Future sales from Prosegur = PURE PROFIT for INEOINEO has confirmed that all of the pilot projects has been signed by Prosegur which represents 8,000 locations, each location may need several units.
The MAJOR GROWTH will come from this distribution dela with Prosegur as it represents PURE PROFIT for INEO.
It is Prosegur who reimburses us and therefore assumes the cost of the unit. Our cost in this deal for each unit will therefore be NIL.
The sharing of profit is as follows: $ 300 to $ 500 to INEO per unit
So if Prosegur signs retailer to $ 1,000 per month, $ 500 ges to INEO
If Prosegur signs retailer to $ 500 per month, $ 300 goes to INEO
The advantage to INEO in this relationship is ENORMOUS. The $ 300 to $ 500 per month would be pure profit as there is no cost to this. It means INEO will operate like software companies that have 90% margins.
Prosegue has pilot projects with retailers representing 8,000 locations.
The trial period per retailer will vary, some want it 6 months, others 9 months, others 1 year.
After the trial period and a contract is signed, the units are delivered over a period of time.
So a retailer with 500 stores might ask that units be delivered each month over a 6 month period so approximately 100 units per month. It has to be a responsable rollout.
The fact that Prosegur has a presence around the world will open up tremendous opportunities for INEO that they could not do on their own. The distribution deal works well with Prosegur as they take unit for their security business and then expand it to advertising.
For the retailer it represents additional revenue per store as brands will advertise on the Welcome unit and not on facebook or google + they get enchanced security.
It is a WIN situation to the retailer (more profits), a WIN situation for Prosegur (opens up profits and advertising to them) and, a WIN for INEO as business model moves to PURE PROFITS from capital intensive one.
From the news the expansion is accelerating beyond company expectations which means that units are well received by retailers. This is a great sign.
As we move forward towards profitablity in 2024 I expect stock price to start to RALLY.
Good Luck,