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Message: RE: Reread of sunpoop`s report. // sunpoop

RE: Reread of sunpoop`s report. // sunpoop

posted on Dec 25, 2005 09:31AM
It is my understanding that as long as the customer rents the unit the payments will keep coming. That means indefinitely if the customer keeps renting indefintely. That`s the beauty of this business plan...There is no end, there is no EDig involvement, just collect the rents. And if hospital..etc..A ``buy`s`` 200 units and B 500 units and retain them a certain set figure comes to EDig each month for those units. If then A and B keep their units for next year and C and D rent 1,000 and 400, then the revenue from those additional units will be added to the ongoing revenue from A and B....I am sorry to sound so simplistic buy its really very simple. It add to itself as long as the rentals stay constant. And its very attractive for a customer to become involved because there is no heavy outlay of intial funds. I don`t know what the MV or Vu will outright sell for where the ownership is the customers (although that is part of the business plan and could happen) but these units would have to sell outright (since I asked and was NOT TOLD, nor would a ``ball park`` figure be given) for a lot more than the manufacturing cost plus a 200 or 300 dollar mark up.....I would think, from the cost of the DP to the airlines that that figure would have to be close to $2,000. I could be completely wrong on that but it makes sense. Why would EDig plan this on going revenue stream of a business model for customers who rent monthly when a customer could purchase one outright for, say, 700 or 800 dollars.

The monthly rental would preclude that since it would be hard to imagine this plan making anybody, including a financial partner, any money if the monthly rental fee was $20.00 a unit. Therefore I see the monthly rental fee being much more than minimum but not enough to overcome what outright purchasing each unit would be...

RP would not give me figures. Would not go there due to competition reasons, he says. But if you read between the lines and use a little business logic you have to come up with what I have just said....Frank

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