RE:RE:CEO interviewThe one missed item that people are missing.......
The old stand by....................................The new kid......
Expensive..............................................Extremely cheap
Requires helium (getting more expensive)........no helium requirement
Extreme consumer of electricity...............almost non-existant
Periodic maintence could be down for extended times........company could courier replacement in 24 hours
Entended time to get information...........less time than your 1 hour lunch break or coffe break
recurring usage fees...NONE.................$50.00...could increase over time (and it wiil)
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The big one
At what point does the MIR become become a relic to medicine
At what time does a potential buyer see that the usage per machine is going up per month.
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This is the real number you want...the usage per month. Microsoft learned a long time ago that subscrption based software had more benifits than you can imagine...why sell a program for $300.00 that you have to A) get manufactured B) get distributed C) ensure it's theft/pirate free D) pay someone else to sell it. Now they still do some of that but the largest amount of their software like Office 365 is done online only. So they can produce the online software and don't have to pay many of the associated cost of years gone by.
This is no different....every use is a subscription a user fee that you rally want to see increase over time.......20 uses a week....to 25 uses a week.....to 50 uses a week.....till they need another machine...and that subscription base goes up and will continue to go up.
Just for fun lets do this so you get an idea
12,000 machines in 4 years..(lease units only)
forget the leases/sales numbers...we'll say that covers all the operating expenses/manufacturing/etc..etc...etc.
now it's subsriptions/usages only
daily use 6 times (going as lean as I can)
fee $50.00
220 days a year...(holidays staffing etc)
Your looking at $792,000,000 in income from 12,000 units
increase your fee charge to $55.00 and your looking $871,200,000.00..that's an incease of $79,200,000.00
increase your fee charge to $65.00 and your looking at $1,029,600,000.00.....
When you can increase a fee by just $5.00 and add just shy of $80 million to your bottom line it soon becomes evident this would be a take out company.....George would be well aware of this and I am sure the companies he has mentioned are aware of this. Not to bring names into the picture but what do you think made Warren Buffet buy into microsoft when he did.....After all computers back then were for business's and were cost prohibitive to say the least. An Epson computer with 4 meg of memory ran for $4,000.00 in around 1986-1989 and you had to load the operating system every time you used it. Today it's pretty hard to find a house or person without not one but multiple devices. While devices got cheaper the software went up in price.
I know it's hard to see sometimes but at some point more people are going to wake up to VPT as it becomes more established and more of a standard.
old_dog