rruff, That Labwire has 25 full time employees and to use occasional part time help to formulate a mathematical statistic as if they were full time employees is an obvious error in my opinion . The results of that logic would obviously result in skewed statistics when calculating a revenue/employee formula. milo3
Rrufff, very nice to see you here. I think your post is most excellent as always, and so I hesitate to debate you at all. Of course, but I must, so let me ask you look at at the point the company is trying to make in it's 10-12g.
Labwire’s methods of marketing in this competitive industry consists of traditional marketing ventures, including direct mail campaigns, selective media advertising, and participation in targeted conferences and trade shows. In addition, Labwire is uniquely able to draw upon the extensive experience of its management to capitalize on personal contacts with key industry players and deliver a quick response at critical times. Labwire believes that it has competitive advantages over its competitors with its Labwire™ Platform, which is a proprietary, web-based application that streamlines the complex regulatory and record management activities associated with employee screening, delivering accurate timely results while eliminating service calls and paper trails. All the data is on one page and the software is very easy to learn and use. This comprehensive solution to managing employee screening services is the most efficient and cost-effective platform in the industry and the only one that is currently compliant with HIPPA regulations. The industry average is approximately $175,000 in revenue per employee, while Labwire’s approximately $million per employee.
The company has already made mention of this advantage in the registration statement. Imo, they do so because it's the key to seeing how bright the future looks for Labwire the company. I hate to just "cut and paste", but look what Labwire has to say about the way they are going to do business.
Labwire’s principals have provided client oriented “service philosophy” substance abuse management services for the past 21 years. The Labwire operating platform, which provides modular delivery systems, procedures compliant with HIPAA protocols (unique within the industry), and live user-friendly access to all clients, all while adhering to ISO 9000:2000 certification standards (also unique within the industry). Labwire specifically addresses the concerns generated by the growing “commodity philosophy” currently prevalent within the industry. With the recent acquisition of traditional TPA’s by corporate entities not previously involved in substance abuse management, the need for a return to a service based philosophy is apparent. Labwire’s experienced staff and compliant platform are ready to provide its clients with “Great Service … Period.”
(Feels like Jerry Mcguire doesn't it? lol)
Point being that this second time around, Dexter has built a company that will have fewer clients, and therefore will need fewer employees to service each client. This is how they will provide "Great Service ... Period".
Take the new USIS setup for example. They are the ones having to service their clients. All we have to do is have the ability to provide the services that they need at a price where we can both make it worth while - bearing in mind the price per test will be at USIS's pricing. They could send us 10MM in work, and all we would have do is make sure we have the system in place to make sure we can handle the volume. Did you see this little hint dropped in the PR a few weeks back?
Labwire Management Announces Financial Accomplishments for 2007 Monday April 14, 10:00 am ET
HOUSTON, TX--(MARKET WIRE)--Apr 14, 2008 -- Labwire, Inc.
...We are expanding our platform capacity to ten times our current operational threshold and are excited about the possibilities before us for 2008.
Ten times? Looks to me that they might be expecting quite an influx of business from USIS. And what if they do send us 10 times the business we already have? Will we have to hire a whole bunch of people to handle the work load? Nope. We just have to be prepared to process the data. See, this is the brilliance of experience. This is the Labwire Business model. We get paid letting other people do the work, and we make sure to only select clients that will send us a boatload.
Dexter built Labwire to be streamlined, and imvho his 21 years of hard work is just about to exit the city traffic, and slip out onto the Autobahn. Put on your seat belt. :-)
Oh, and BTW, this is just perfect.
Fortunately, I raise my own tulips as I organically destroy the hidden pests lurking beneath the surface.
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