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Running at half capacity seems rather optimistic. Especially if business is primarily concentrated in the US timezones then there should be a heavy peak load in
by hugh3 16y ago
Running at half capacity seems rather optimistic. Especially if business is primarily concentrated in the US timezones then there should be a heavy peak load in the evening and not much action in the morning. And if you're regularly overrunning your capacity in the evenings then people are going to get frustrated with your service (imagine going down to the local video store and having them tell you that unfortunately they're completely out of all movies...)
- roel_v 16y agoOK, then add another 250 a day for double the equipment. Now he only needs average occupation of 25% and he's still at break-even, without discounting for the other costs savings that will show up once you start going into that much detail (like only having to have one guy swapping DVD's at night). Like another poster remarked, for $1000 labor a day, with the numbers above, you can get 5 times the amount of dvd players (eliminating labor completely if you have one player for each CD you offer, and I guess you need a help desk...) and still come out to the same numbers. Maybe I'm way off the mark on some of these numbers, I don't know; I'm not familiar with this industry. The 'generic' parts of it are realistic though, I think.