RDF 0.00% 95.8¢ redflex holdings limited

Prime, Nestor have been quoting a lot of loss making prices, one...

  1. 688 Posts.
    Prime, Nestor have been quoting a lot of loss making prices, one of their few wins recently was Alpharetta also in Georgia at $3.9K a month, Their economies of scale ae lousy and that coupled with their low citation rate would make that $3.9K breakeven at best.

    Now all of a sudden they are quoting $5.7K in Brunswick. My reading is that the contract did not go out to tender and was sole sourced to Nestor who decided to screw the city, Redflex heard about it, went in and belted them up price wise and won the contract.
    Only a small contract as you say but maybe Redflex is sending out a message?

    I'm pretty sure in Georgia that the cities have to pay for the systems themselves thus prices to the contractors have always been lower than elsewhere. With no up front costs and the higher capture rate of the Redflex systems this should be quite a profitable contract for RTS.

    http://www.thebrunswicknews.com/front/283016382270842.php
 
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