Posted by: Creede Bighorns
In reply to: Creede Bighorns who wrote msg# 111 Date:3/29/2006 5:27:28 PM
Post #of 112
Hummm, doesn't it seem odd that Labwire would target "Fortune 500 corporations"? Have you ever seen a pinksheet stock set such high ambitions right out of the box? Why would he do that? Well, did you know in the united states, wealth in the richest 1% is greater than the wealth of the lowest 95% combined (United States Federal Reserve, 1995)? That's a pretty shocking bit of trivia...but I bet it's no surprise to Dexter. He knows through experience that the vast majority of the revenue is generated from the top percentage of the clients. He also knows that it is far easier to take special care of one large $500,000 client than twenty $25,000 clients. In the past he saw how the "little fish" can wear you out. All those little clients require much more time, energy, staples, and staffing. And that's how trouble begins. Too much extra leads to too much overhead, which leads to low profit margins.....makes perfect sense, huh?
So, Labwire's first order of business is to keep margins as high as possible (not that's what we want to hear!). The new company, just like the new platform, is streamlined by design. When asked if Labwire would expand to take on more big business, his reply was emphatically "yes", that he several people with very impressive resumes waiting to come on board, but not until the current staff is at full capacity.
Did you guys happen to catch the last PR? Here's the top of it and the link:
biz.yahoo.com
CORRECTING and REPLACING -- Labwire Announces Record Revenues for 2005; Becomes Profitable Ahead of Schedule
Wednesday February 15, 11:28 am ET
Company Anticipates 'Continuing' Revenue Increase in 2006
HOUSTON, Feb. 15, 2006 (PRIMEZONE) -- In the first paragraph of a release dated Feb. 14, 2006, under the same headline, the years for operations and final financial results were stated incorrectly. The corrected version follows.
Labwire Inc. (Other OTC:LBWR.PK - News), a leading Employee Screening Solutions Provider, today announced revenues of $2.6 million dollars for its 2005 fiscal year. The company said the 2005 revenues are record figures in sales volume and revenues. Labwire's total income for 2005(this is the correction...the old PR said 2006) is over eight times greater than the total revenue created the previous year and is its highest revenue level to date according to Dexter Morris, President of Labwire, Inc. In addition, Labwire announced that 2005 operations were profitable to the amount of $173,000, or 6.81% and were reached 6 months ahead of the company's original expectations. Final financial results for 2005 will be released later this week and will be made available at pinksheets.com under the company ticker symbol, Morris said.
Could it be that Labwire became "Profitable Ahead of Schedule" because of low overhead, and large clients?
Labwire's second order of business, is to take very special care of the clients that are brought on board. The staff is expected to do the little things like remembering the CEO's birthdays. Labwire wants to form personally relationships with it's clients that will ensure that the clients stay with Labwire.
Alright, so now we can see that Labwire's course to capturing the majority of the 1.8 billion dollar Employee Screening Solutions Provider market is through bagging the best clients. So, how are we to determine a large contract from a small contract? This is the question I posed to Dexter recently. His answer surprised me. I though he would give a dollar value answer...but, of course, it went deeper.
First of all, he said any contract that Labwire bids on has been predetermined to be of high value to the company and the shareholders. Some of the contracts that are announced from Labwire will be very obvious why they were taken on.....because they are high dollar! Other contracts will be taken on not because of the numbers, but because of the "wow factor" (this is good shareholder news as well. These contracts would be companies that are household names. For example, if NASCAR called Labwire and wanted all of it drivers tested, then Labwire would bid the contact just for the positive press (Dislaimer: Just in case this comes true, I just made this up! lol). Finally, some contracts may be taken on as a "purpose pitch". This means that the contract was taken because of the belief that it most likely a larger contract in the future (Always bear in mind that Dexter has over 23 years of experience in the industry. His connections run very deep into the corporations and the governments.)
To be continued...
GB-ND
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