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Originally Posted by davecummings
Or the guys who don't want their wife to see the charge on a credit card bill that they open up while the guy's at work??? If he can use cash to buy the pre-paid card separately, it won't show up on the billing and he can't later refute a credit card--hence, no Credit Card chargeback??????
Dave
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There are a few initial thoughts:
Profit in the product. If it is to be sold in an adult store, the wholesale price will be less than $10 for a $24.95 price point product. I have yet to see an adult store that does not retail price it's products less than 2 1/2 times cost.
Delivery of the product. I can assume that distributors are going to receive a discounted price on that, so the cards will be a few dollars less than that... so $6-7 dollars. Now the costs from this company to do business... bringing the net profit to be split among the provider and web developer to maybe $3.
Acceptance of the product. As many people have indicated in this thread and other threads, this idea has been tried many times before. I remember adult stores attempting this as far back as 98/99. Every time a product similar to this has come on the market it has been an extremely hard sell to consumers, and typically has to be blown out because of lack of consumer interest. So now you also deal with part of your sales force (adult stores) not wanting to try this product again.
Not to mention the amount of money it will take to brand this company and educate consumers. I'm glad I don't own stock in this, since it's a product that has an uphill battle for acceptance.
The only benefit I could see is if I am prepaid for sales of the card, while they sits on a store shelf gaining dust. But the added hassle of adding a this type of service, then changing it once it fails seems hardly worth the $2.
Maybe i'm missing a few things here?