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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Jay who wrote (50963)	3/22/1998 11:38:00 PM
From: Richard Ruscio	Read Replies (1) \| Respond to of 186894

Jay, I'm doing this from memory here, so if I screw up the numbers, well, it's late. I'm assuming a lot here - Intel knows how to hire cheap, buy low cost computer systems, buy databases full of answers to most questions, get phone lines in place ... you know, all the stuff you'd outsource if you didn't want to invest / buy outright if you were in a hurry. Each support call will last 5, 10, or 30 minutes, net, and break out about 65%, 30%, 5%. You do get a lot of "plug it in, please" calls. Figure a 5 minute call costs $7 to deal with, 10 $15, and 30 $25. Just how many people do you expect to pay, how much capacity you put in place, how much you train, and how aggressively you try to acquire customers ... You guess, and try to break even. At that point, you can start to sell PC's, and offer this really cool help desk thingie as a "free value worth" whatever the hell they sell it for. I don't disagree with your estimate of $10K / mo. But you don't need incidents per month to cover, you need someone to pay $30 / month, and not use the service ... See ya'. rr