Here are the few mistakes I think they made:
- First, when collection sites started in December, they should have been spending money on advertising to drive more people to these collection sites. Yes, the spend rate will be a little higher but they should be selling more testings and more people on the client list.
- The second mistake was not hiring professional people to install, manage and market collection sites.
- The third mistake was taking about 500-1000 collection sites installed, setting expectations very high.
I am calling on the management to start investing in advertising collection sites. If people don't know about collection sites, how they expect a lineup? This is their biggest mistake and can be corrected easily. Every day gone by is wasting time doing nothing. Promoting collecting sites is more impotent than Medivolve stock.
Any money they spend advertising collection sites can be recovered by selling few extra tests at each site. Plus, you get more people on the client list for telehealth.
Yes, revenue is good when you compare this venture started in December. People are disappointed because the expectations were set very high. Other than that $15-$20 million revenue per quarter is reasonable growth. Covid-19 cases are on the rise again and collection sites need to be ready. Also, Biden GOVT is paying more now for vaccination $40 per shot. Maybe start offering vaccination service along with testing.