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To: REW who wrote (14472)1/10/1999 7:04:00 PM
From: ztect  Read Replies (1) | Respond to of 44908
 
REW-

Interesting to do would be to take the cost to the consumer of PromoCard + MusicCard (reload) times 25 cd's at $10.99

(5 cd's are from promo, 20 from music card]

Doing the math:

PC- 0
MC- $10.00
Cd's- 25 x $10.99= $274.75

Total cost to consumer (excluding shipping) = $284.74

Figure five purchases of 5 cds so cost of shipping equals

$2 for first cd + $1 each for 4 cd's = $6.00 per shipment

Total Shipping Costs = $30.00

Tax savings equal approx. 7% of $284.74 = $19.93

So, in essence, shipping costs are largely offset by tax savings. Nonetheless, not factoring tax savings,

totals for Promocard [PC}+ MusicCard [MC] + 25 cd's = $314.74

Total cost per CD = $12.59

Total cost per CD (excluding shipping)= $11.39

Real added cost to consumer for "The Card" = $11.39- $10.99 or $0.40 per CD.

$0.40 per CD costs for the consumer introduced to Compact Connections by a 5 Cd PromoCard

Now check this out

209.143.231.219 (An internet search engine for finding the best prices...bottomdollar.com).

Find the "best price" for all participating CD "e-tailors" for new releases.

I checked out Sheryl Crow's "The Globe Sessions"

Best price found from Amazon was $12.58 (excluding shipping)

Savings with cost of card factored in is $1.19.....

The PromoCard in conjunction with a reloaded MusicCard means savings for the consumer.....

AND THAT'S THE REAL BOTTOMLINE

Consumer's will be introduced via the card and retained because of the prices. Profits will be generated through both card and cd sales. The card will also save on the high cost of advertising. My main point then is lets have more PromoCards.

ztect