(Total Views: 411)
Posted On: 10/16/2020 11:40:28 AM
Post# of 8421
Re: NOTsteve34 #2676
OEM pricing is lower 34 but so are OEM costs.
* BIEL's mfg has tiered pricing, ordering a 50k device production run is more expensive per unit than a 200k production run
* Devices ship direct from mfg to OEM Partner, no side trip to BIEL's office
* OEM Partners receive the raw PSWT device, no box, no attachment products, no labor cost to assemble retail product, no warehousing costs
* The product that OEM Partners sell is their Product, BIEL provides no retail customer support
* No Advertising/Marketing expenses, BIEL's largest revenue year was in 2015, $2.339 million, 'Sales Support' to earn that revenue was $1.068 million
So while the raw OEM margins are less than retail when the margins after costs are calculated BIEL comes out ahead with the OEM business model.
RecoveryRx commands a higher price than ActiPatch as it is a Prescription Device. BIEL's profit per unit will also be higher as the mfg costs for RecoveryRx and ActiPatch are the same.
* BIEL's mfg has tiered pricing, ordering a 50k device production run is more expensive per unit than a 200k production run
* Devices ship direct from mfg to OEM Partner, no side trip to BIEL's office
* OEM Partners receive the raw PSWT device, no box, no attachment products, no labor cost to assemble retail product, no warehousing costs
* The product that OEM Partners sell is their Product, BIEL provides no retail customer support
* No Advertising/Marketing expenses, BIEL's largest revenue year was in 2015, $2.339 million, 'Sales Support' to earn that revenue was $1.068 million
So while the raw OEM margins are less than retail when the margins after costs are calculated BIEL comes out ahead with the OEM business model.
RecoveryRx commands a higher price than ActiPatch as it is a Prescription Device. BIEL's profit per unit will also be higher as the mfg costs for RecoveryRx and ActiPatch are the same.
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