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Microcap & Penny Stocks : CSHK CASHCO MANAGEMENT Y2K -- Ignore unavailable to you. Want to Upgrade?

To: Michael Sphar who wrote (3947)	6/6/1998 5:02:00 AM
From: EL KABONG!!!	Read Replies (3) \| Respond to of 7491

Michael Sphar, If the 40,000 copies are all internet downloads, then there is little to no direct production costs to Cashco. Almost all costs would be to Zitec, and most would be upfront investments like servers, disks etc... Monthly costs would be like the T1 communications lines and credit card charges (the vendors pay the credit card issuers a percentage of each transaction, usually about 2% to 5% depending on the issuer). Zitec would keep track of the number of paid downloads with some sort of counter and provide Cashco with some sort of audited report that would verify the numbers. When 40,000 is reached, a new contract or a contract renewal would take place. And the process could repeat itself over and over for the duration of the life cycle of the product. Cashco's costs might be in market advertising for the product and making sure the product stays competitive. If we're talking CD-ROM, the cost can vary widely from just a few cents per CD-ROM to maybe as high as $10 or even $15 per CD-ROM. The costs will vary by supplier and total numbers of CD-ROMS churned out in a single run. How many bytes does the vendor need to pack on each copy? That will also affect the price. How many will be wasted because they become obsolete and are replaced by an updated version? Distribution costs to retailers must be considered. Storage costs are a factor. Damaged or defective copies are a cost item. There's a lot more to consider. Packaging and labeling, insurance and on and on and on... The $10 to $15 per copy is just my guesstimate. I'm sure that other posters may be able to get more accurate information from an established company that markets their products through the retail stores using CD-ROMS. KJC