Well.. Frank said it depends on the accountants and how they report, where the cash goes. This tells me they are very close.
Let see if we can fiqure out what is needed to make a nice profit.
Current sale situtuation
Sept 2003 internet sales : $2,304,000
Per month = $256,000
Customers based on $20/month = 12800 customers
My guess it that if you test sufboost… you buy it. So Assume 90% buy after the 15 day test.
300 testers per Frank’s discussion x 90 %= 270 new customers every 15 days or 540 each month or 1620 a quarter.
This is about $32,000 in increased sales per quarter. Or $120,000 per year. That would be 5% increase in sales.
My assumtion is that it cost them very little to incease this business and they have plenty of capacity. We can probably roughly fiqure out when new numbers come out.
I would like to see more customers. I think 2 Q 2004 numbers will be very important. If they start increasing customers in this quarter, by the 4th Q 2004 cash flow payoff of past managers… well nice profit… nice cash flow..
Any input on above numbers welcome.
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