Yesterday’s news, below, for BSD Medical is much more important than is evident just from this announcement. It provides an example of why it is so important to dig deep. The announcement is about a single sale of an MTX-180, a relatively inexpensive product in BSD Medical’s line of equipment. I believe the MTX-180 is something like only $40 to $50K at “retail” (caution – guesstimates). And, since Appleton is a distributor, this sale would indicate something like $30 K to BSD Medical – is that really worth a news item? YES! But, the reason is not obvious to anyone not well-versed in BSD Medical’s marketing situation. Appleton bought this unit *not for resale* but for their *own use* in participating in BSDM’s fee-per-use-program! This unique program is going very well, and Appleton’s decision is good proof (along with other strong indications -- such as a 400% jump, over 90 days, in sales of related disposables!).
http://finance.yahoo.com/news/appleton-medical-services-inc-purchases-130000781.html
From the first paragraph:
“BSD Medical Corporation (BSDM) (Company or BSD) (www.BSDMedical.com), a leading provider of medical systems that utilize heat therapy to treat cancer, announced today that Appleton Medical Services, Inc. (Appleton) has purchased an additional MicroThermX® Microwave Ablation System (MicroThermX®). Appleton purchased the additional MicroThermX® for use in key institutions within their distribution area.”
Note: “additional MicroThermX® for use in key institutions within their distribution area.” Appleton bought their first unit for the fee-per-use program a short while back, and it is now evident that has gone well for them (and others, as well, since the sales of disposables has skyrocketed), because they already need another unit to supply the demand! This announcement, deservedly, got a lot of attention yesterday on the Y! BSDM board and the IV BSDM board). Here are few especially pertinent comments from the Y! board:
alsoRay (an alias of pleonastic): >>"A purchase of an MTX-180 by an institution would indicate high usage at a single location which is preferable." (fwhco)
Yes. But, hospitals know that initial usage of a newly introduced product for an emerging therapy will, for some hard-to-estimate period, be infrequent. So, especially in a recession, they are reluctant to purchase -- safer to rent, and even safer to use on a fee-per-use basis. The FPU plan is just a "stepping stone" -- but VERY important, both for profitable sales (as seen as a profit center) and for the introductory stage for the MTX-180. And, BSD M continues to offer leases and outright sales! The FPU plan is a very powerful way to soon generate outright sales!
The FPU plan is particularly suitable to the MTX-180, since it is so small and lightweight for swapping around to various places -- and the disposables and fees are so lucrative.<<
alsoRay: >"A purchase of an MTX-180 by an institution would indicate high usage at a single location which is preferable." (fwhco)
Another consideration: If the institution begins to use the MTX-180 more than a few times a week -- or even month -- they will easily see the profit advantage in buying a unit. And, BSD M will have gotten much more income than by an upfront sale!< |
