Just got Ricks response to our emailed question that we sent this morning-
1st email
"We are wondering if you could please help us to understand why Serge said that in the first Q of 2012 Savi made more money than in all of 2011 ?-
This is a constant question on the board and I would like to get a better understanding of where Serges thinking was when he said this--
Please Rick, if you do not know the answer than would you ask Serge to give an answer so that we can address this on the blogs--
Even if the answer is that he made a mistake with his numbers, that would be better than silence on this matter"-
2nd email
"Sorry Rick, I made a mistake in my last question to you about Serges quote about the Sales in the first Q of 2012-
Serge used the word Sales and not Money"-
His quote was -"Our Sales have been greater this year already than they have all of last year"
"Rick Thomas" rick@mediarichmarketing.com
"Those were projected sales not actual sales that were expected during the full year 2012. Not just sales for the month of January. We’ve had ongoing purchase orders but they are spread out over the year. In other words we install Berg ongoing for the year. It’s an open purchase order. Actual sales would be what we installed today/this month. Projected sales would be the number of trucks times the price per unit. If we did 150 trucks in one company’s fleet that would clearly put us ahead of last year’s overall sales which were under $40K.
There are three types of sales processing that are generally used in this type of operation.
1- Budget – what is the company budgeting for the fiscal year. Broken in to quarter and months over that fiscal year. That’s called an annual budget. Once you get in to the year (January) then…
2- Actual – what are the actual sales for the company in that month/quarter. What revenue was booked. Not collected but put on the books.
3- Projected – what are the company’s projected sales. OK so if one company has 150 trucks yet the purchase order only gives us 12 installs per month, you project over that 12 month period of time what your sales are going to be.
So 150 sold DynoValves times let’s say $400 each would be $60,000. Well ahead of last year’s revenue. Throw in the install price and you have another minimum $100 per install times 150 trucks for another $15,000.
But remember we are only installing 12 per month. Not many companies can afford to just write a check for $75,000 but can afford to spread that over 12 months.
So yes what we projected as far as sales certainly outperforms fiscal 2011.
Had I been on board in January I would have had him explain this properly to shareholders. But this is how it works."
AI
