The first $ 6.50 goes to the company (International Tesla Electric Company, ITEC). Here is a breakdown of the $ 6.50 to ITEC:
ITEC pays the printing cost of a very professional two piece certificate, all individually numbered in sequence.
ITEC registers each numbered certificate to one of the existing 2,000 dealers in the network.
ITEC generates a mailing and installation list at 60 cents each using an outside service.
ITEC pays the shipping and handling costs to get that registration to the dealer.
Once the dealer issues the registration to a homeowner, ITEC checks that number first to determine if that certificate was issued to that particular dealership, and second, check the install location against duplicated addresses.
ITEC than has to generate a confirmation letter to the homeowner and pay that postage.
ITEC will also have to notify the individual when and where the demonstrations will be when the technology is ready to release.
Now how much profit do you think ITEC will retain after all the man hours, printing costs, shipping costs, and postage required to accomplish this process?
Once the project does launch, ITEC will have to research and qualify local electricians in your area, and call you to coordinate the installation. This is all in addition to an estimated cost of $9,000 per home for the generator, switching gear, freight and installation costs.
ITEC does not make a dime and will probably go into the red until that equipment is on your property and generating power, which they will then sell on the open market for a profit. Is the International Tesla Electric Company motivated to get this job done? You can bet your bottom dollar on that one!
Where does the remaining $6.50 go?
Any labor or long distance cost required to answer any questions (most of which have already been answered through the information available now on this web site).
Labor to fill out the paper work and enter all of the information into a database.
Any long distance costs incurred in making sure all the information submitted is accurate.
The cost for the envelope and postage to mail the top portion of the certificate to the homeowner.
Registered US Mail costs to insure the bottom half of the registration gets back to ITEC.
Best case scenario for this UCSA dealer:
|
$9.00 |
Total cost to you | |
| - 6.50 | My cost for the certificate | |
| - 0.36 | Envelope plus postage back to you | |
| - 0.01 | Advertising cost - costs for special email software, servers to brining the message to you , labor of monitoring the email software, time answering questions emailed to us about the offer | |
| - 1.00 | Processing costs - It takes about 4 hours to process 20 certificates. If I pay $5 per hour for clerical help for 4 hours at a total cost of $20. The steps involve cleaning up the data people entered on the web site (entry in all capitals or all lower case, incorrect format for various fields, missing data which requires research or personal contact to fill in), importing the data into our tracking database, printing the certificates, printing the envelops, stuffing the envelopes, putting postage on envelopes and mailing, sending out a confirmation of registration email, updating the database when the $9 is received, sending out a confirmation email when the $9 is received. This does not include any long distance calls required to get complete information for the certificate. | |
| -0.45 | Services fees to process the payment (PayPal, credit card, or check) | |
| - 0.32 | I always wait until I have at least 10 at a time before sending registered mail back to the company, this is a fair average cost | |
| 0.36 | Potential profit per registration |
It should be obvious to you by now that neither the UCSA dealers or the International Tesla Electric Company is going to make any significant money on this project until we actually launch.