int on boardroom radio , page-16

if ppl really want to get to nuts and bolts of it.. u could make enquiries find out what mgmt at INT deem hardware 'AT COST' to be :

hardware unit cost + contractor install cost...

or

hardware unit cost + contractor install cost + warehousing cost + apportionment of sales staff costs..

etc etc.

what are product maintanence costs?

this type of thing interests me..when the client gets the hardware installed just what exactly are u factoring and recouping at that point from hardware rollout. i know i myself would factor in some apportionment of sales teams and somewhat dissect admin cost a lil too and apportion.

at this stage i can safely assume mgmt is at least recouping unit cost of hardware plus contractor install fees.. leaving themselves with some admin costs they relying on end user annuity streams to catch up with, negate and push into overall profit zone.

so this is what id ask mgmt first and thats the nuts and bolts of it.

discussing whether or not u make 10buks per user per service or 15 or wotever.. i think is a 2ndry question.. what u must ensure as primary is ur survival and ability to roll out the hardware.. then sure all the questions about profit and share price potential then comes into the fray.

end of the day if admin costs are real low and if u get 1million/100million users and its 2 buks a service or 5 buks or 10.. well thats ur profit.

before u get there before u have ur end users rolling in on mass u need to have plan in place that protects ur outlays of which i think this team has.