Just cracking out some figures as follows:
Retail Price: AUD $298 - USD $215
Gross Margin % (based on Annual Report - Cost of Sales): 70%
Net Price: AUD $210 - USD $150
SalesForce4Hire - Sales Rep Salary: USD $65,000
SalesForce4Hire - Estimated Revenue per Sales Rep: USD $65,000 x 2.5 - 3.0 = USD $162,500 - $195,000
SalesForce4Hire Estimated Commission % - 40% of Net Price = USD $60
Unit Sales: USD $162,500 - $195,000 / USD $60 = 2,700 - 3,250 Units Sold per Sales Rep
ALT Revenue: 60% of Net Price = USD $90 x 2700 - 3,250 units = USD $243,000 - $292,500
ALT Revenue: AUD $338,000 - $407,000 per Sales Rep.
If the commission rate changed to a 50:50 breakup to SalesForce4Hire we would receive AUD revenue of between 2,166 - 2,600 units = AUD $230,000 - $270,000 per Sales Rep.
Anyway I am interested to get your thoughts on these figures or if you arrive at other figures please post so that we can discuss further.
ALT Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
