RE: Reread of sunpoop`s report./``You guys``/ NOT EXACTLY TK
posted on
Dec 25, 2005 06:36AM
Also it was not mentioned if EDig will be getting a ``cut`` from the refreshing of content. My thoughts are ``NO``. The reason being is RP stressed over and over that this ``closed system`` and ``business plan`` was carefully thought out to absolutely minimize any further EDig involvement after the initial ``sale`` ``rental`` A docking station is provided as part of the initial package. When content refreshment is necessary or desireable, the COMPANY THAT IS RENTING THE UNITS, contacts the content providing company that EDig has put the company in contact with and has content refreshed according to the menu IT WISHES. EDig has no involvement in this process, therefore no ``cut`` on whatever content the company desires.
The financial partner will approve and fund the intial ``purchase``, ``rental``. I think that HAS to be since RP stated quite forcefully, ``EDig will not do upfront funding for any customer who wishes to obtain the VU`` I am quite sure, although not mentioned, there will be some sort of a ``down payment`` from the ordering company. I do not think a customer will simply say, ``start shipping, and my first rental payment is WHEN``? This business plan is too well thought out for EDig to ship a bunch of units to a customer without any financial upfront committment from that customer.
The only revenues EDig will be receiving that were mentioned to me are the monthly payements from customers. Not mentioned but I am sure would be in the mix is repair of the unit once the warranty is over. AS RP stated ``This is a win, win, situation.`` Our financial partner gets its monthly cut and we cut ours with no further labor on either of our parts.``
My understanding of what will be happening, the customer will NOT be charging any rental fee, at least in the medical area, for the use of the MEdEVU by whoever it passes it out to. AFter surgery, dialisys, etc....The customer MAY WISH TO RECEIVE REVENUE from the units but it will be BY THE CUSTOMER contacting, say a drug company to put an ad in the MV. (which sounds to me to be a slam dunk). But I iterate EDig will have no part in that transaction.
The idea of the ``closed end system`` is to ensure ALL EDIG REALLY HAS TO DO IS SIT BACK AND COLLECT ITS MONTHLY FEE. A fee it gets from its financial partner. In fact if the customer doesn`t pay its monthly stipend then its the financial partners responsibility to go after them, not EDigs. EDig will not hire ANY NEW PEOPLE, NO ONE NEW IN ACCOUNTING OR ANY OTHER DEPARTMENT. As RP said however, ``as the company grows we will have to hire new people to sustain that growth``.
TK, hope this is a bit of clarification, FRank