The Green Sheet :: GS Archives

Purchase or Lease?

CellGate (see issue 990701) has expanded its pricing model to include a "Purchase Plan" which can offer a significant upside revenue sharing opportunity. CellGate still offers the deployment plan and the master plan but the purchase plan has been added to offer greater flexibility.

While the "Deployment Plan" may still be the best option for widespread telesales market penetration, or niche-market opportunities, direct sales or new sales efforts might be best off with the new "Purchase Plan" option.

The Deployment Plan has no direct cost to the client for the equipment.

Merchant Service Agreement -36 month term.
$29.95 per month (average) Service Fee to Merchant.
$25.00 Activation fee billed to CLIENT.
CLIENT keeps 100% of Activation Fee received from the Merchant.
CLIENT receives monthly rebate for "Live" Merchant devices
CellGate bills Merchant monthly via ACH.

The Purchase Plan is designed for direct sales efforts, or new merchant sales, where the CLIENT has a buy rate for equipment, service activation, and monthly service fees. (All prices below are for the CBF 2000, a Cellular Digital Packet Data device with an integrated CDPD modem with proprietary firmware from AT&T that works with any dial terminal or application.)

Quantity Purchase Price

12 $349.95

144 $329.95

600 or more $299.95

u Merchant Service Agreement - Month to Month.
u $19.95 per month CellGate Service Fee to Merchant.

For service fees quoted above $19.95 per month, the following Service Fee Split will be provided:

u 50/50 Service Fee Split on deployment < 1,000
u 60/40 Service Fee Split on deployment 1,001-5,000
u 70/30 Service Fee Split on deployment 5,001-10,000
u 100/0 Service Fee Split on deployment 20,000+
u 25.00 Activation Fee billed to Merchant.
u CLIENT keeps 100% of Activation fee received from Merchant greater than $25.00.

If the Deployment or Purchase plan isn't for you, maybe the Master Plan has what you need. This plan caters to the CLIENT that wants to retain complete control of the sales process, billing, and merchant relationship. The CLIENT assumes liability for all devices deployed.

u Merchant Service Agreement - 36 month term.
u $27.95 per month CellGate Service Fee billed to CLIENT.
u CLIENT keeps 100% of monthly CellGate Service Fee greater than $27.95 received from the Merchant.
u $25.00 Activation fee billed to CLIENT.
u CLIENT keeps 100% of Activation Fee greater than $25.00 received from the Merchant.
u CellGate bills CLIENT monthly via ACH.
u Minimum commitment of 1,000 devices during term of agreement.

Current CellGate Certified terminals include VeriFone 330 and 380; Hypercom T7P, T7E. Soon to be certified are Dassault Talento and Nurit 2080 and 2085.

CellGate Technologies can be reached at (561) 999-9077, or on the Web at www.cellgate.com.

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