Desert Control Finalizes Service Agreement with Golf Club
Desert Control Secures Agreement with Woodland Hills Country Club
Following the earlier announcement regarding a binding Memorandum of Understanding (MoU), Desert Control has officially executed its final service agreement with Woodland Hills Country Club. This strategic partnership is focused on providing a premier water conservation solution tailored for the golf sector, marking a significant step forward in sustainable practices.
Collaboration Goals and Service Implementation
The agreement outlines plans to deploy Desert Control's innovative water conservation technology across 43 acres of the Woodland Hills golf course. This full-scale implementation is set to commence shortly, with the service operational by the next month, thereby establishing a framework for monthly recurring revenue (MRR) for Desert Control.
The service operates under a unique Pay-As-You-Save (PAYS) model. This model allows Desert Control to cover the costs for the setup of the water conservation system while earning revenue based on actual savings generated. Water consumption is monitored and assessed against a predetermined historical baseline, ensuring an accurate calculation of savings and a clear link to revenue. This approach not only provides transparency but also creates a performance-oriented revenue stream that aligns with the value provided to clients.
Financial Implications and Potential Savings
The financial potential of this agreement is substantial, with a projected total value exceeding NOK 8.5 million over five years, provided that water savings surpass 25%. For Woodland Hills Country Club, this initiative will notably lower its major operational expense related to irrigation, all while maintaining the high-quality conditions of the golf course.
According to Marty Weems, Managing Director of Desert Control Americas Inc., the agreement positions both parties for success. He emphasized that this collaboration is designed to alleviate a critical cost center—water expenses—while simultaneously boosting shareholder value through recurring revenue underpinned by verified results. As water costs for irrigation continue to rise, managing these expenses becomes increasingly essential for golf courses. Many clients currently in trial phases report significant reductions in water consumption while upholding optimal course conditions.
Benefits of the Water Conservation Solution
Desert Control's water conservation solution is recognized under major incentive programs aimed at encouraging water-saving measures. The implementation at Woodland Hills is also eligible for financial incentives, which align perfectly with the PAYS model, thereby enhancing the financial returns for these clients.
Strategic Growth and Market Positioning
This agreement also demonstrates Desert Control's efficacy in transforming its project pipeline into actionable, performance-driven revenue streams. This approach enhances the company’s potential for growth, particularly in areas where water conservation is critical. With an established local supply chain and resources sourced within the country, Desert Control is in a strong position to navigate the complexities of international tariffs and market fluctuations.
As this agreement unfolds, Desert Control aims to continue expanding within diverse, high-cost water markets, solidifying its presence in California and beyond. The localized approach not only supports company sustainability but also champions effective water resource management in the long term.
Frequently Asked Questions
What is the primary goal of the agreement with Woodland Hills Country Club?
The main goal is to implement Desert Control's water conservation solution to help reduce irrigation costs while maintaining high-quality golf course conditions.
How does the Pay-As-You-Save (PAYS) model work?
The PAYS model allows Desert Control to fund the initial setup, generating revenue based on the actual water savings achieved by the country club.
What are the projected financial outcomes of this partnership?
The agreement has the potential to yield over NOK 8.5 million in revenue for Desert Control over five years, depending on the savings achieved.
How does Desert Control ensure transparency in billing?
Savings are calculated using verified data from the client's metered water use, ensuring accurate and transparent revenue generation.
What positioning does Desert Control aim for in the market?
Desert Control is focused on expanding its footprint in high-cost water markets and intends to leverage its localized supply chain for further growth.
About The Author
Contact Owen Jenkins privately here. Or send an email with ATTN: Owen Jenkins as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.