GREY:LGLTF - Post by User
Comment by
schoolboyon Feb 26, 2016 1:55pm
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Post# 24599406
RE:RE:RE:RE:RE:RE:RE:RE:RE:Q4 & Annual Financial Results
RE:RE:RE:RE:RE:RE:RE:RE:RE:Q4 & Annual Financial ResultsI understand that Uhak and Kim Okran have been enjoying a 70% commission rate. All agents know the situation and won't refer students without ridiculously high commission rates. 30% net is way below cost. Even if those agencies do pay their bills - which seems unlikely at this point - it's not a sustainable model. How good can your true accounts receivable be when you are giving away almost three quarters of your gross revenue just to acquire a customer?
The agents are hoping that KGIC will go belly up before collecting from then. Other schools will be forced to train out the students for free and the agents will keep the money.
KGIC can continue to reduce their payroll but leases are usually for at least five or ten years.
Rinch. you're certainly right about banx. He doesn't have a clue about this business.I look forward to his logical and professional explanation of why this is good.