RE: RE: It also happens Aeroplan still needs resellers for the smaller merchant category. Maybe they can work something out with Futura, the infrastructure is there. If another company wants to be a reseller it will be a steep learning curve and with large start-up costs. Need to integrate a platform with all of the 4 frequent flyer programs in the US. POS connectivity solutions must be developed to handle the transaction. Marketing services provided to retailers will be required. It's hard to believe that simply dropping a loyalty program into the laps of merchants will suffice, with no follow-up or courtesy calls.
Then any new company wishing to be a reseller have to wonder if it will be profitable, noting that both ADX and FUT are barely making it with Aeroplan. The gross margins on their financial statements do not include processing costs, etc. The GM only shows how much was earned after paying Aeroplan their share of the 5 cents/mile.
The return on capital will be slim. Signing up merchants one by one was both time consuming and not cost efficient. I don't expect Futura to sign-on national chains like Ok Tire every month, but the minimum 15 retail location idea per mechant came about as a direct result of what was not working before.
It's almost like a grocery store which has to move products bigtime to make money because the margins are slim. Futura needs the volume to make it happen.
But first they have to survive somehow. Otherwise there's no point talking about the future. It could be another business venture. But worst of all, no business at all. It all boils down what the creditors want. To be paid now, or let Futura continue in some form.