Wow.
Acquiring Minds
Buying a Wide Moat in a Consolidating Industry
Excerpts · 417 segments · ~1:28:37 long
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Because once we start talking to you about service, you're like, yeah, why don't I want this thing? Like, you're gonna make sure this thing works for me and do all of the maintenance on it and the inspection logs. And God forbid something happens, like, you have to show why you are not liable.
And I'm not, you know, obviously not, like, fully off the hook. I don't want to be out here saying that you can go and like, smash your AED in between, like, service visits or something, and, like, we're going to take the heat for it, but, you know, off the hook in the sense of, like, you did your part, you hired us, and yeah, we're going to show that we did our job in the maintenance. Right. So…
Like, I don't want to deal with that. So it's interesting because if you can take that and then apply the attachment rates and go through the install base and even convert like 20 to 30% of that install base to service, you know, you're growing way faster than low double digits on the ARR side, you're growing much faster, which is exciting.
Absolutely. And we're going to hear about your change in pricing model. I heard you say ARR, which of course is annual recurring revenue.
Yes, which.
And a higher quality revenue. And exactly the. So these other competitors of yours, where they sell AEDs, there is. There is reoccurring business.
People will buy more than one, like a. They'll come back for other AEDs, they'll.
Buy the consumable parts from you. Because AEDs require updated consumable parts every few, few years or every use. So they'll Just go back and they'll buy them from them.
You know, there are other providers out there who have like software services for checking your AEDs, but you know, it requires you to go around and like take a picture of the AEDs. And so if you have one or two AEDs, that's probably fine. If you have like more than 10, 20, 30, you do not want to be doing that. So that's where someone like us really comes in.
Great. Ania. Well, I'm just watching the time and we're getting close to the end here, but there's a few key things that we still haven't touched on. We'll do the pricing model and how you've changed it in just a sec. But first we, we don't yet have a sense of the size of this business. What can you tell us?
Yeah, so we're obviously still in the hold period. We, I haven't obviously exited the business yet and planning to hold for a while. So a little bit more vague than I think what you normally would like.
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