 aaronwtPremium
join:2004-11-07
Woodbridge, VA
 ·Verizon FiOS
| They said they netted $3.35.. So doesn't that mean after all their fees, that was their profit? If they lost money their net would be negative.
So the phone brought in close to $1500. It might be different if they were losing money on it, but they made a few bucks. As long as they make money or break even there should be no reason to remove the pay phone. |
|
| They might have meant "netted" as in catching something with a net... in this case, coins.
Even if it was net income after expenses, $3.35 out of a $1500 is 0.2% return on investment and companies usually axe projects that perform below 8-10%. The $1500 that goes in the phone booth to generate $3.35 profit would have generated ~$150 if the company had invested it elsewhere so... so, although the phone itself may be profitable, the company is still eating a ~$146.25 opportunity loss from maintaining it. |
|
| reply to aaronwt
Revenue is not Profit.
$3.35 is probably what was in the coin box. |
|
openbox9Premium
join:2004-01-26
japan
kudos:2 | reply to aaronwt
Nope. Two phones separated by around 25 minutes of travel time lost just over $1450 during 2011. said by Journalstar.com :The two pay phones generated a total of $19.58 in 2011, with less than half of that coming in as quarters and dimes for local calls. Long-distance carriers paid the rest.
The company told the commission it spent $1,469 maintaining them that same year. That includes checking the coin boxes, repairing damage and paying for dial tones, surcharges, fees, taxes and phone books, Woods said.
In all, a $1,450 hit. It sure we be nice if Karl Bode  quote more relevant portions of these sources. |
|
