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25/03/21
12:27
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Originally posted by Immetoday:
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Do a little research bud....even a quick Google will help - Earnings Peru - AUD$8K per person Earnings Australia - AUD$74K per person QUOTE - "The threat of violent crime in most of Peru is no greater than many of the world's major cities. Traveling around Peru is relatively safe, and the rebel element has been largely disbanded" In 2019 $29.2m was spent on imported security apparatus in Peru.....this includes everything from police riot squad gear to laminated safety gear. Of the total spend 1.8% was spend on "Burglar and fire alarms or similar apparatus" ....this means through the whole of Peru for all things burglar and fire alarm related only $525K was spent. Of this $525K lets say half is fire alarm related (reasonable assumption) so this drops it to $262.5K.....of this amount we need to split among all suppliers in the market servicing the 32m residents (i would say hundreds of suppliers), then you need to reduce that share down by the margin the local supplier gives scout.....then you need to take out the cost of the items leaving just the profit margin Scout works with. For arguments sake let's say there are only 20 security system suppliers in Peru (I would say many more than this buit it's a figure to work with) Annual security system spend of $265.5K/20 = $13K per company $13K less 50% margin for Prosegur - $6.5K $6.5K less 50% margin for Scout......see where I'm going with this? Do the sums however you like but realistically.....the cost of wages for Scout to prepare the Ann that they've announced this with is a pretty large percentyage of what they will make from the deal.
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I didn't think it was a bad starting point, with a growing middle/upper class that will want protection. I was more disappointed that it's a market they have chosen that has no penetration at all as of yet. This means a large amount of time and promotional money required before anything significantly comes from it. I'm still happy to sit on the sidelines until real revenue starts to appear. Milesy