> These businesses must overcome the ingrained purchasing habits of hospital systems, medical supply distributors and state governments. I’m guessing this is the real crux of the problem. They’re trying to sell to some of the most glacial organizations on planet. The bigger the organization, the slower it moves. Purchasing cycles can take anywhere from 6 months to YEARS if you’re talking big business or government. T…
I think they are just bad at sales.
We have government and hospital contracts. But, we are really good at sales. My team is really good at sales. Previously, My President and head of sales ran a medical sales division at a company with 300 sales people. We have about 17 sales folks. And we wouldn't be thriving without that team.
They also might not be great at manufacturing.
There stuff is really expensive. They are selling an ASTM Level 3 mask for $37.5 + $8 Shipping! That's $0.90 a mask delivered.
https://shop.demetech.us/collections/surgical-mask-astm-leve...
I can buy a Chinese made ASTM Level 3 masks delivered for $0.18 FROM CHINA.
How can they win charging 5 times more? Because "America"? That argument is many a 3x multiple :)
If I were to guess by looking at all their photos, it looks they have a very manual process for making masks and packing masks. We've had to semi automate the packaging process to survive (which no one else has done). When we fully automated it later this year we will be able to sell our masks much much cheaper than China can.
Our masks sell between $0.20 - $0.59 which is still too high, but all of our margins go directly into investing in the product.