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Tuesday, October 13, 2020 4:47:44 PM
I believe you're figures are far from the case, in some cases I believe their costs will be almost nothing while they receive substantial money. I believe that's the case especially after a Level 3 distributor is set up.
I cannot say how much of the cost of setting up a Level 3 distributorship is paid for by that distributor, whether PCTL goes into it's pocket in providing all the equipment and support it does in getting set up I can't say. Once in operation, that distributor pays monthly for the use of the generator, plus a royalty for each gallon the generator produces. That's money coming into the company at no cost to them. If the distributor wishes to use PCTL's 1 gallon bottles, I'm sure they're paid for, probably on a cost plus basis. The distributor is free to purchase from the company, or anyone else.
In the case of Level 1, they purchase and resell products from the company, and they participate in the leasing of equipment, like the Annihilyzer's, to hospitals, etc. Level 2's can do all that Level 1's can, plus they can rebottle product under their own labels, so many creative products have been made by Level 2 distributors. Again, I believe the profit margins to PCTL are substantially greater than you'd have us believe.
Gary
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