NOR 4.26% 4.5¢ norwood systems limited

News: NOR Norwood Systems says Amit Pau appointed Chairman, page-241

  1. 5,017 Posts.
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    Absolutely and I dont disagree that all businesses are trying to save costs. Some are likely looking at employee communications as well. As you say, one of the parts and quite a large one is indeed the administration. Whether the provisioning of new services, ordering of handsets, accessories, call restriction, repair etc. The bigger the company, like so many things, the more complex and expensive this becomes - before you even start to consider the cost of calls.

    But I guess this is my point as well. The call and sms component, is only small part of the service expense and in my experiences, in an increasingly smaller one (as call and sms inclusions grow, or are now unlimited) with other costs (handsets specifically) going up.

    At $20 a month for all the calls and all the text messages made, separating business vs personal usage becomes questionable from a cost benefit point of view imo. The business might just choose to pay the entire bill (private and business use) than try and pay a provider for a tool to recoup such a small amount.

    I have experience managing and supporting corporate mobile services to various employee's both operational staff in the field, through to senior executives. I came to the view that the roaming 'solution' that NOR came to market with a few years ago looked like a solution needing a problem. So far, this seems to have been the case.

    I worry that again, we are seeing a similar story play out. My take is just that the call/messaging component of an employee communication solution is just not the biggest/easiest cost to try and squeeze at the moment. Obviously NOR have felt differently and I think they have posted on here as such.

    Again, I don't doubt they have a solution, that will suit some business of a certain size, needing a certain set of requirements. The concern I have would be, how much of a margin can they make providing such services. If they are going to try and rebill the call or sms volume, they immediately have to compete with the big telco's. Not an easy fight.

    If they are providing more employee communications management and billing solutions, this could work, but its a low margin, high transaction type business. There are also any number of other expense solutions, communications platforms and system that perform some or many of the functions being claimed.

    To gain new customers - as has been demonstrated thus far - is really really tough. There are big competitors, customers already have existing suppliers of mobile, telecommunication and financial systems, these suppliers want to retain their customers. They wont take kindly to them being snatched away and are no doubt actively trying to 'solve their customers problems' as well.

    Its a tough gig, and for me .. still not one I am willing to punt on with not much cash and a $20m+ valuation. Each to their own though, good luck with your punt though and I hope you manage to compound your sheckles in due course.
    Last edited by webbj: 05/03/17
 
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