FormerXBC Inc XEBEQ

Telfser Ignorant

[ZouZS3]

Poor little Telfser, he's disappointed & worried because they "arent easy contracts to deliver on. Theyre very capital intensive projects which means there could be cost overruns." He didn't understand that they changed their business model. Their sales focus is on standard products that can be factory produced, tested and shipped and installed in days instead of weeks or months, a huge change from what they used to do. The price point for the product starts at $1.5 million as opposed to $2 million to $4 million for custom-designed and engineered turnkey systems. They aim to produce Biostream units into inventory and sell them throughout the world. Now there is no competitive product. They have basically put everything into one container. Since it's a standard product, they have a price list. The sales people sell over the price list. And that's it. There's no more engineering. It simplifies their operations significantly. It derisks everything.One of the main reasons why they are switching to Biostream is clearly because there is a risk reduction. It's a factory produced product. And once you do this, you have a bill of material. You know your cost. You test the system in the factory. You know it works. And then you deliver it and you know what the delivery time is, the installation time is and the startup time. So everything becomes a lot more predictable. We have a price list. The sales people have a price list. They know for what they have to sell the product. And that's it. There's no more drawing up a preliminary bill of materials to estimate what it will cost to build a project. Take it or leave it. Here is the product. You need two, buy two. Here is the price. And that's it. It's very straightforward. It's a much better business model..