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<p>[QUOTE=&quot;Conder101, post: 1752652, member: 66&quot;]And what is their overhead?&nbsp; What percentage of coin do they send out that are never paid for or returned?&nbsp; I&#039;m sure approval sales have a high loss rate.</p><p>&nbsp;</p><p><br /></p><p>Littleton takes out flyer ads in newspapers and magazines all over the country at costs of tens of thousands of dollars per ad per issue per newspaper.&nbsp; Provident does not do this.&nbsp; Their advertising budget is probably a very tiny fraction of what Littleton&#039;s is.&nbsp; Also their sales of these generic coins such as that silver dollar are probably much greater than that of Littleton so Littleton has a lot more advertising expense tied up per coin than Provident does.</p><p>&nbsp;</p><p><br /></p><p>Wal-Marts customer base is maybe 250 million people while Littletons is probably under 100K.&nbsp; So even with all the advertising they do, Wal-Marts advertising cost per customer is probably less than Littleton&#039;s.&nbsp; There are also economies of scale to consider as well.&nbsp; Wal-mart carries a lot more items and makes a LOT more sales so they can make a smaller profit per item and still end up with a MUCH greater profit.</p><p>&nbsp;</p><p>You are still young and have a lot to learn yet about business and marketing.&nbsp; Littleton is not doing anything wrong, and probably not even unethical.&nbsp; They have a business model that is working for them and has been successful for a long time.&nbsp; They are about the only company in that niche market.&nbsp; If it was easy to operate the way they do, but charge much lower prices, and still make a good profit, more than likely someone would have moved in and cleaned their clock a long time ago.&nbsp; If you really think it can be done, then there is a business opportunity for you, go clean their clock.[/QUOTE]</p><p><br /></p>

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