Replies to post #35203 on First American Scientific Corp. (fka FASC)

[TRCPA]

RJ......correct me if I am wrong, but I think your argument is that FASC may be limiting its sales potential by its policy of taking 1/2 down on sales orders.

That may well be.

In the meantime, FASC has and can continue to finance all of its own manufacturing under its current policy of taking 1/2 down on sales....and can therefore handle any and all multiple sales orders under this policy.

As time goes on they may adjust this policy, and perhaps accomodate some companies both large and small that don't wish to put 1/2 down on KDS; and therefore increase its sales base further.

Then again....as the KDS becomes more accepted and prevalent worldwide, maybe this won't be necessary.

Let's see what happens from a sales growth standpoint this year.
At this point, I think its a pretty good policy, myself.

[Net-Man]

rj2 - Interesting post and I too have seen many of the same types of pre-quals in use from both sides of the coin. The fact is though, FASC has a one of a kind product that presumably cannot be duplicated. That would make an interesting situation for pre-qualifying any sales. If a buyer were nervous about the transaction (and who wouldn't be), there are other ways to make certain everything is as expected. I have personally used letters of credit for off-shore purchases. They may be a bit more complicated than writing a check, but they also add a significant security factor.

As TR noted, the machines are basically paid for through the deposit. Personally I like the business model that Cal developed. There are not costs to the company upfront and the profit needs to be banked before the machine is released to the customer. It strikes me as a low cost way to conduct business. Your point regarding high wages and benefits was not lost on me either. That's another sore spot!

fwiw,
Net-Man