Racing past 2010...

Unless bookies start gearing them differently...they will become extinct...
Reading today, in the sunday star, that my bookmaker turns R12m a month from his 4 outlets....
Sounds like a lot, but then he adds, Average GROSS PROFIT is 8% per month.
Thats +R960k per month before expenses.
It has always been about 8% profit on turnover per year...thats since 1981 when I became involved..
The percentages have not changed...
He continues : 80 staff members...
Well 80 staff members X R5,000 per month = R400k per month.
Add R100k for himself, that brings us to R500k per month..
Must pay rent/security/electricity/telphone of R25,000 x 4 per month = R100k.
We are now at R600K per month..
Add Turfsport, teletrack, advertising, VAT and TAX...R100K per month..
We are at R700K per month..

so, if all goes well he should have R260K left per month...still need to pay COMPANY TAX..

remember that he gets 4% kickback from TAB on the TOTE turnover of R2m per site..thats R80K per site from the tote..

remember that the soccer is over for a while..the turnover from NIGERIANS are down...

keeping all this in mind..
If I had to list his operation on the AltX...what would it be worth..

Very interesting!

4 outlets and 80 staff? do they still use abacus and tally machines? sounds a lot

Morning Anrde, would have also thought that the increase in on-line/Internet betting would reduce staff requiements.

If I think back to Bosman street with all the overheads, staff/building/blower/transport/meals etc, etc
Consider things now, you basically can use a laptop and watch tv?

The Infrastructures have grown due to Sports betting. especially the soccer clients. the problem is that the average bet is around R11.50...hence the staff requirements...be it many staff members for short periods...

most non listed companies run on a matrix like this...That is SPUR, Wimpy..KFC..Pizza shop..Steers..Coffee shop..
The greeks taught the intelectuals..1/3 stock, 1/3 expenses, 1/3 profit

---

% of turnover

---

days of the month

product cost

---

35

---

11

Rent/electricty

---

10

---

3
wages

---

16.5

---

5
vat/insurance/other

---

10

---

3
Gross profit

---

28.5

---

8

when you break the rules, you are stealing from yourself..

Gross profit on bookmakers average 8%...since 1981 when I became involved..

Hence, the business model will have to change...their stock is too expensive..ie.. betting structures are wrong...

If only 1/3 of favorites that are even money or shorter wins....the stock cost lest than 33% and the matrix above works..
Thus, if bookmakers stand only favorites that are even money or shorter..they will become rich..

but..greed and ego gets hold of us all...
Everyone wants to cash in on the soccer and sports betting...but thats what stuffs up the percentage as per the matrix above..Sports betting is not a good business...does not fit into the matrix on percentages....

somewhere during the next few months, the favorites...woods..nadal.federer..serena...venus..Pocket power...and the likes will all win...the bookies will have a bad run for 3 to 4 months...
it happens in cycles...its due now...

It's like all RSA JSE LISTED companies...want to do business in AFRICA..
Only the economy of EGYPT is bigger than that of the economy of GAUTENG..
what the hell do you want to waste time in AFRICA..
CHINA is not doing business in AFRICA...they are stealing them blind..


BETFAIR and the other EU sites are making it..
their customers are using the internet, and dont go into the BETFAIR office...we on the other hand have customers that dont want to use the internet....they know very well how too...and each have many laptops..

Perhaps they know/think that the internet is only used for 419 scams..

hence INTERBET and the likes will survive during the next 2 years..

Thanks again Andrew for you inputs, much appreciated.

Guess....bookies are history soon.....

Good points ,punters that use Iternet via credit card,debit card etc lose a percentage i.e punting stake ,rather use cash at your "local"than throw away money before even having a bet!