Ann: Investor Correspondence, page-30

i'll add - this is standard approach for 3rd party sales

there's a master agreement that sets the revenue targets, the respective obligations to the each party

the 'distributor' is then typically given a fair degree of autonomy on how it constructs contracts, prices the offering, bill targets etc - as long as it doesnt compromise the master agreement tenets

thats why you'll see quite different 'end' pricing between different distributors because they target different client and so have different ways of hitting the sales undertakings they give to BUD

eg I talked about benefit of strategic vs tactical selling

tactical selling is where an individual systems or small number is sold to a specific building or buildings

strategic selling is where for eg the distributors focus more on groups responsible for large bundles of assets - pitching a system wide solution to an issue rather than what in sales is called a 'point' solution

the conversations are extremely different

eg. selling to a large multi asset owner like say a govt dept of education - they would look at a combined water/gas/electricty bill of say $150m a year. so a sale might be aimed at delivering at say 450 school/Ohm system that can deliver a ~10% portfolio cost reduction with carbon neutrality by 2020. that kind of thing

if i had to guess id say thats the kind of thing Rizon focuses on - its what small teams of senior execs tend to focus on -a small number of big ticket sales that aim to deliver a strategic benefit thats in line with a client requirement - sometimes part of a wider consulting brief where they also work with the client exec team on other major challenges they face in which they often have no expertise

its rare they want to run a company of hundreds - they leave companies to get away from those headaches of losing all that time to unproductive internal mgt

by contrast a mobile telephony group like Digicel will typically do more point sales to its B2B clients - small clumps of systems that roll out to one or a few buildings

senior execs share a language with other senior execs,

mobile coverage sales people typically talk and mix with low/mid level execs and so their conversations reflect more case by case situations and needs. not many times theyd be in regular contact with a ceo/directors for eg unless its for a business thats built on mobile coverage

the real power of Ohm isnt Ohm - its the Buddy platform backend - the ability to report on and interrogate data across multiple assets at both the individual asset level and the portfolio/portfolio segment level

its more a natural fit for strategic asset mngt - where it will rarely compete with hard industrial tech solutions that develop for heavy industrial settings esp as those typically focus on a specific measurement vector - eg they may capture+manage electricity but not water

it shifts power/transparency out of the hands of the tech and up to the top brass - who can then use that visibility to drive their decision making and budget setting

but obviously its key to be able to piggyback of existing infrastructure measuring/monitoring so there's no blowback from the ground troops in charge of asset mgt.

i see the plug and play solutions Bud's developed to ensure they can piggyback as particularly important because of that