Replies to post #45734 on VirTra Inc (VTSI)

[gilead23]

This is good news

We will see how it goes but I think this is what they need to be doing. I own another stock CODA that sells real time 3d sonar solutions for various purposes (oil and gas work, bridge inspections etc).

Their equipment is expensive to the tune of hundreds of thousands per unit not too different than VTSI. They started a rental program that has been a huge success. Oil and gas companies that are sensitive to capex are more willing to rent equipment. The result has been considerably higher margins and stabilizing sales even in a terrible offshore market.

VTSI seems to be similarly situated. It's a lot easier to get a $20,000 appropriation for a small department than it is to get $300,000 plus its a recurring revenue stream.


It's a strategy shift so we will see what happens but this seems like a smart business move.

[avocado]

I can speak from personal experience that Subscription works, and works well. Our niche market software for used booksellers struggled to make us any decent amount of money from our first release in December 1998. Some years we did well, others were a bust. Then we switched to SAS in 2012 (monthly subscription) and since then have experienced a steady stream of profitable revenue. Because we are lazy we have to maximized the revenue like we could, but at least we made money every year. Just increased prices for the first time in February, revenue will increase by about 30% over what we did before. We are now finally starting to take advantage of SAS by developing and releasing new apps that we can charge for.