currently exist. These can be broken down into four core areas: Strategic component sales;
Point of purchase location expansion; wholesale purchases and sales of inventory in volume;
cyberspace marketing and inventory access.
The most attractive business outlet for MAS is akin to that of Automobile Junkyards. Acquire
inventory at below scrap value—particularly in bulk, and resell components for considerably
more than an individual solution is worth. This is where the longevity in the market place, an
established customer base providing ongoing demand and know how in the market place
meet. Relatively simple to execute for the competent MAS staff but substantially limited by
inventory constraints. From its current posture, MAS management feels that this sector of
business can generate 100% per year in profits for every dollar in current inventory each year.
With the present infra-structure, MAS could easily use $3-5 million and generate $3-5 million
In profits each year from this strategy alone.
Core Area #2. The current point of purchase location in Orem, UT. can be easily duplicated
in other strategic locations for minimal cost. The ability for the Company to provide limited
inventory yet have quick access to expanded inventory is key. This model can easily support
as many as 50 additional locations in the greater Salt Lake City area—all within easy driving
and same day delivery access. Each facility is easily capable of seven figure sales each year
with a high profit margin of 30-45%.
Core Area #3. The wholesale business is much like the organized commodity brokerage
business in the US but with much higher margins. Dealers trade amongst themselves as
well as work together in selling to end users. Many end users look to auction or sell to
dealers in order to rid themselves of unused or expense incurring inventory that is no longer
useful. Because this is primarily a dealer to dealer to application or end user business, high
margins allow for all involved to enjoy significant profits. It is rare, if ever, that money can be
lost on general inventory purchases. Normally, over a short period of time—less than six
months, owned inventory is turned for significant margins and the little left over can be used
for repair parts or to be recycled responsibly at a profit.
Core Area #4. The cyberspace and automated inventory tracking system are currently being
evaluated by MAS. The existing system allows for bar code tracking of inventory, but is not
automatically integrated witha web inventory update program nor can it inventory a hardware
solution by the parts it contains. The Company hopes to acquire this new enhanced inventory
system in the near future. Another benefit is to allow MAS customers to use the web to easily
find product and order without having to speak to a sales representative. Part of the current
road block is the requirement to search automated inventory via internal networked computer
stations as opposed to automated accounting and availability software.
