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Technology Stocks : Avalon Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: OFW who wrote (175)	1/29/1998 1:46:00 AM
From: Madeleine Harrison	Respond to of 1530

Will the key revenues from such a service will come from advertising on the kiosks? With placements in major retail chains throughout the company (Walmart, etc) I can understand why there should be a real attraction to this type of information provider. Offie, from what I learned speaking to the VP of Marketing and Sales, there are a number of ways the kiosks can generate income, but the primary are these: payments from the retail chain to have the kiosks placed throughout it's stores, revenues from the companies that place ads on the kiosks, and in some cases, revenue from the user of the kiosks. In theory, I can think of other ways to generate income from them, but it's dependent on the complexity of the computer system within the kiosk, the programming of it and it's connection to other systems. Most of the modern kiosks have a flat screen which the user simply touchs with a fingertip to enter info. A typical transaction might go this way on your second use of the device. You step on to a platform, insert your arm in a cuff, enter your name on the touch pad and the kiosk screen reads back at you, "Hello, Offie! Holidays are rough on the waistline, aren't they? Since your last visit on Dec 18th, your weight has increased 12lbs to 210 lbs. this is 40 lbs more than a man 5'10" normally weighs. Rexall Drugs has NutraSweet on sale this week. Push here for a rebate coupon. Bing! Your blood pressure is 160/110. This info is being sent to your electronic file at the Podunk HMO. The Desk Nurse will contact you for an appointment to see Dr Fisheye, your physician of record.Is your phone number still 555-1234. If "no," enter your number now...Bing! Visit the small appliance section of Rexall and take home Deepak's Deep Meditation Feed-back Machine for deeper sleep and lower blood pressure! Thank you for visiting your local Rexall kiosk today, Offie. Rexall..where you stay healthier through modern science." Well, ok ok , maybe the dialogue isn't quite like that, but you get the idea of the data stored, links to product sales, and data links to HMO's.. The possibilties are endless and the revenues streams are multiple. (1)Rexall happily pays Avalon let's say $7500 per kiosk each year for 200 stores. Why? Because people go out of their way in malls to use them.(esp. the elderly and those without health coverage) It increases traffic in the Rexall store. "Oh Harry, by the way, as long as we're here, we need some more calcium tablets and I saw on the blood pressure machine they were on sale this week." (2) Other advertisers such as NutraSweet pay directly to Avalon for the space and targeted audience (3) Podunk HMO pays Avalon for the service because it reduces inconsequential, unprofitable visits to their facilties, and increases the potential of uncovering health- threatening conditions which could be extremely expensive to the HMO. (Meantime the HMO also has an permanent ad on the side of the kiosk) This, incidently, is one reason I am betting that AVAL was addressing several hundred physicians from a well-known HMO in the mid-west a few weeks ago.. because the tie-ins with HMO's are stupendous and mutually advantageous. Some clinics are even interested in having the kiosks IN their premises. Anyway, to end this ramble, I like the way AVAL's management is looking at all the possiblities for the kiosks, and hope they get the financing approved soon so revenues can flow from the acquired kiosk company. Another 5000 kiosks couldn't hurt!;-)