The use of resellers to sell SaaS has not worked. Other IoT companies (eg BUD) have experienced the same. It‘s all down to the lack of margin available. Resellers would struggle to cover sales costs. And when you look at the wholesale model (eg Dicker Data) it’s even worse. Dicker Data didn’t get going with either CT1 or BUD.
I hope the statements that resellers relationships have been “reinvigorated” and there’s genuine “confidence” in meaningful revenue opportunities are true. They suggest shareholders can expect to see increased sales.
I don’t recall the company announcing its shipment monitoring business model. I would expect a change from pure SaaS approach. It’s better to give resellers a sugar hit upfront through a bigger margin on hardware purchase. I think there’s significant potential here to change things. I hope they are talking with the major firms who sell the refrigerated truck and van bodies. Win them over and the company will capture the market.
Yak.
CT1 Price at posting:
1.2¢ Sentiment: Hold Disclosure: Held
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