 ...

and the quarterly revenue projections for this year increase
about 2 million per quarter...

so it really doesn't matter (although interesting)



To: Dave Jones who wrote (62)12/13/1997 1:42:00 AM
From: Gerald Thomas  Read Replies (1) | Respond to of 351
 
If you need to calculate it...
they took in 103 million in coin flow last quarter and reported revenues of 7.8 million...

That is exactly 7.5% of 103 million...

now whether they then are calling a "fee or percentage" of the 7.5%
as a "cost"...if so the total costs are currently yielding a 26% margin and this year total costs are expected to yield a 40% margin...

and if they are not including a "fee" as a cost then there is no fee...

so to me it really doesn't matter.