Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (7790)	10/5/1998 10:16:00 AM
From: BitWizrd	Respond to of 8545

Actually, CheckFree will continue to lose money at $0.30 per transaction until some real volume starts to build up. Once economies of scale kick in, CheckFree will be able to lower that price to make the product even more attractive and still make a profit off of each transaction. The $0.30 price tag has more to do with the cost of postage than with CheckFree's actual cost. When they began, they sort of ignored the COGS equivalent of the product. They figured if they priced it below first class postage, no biller of any size could possibly object to the price. Pretty smart. Especially since many large billers may spend close to $3.00 per customer per month on invoicing. Bit.