- Agent buys Kit of 1500 cards for $125
- Agent then sells Kit of cards to store for $250
- Store sells Kit of cards for $1500 ($1 per card)
- Store pays out prizes of $975 to winners
- Agent profit per Kit $125
- Store profit per Kit $275
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- Retailer purchases 1500 cards for $250
- Retailer sells 1500 cards for $1 each and brings in a total of $1500
- Retailer pays out 65% of revenue in payouts, of $975
- Retailers gross profit: $1500-$975 = $525
- Retailers net profit: $525-$250 = $275
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