Buying a Wide Moat in a Consolidating Industry

Okay. And so as the uptake. As it. There's uptake, there will. That number will grow.

Exactly.

Yeah. It was it was a higher percentage of revenue prior to the acquisition of this other business. About a month ago it was over 70%. But obviously they didn't do service.

So, you know, we expect that number. I don't know if it will get back up to 70%. That 20% gap's a big gap to fill, but it's certainly going to be a lot higher than 50% as we start getting like more and more conversion from their customer base onto ours, which we've already seen on the service side.

But in fact, when you bought lss, just. Just the platform, not the acquisition, it already was 70% recurring revenue, service revenue.

It was like 68%. So 7. Basically 70%. Yeah.

And so your pricing model change was less about increasing recurring revenue because you already were substantially a recurring revenue business. It was more just about increasing lifetime value.

Yeah. And winning more net new customers. Because we didn't, you know, there were opportunities that we would lose, particularly in for really big contracts. Right. Because bigger industry players can go down a little bit more on their price.

But, you know, we just hadn't thought of it. I actually hadn't thought of it. It was one of my board members ideas and it was a fantastic idea to do this.

We just had never said, like, let's sell the AED at a loss, but tell them they have to get service. And now every time we do it, people are like, yeah, why wouldn't I buy this AED for almost free? And then these people are going to come in behind it and like, take care of it.

And it's still going to cost me less than if I bought the thing outright. Like, no brainer. Sign me up. So we started doing that a lot more.