component understanding that MAS management has but they also acquire equipment,
primarily in their local markets, at liquidation prices. Transportation costs make liquidation
purchases unattractive in distant locations unless the exact inventory is made available and
the pricing is extremely low. In cases where there is a high level of sophistication, there is
less incentive to sell hardware in bulk to make room for upgraded equipment.
By design, the MAS business model is relatively low tech and the barrier for entry is
generally low except for industry establishment and inventory capabilities. The benefit to
additional competition is that access to more geographically strategic inventory stocks is
fairly high such that many sales are “co-broked” or purchased and resold in short order to
end users. Because margins are generally very high, this uniquely distinguishes this
business as a low cost of goods sold industry. It is environmentally friendly as many of the
components and devices would otherwise be thrown into land fills. MAS has also uniquely
positioned itself to profit from parts and components that have no useful value for most
domestic applications. But are in high demand elsewhere.
MAS plans to differentiate itself by becoming the dominating enterprise in the industry
through a higher profile presence and a more strategic cyberspace inventory system
allowing for ease of location of required component demands. Because many end users
are overseas, the ability to use the internet to supply their needs is the most efficient use of
commerce. Also, the strategic location of MAS near Brigham Young University provides
easy and economically inexpensive access to multi-lingual people as well as many that are
well educated.
