Q&A About 400 Unit Purchase by KarbonKleen with dynaCERT
Q - Who is KarbonKleen?
Alexandra - Although a relatively new company KarbonKleen is a number of dedicated employees with extensive experience in engineering, science, technology, FinTech, and most importantly Enterprise Implementation experience. We have our worldwide HQ in Ontario with our US operations being lead out of my local office in Dallas, Texas.
Q - Can you discuss the recently announced 400 unit purchase with dynaCERT?
Alexandra - The purchase from dynaCERT represents an acceleration of our original business plan. We have always felt very confident that once customers were presented the dynaCERT technology properly implementations would follow. The additional unit purchase represents the needed inventory to fulfill our short term commitments to customers based on the interest that has been generated. We expect these acquisitions to continue.
Executive Vice President - Sales
Q - Where are these newly purchased units going?
Alexandra - 150 of these units are going to our ongoing installations in Mexico. Through our partnership with 4ABP (The Alliance) there has been tremendous success in Mexico. Initially there was very little confidence publicly when we announced their plans for as many as 1M units to be placed into the Mexican Economy. However, after initial success of pilot the next delivery was fulfilled as a part of the ongoing implementation strategy which is being executed with members of 4ABP who represent the trade union, private sector, and public sector leaders. We are particularly proud of the relationship we have built with the labor unions in Mexico who represent the interest of the workers and the people and have been working with companies and government entities to implement these units. These units were fully funded and paid for by our Mexican clients and delivery is ongoing. With the ongoing support of the unions and government we expect to continue to see these programs expand including to new markets in Latin America and with commercial buses which were a part of our latest purchase with dynaCERT.
The remaining 250 units are the start of numerous implementations ranging from pilot programs to full implementations that are occurring with our US and Canadian Clients as well as a few transactions we are working with existing dynaCERT resellers and distributors with our Subscription Program Worldwide. More information about these implementations will be upcoming.
Q - When will KarbonKleen be announcing these new clients in the United States?
Alexandra - The US market for any technology but especially those with claims as aggressive as dynaCERT's when it comes to fuel efficiency savings and emissions reduction is naturally skeptical. This is why we put a subscription model in place to allow clients to have align savings and investment. So to our clients the only thing that matters is results. Thus we will be announcing results not just names. When we publish information with our US clients it will not only be to describe sales but to publish statistics around the performance of their purchased units. Names and company logos are not our goal. Our goal is long term sustained growth and that will occur when real companies publish real results of units placed on their assets in production.
Q - Why is KarbonKleen confident these sales will continue?
Alexandra - It has never been a question of available clients. We all can drive down the highway and see the number of trucks supporting our economy and realize there is a marketplace. We also know there is very little market penetration because as I look at the back of those trucks I don't see any dynaCERT units today. I predict the sale of emissions reducing technology and diesel improvement technology following the path APU's (Auxiliary Power Units) where they moved from something you saw once in a while to an everyday necessity. When this same trend occurs the best in class leader in emissions reduction technology will move forward and we are well positioned to take advantage of when that occurs.
Q - Why are clients purchasing with the Subscription Program?
Alexandra - In the discussions I have been involved in the key conversation has changed from "What happens if our investment in dynaCERT units doesn't work?" to "What happens if our investment in dynaCERT units does work?" I have only been involved with the distribution of dynaCERT's technology over the last year so I can't speak with direct knowledge of the past but when we discuss the ability to acquire this technology with a subscription based price this changes the ROI from 16 months to 3 months. Progressive companies immediately started to think about what happens if the claims of fuel savings were real. Don't they owe it to their company to take the time to test this and measure the results not in a lab but on their assets in the field? So for KarbonKleen the subscription program changed the discussion with every client. About 75% to 80% of all of our discussions around the acquisition of dynaCERT technology involve the use of the subscription program verses traditional unit acquisition.