An Example of Losses Due to Pin &
Red Box Fraud
REVENUE ASSUMPTIONS:
| Total Coin Operated Stations |
1000 |
| Average Number Of Coin Calls Per Day Per Station |
10 |
| Total Number Of Coin Calls Per Day |
10,000 |
| Daily Percentage Of Pin / Redbox frauds |
0.1% or 100 Frauds |
| Average Loss Per Fraudulent Usage |
$ 2.00 |
| Expected Daily Revenue Loss |
$200 |
| Average Commission Paid To Agent |
6% |
| Additional Daily Loss Due To Commissions Paid On
Fraudulent Usage |
$ 12 |
| Total Expected Daily Revenue Loss Due To Pin / Redbox
Fraud |
$ 212 |
MAINTENANCE ASSUMPTIONS:
| Approximate Number Of Handsets Replaced Yearly |
500 |
| Estimated Number Of Handsets Replaced Due To Pin Fraud
Attempts |
5% or 25 |
| 25 Handsets Replaced Yearly Due To Pin Fraud @ $ 12.00
Each |
$ 300 |
| Estimated Loaded Labor Costs Per Maintenance Visit |
$50 |
| Yearly Maintenance Costs to Replaced Damaged Handsets
Due To Pin Fraud |
$ 1,250 |
|
|
|
|
|
|
|
|
Total Expected Yearly Revenue Loss Due To Pin / Redbox Fraud - $
77,380
Total Expected Yearly Maintenance Costs Due To Pin Fraud ------- $
1,550
Total Yearly Costs
--------------------------------------------------------------- $ 78,930
Copyright 1995 - 2007 Sierra Custom Electronics,
Inc.
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