BUD 0.00% 0.6¢ buddy technologies ltd

Where are we? December 2018, page-26

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    If people go back and read the June quarterly, there were a number of times when pricing changes etc were mentioned, for example:



    Finally, investors are reminded that any future agreement modifications or pricing changes could have a material impact on revenues and cash receipts.  


    Finally, the Company has previously offered guidance that no two Buddy Ohm markets are the same in terms of sales strategy, pricing or go-to-market strategy. To that end, and in line with the stated goal of maximising product sell-through in 2018, management continues to experiment with product pricing and bundling. An “unbundling strategy” – ie: one that supports selling a Buddy Ohm installation more affordably to a customer who only seeks temperature/humidity monitoring, or who only seeks building envelope measurement of electricity consumption, is also being market tested. Such a strategy enables Buddy Ohm to be sold into customers with properties significantly smaller than the previously stated 100,000 square feet (9,290 square metres), and opens up new markets such as quick service restaurants, convenience stores, petrol stations, supermarkets and the like. With the forecast upsell rate and spend from these smaller installations, management is not currently proposing a change to the previously offered guidance of US$750/month blended average per-site revenue for Buddy Ohm, however if the unbundled strategy attracts volume uplift we would expect the blended average per-site revenue rate to start lower but return towards the US$750/month figure within the first year.   


    Management will continue to offer each market the flexibility to sell the appropriate bundle of features and functionality, at a market-appropriate price, in order to maximise unit sell through in 2018.
 
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Currently unlisted public company.

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