Monday, June 14, 2021 3:54:16 PM
The real question is, how do we make money. I believe it's in many ways, certainly direct product sales can be big. The question is, are we better off supplying them with product, or signing them up as a Level 3 distributor, and letting them make the product for their own use.
There is little doubt in my mind that we receive more from a product order than what we're paid when a Level 3 distributor makes product for themselves, but in the long run I believe we benefit by all the distributor will do over what the company could do without the distributor.
We could potentially put tens of thousands of generators in the hands of petroleum and agricultural operators, each one would primarily be making product that they would use for themselves. Up front, money would be needed to build all the generators, as distributorships don't pay the full cost of building the generator up front. Long term, each generator becomes a profit center for the company. The key is giving the company the time to allow it to prove that oil and agricultural production benefit from the use of our product. Once that is established, it simply becomes a matter of, would you like to purchase the product, or would you like to generate it for yourself as you need it. Either way, the company can profit nicely over time.
Gary
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