5 ms·
"He says he charges only as much as he must to maintain a razor-thin profit margin." I have a hard time believing this. Does any one have experience in this s
by breitling 12y ago
"He says he charges only as much as he must to maintain a razor-thin profit margin."
I have a hard time believing this. Does any one have experience in this space? The way I understand it, it really shouldn't cost $6+ for an electronic transaction.
- ajiang 12y agoI used to do work in this space and personally diligenced JPay for investment purposes. Their profit margins are low for the same reason most successful startups have no profit - growth. They're growing incredibly fast, investing in sales and marketing efforts (as well as the 'commissions'). Take out the growth aspects, you have a company with very high gross margins.
- jessaustin 12y agoIs this company in any sense a startup? They seem like a utility to me. I've never seen any ads they've run, and I can't imagine an ad volume that would justify $6 emails, so "sales and marketing" seems to be a euphemism for "lobbying, bribery, and personal entertainment slush-fund". This much basically-stolen money being thrown around is bound to erode ethics. It will surprise no one if multiple principals of this firm get to use these services personally within the decade.
- donaldsfone 12y agopEOPLe you're all talking out of total ignorance. Jpay has huge capex - since none of you know anything about business ill explain - they spend millions upon millions of dollars deploying networks and computer banks in prisons for inmates to access these services. Now you know why their margins are high? Understand why they charge for email? If they were gouging customers people would send snail mail. You are all plain dumb. And I'm a former customer who used to pay these damn fees!
- jessaustin 12y agoNice sock-puppet, Shapiro. I hope you lose the rest of your hair.