Park City Group, Inc. (NASDAQ:PCYG) Q4 2023 Earnings Call Transcript

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So, I would argue they’re sort of, let’s call them conservative, knowing that things in retail take a while. They are all large systems, meaning one of them owns several hundred stores. Actually, they’re all between two and four hundred stores that they own. One of them is a wholesaler with two thousand stores for which it’s a wholesaler. Another one has, I think, eight hundred stores that it services. When you’re at that scale, nothing goes fast, and that’s how they think. So I think their decision to get started was really based on, one, how long might it take? And since nobody’s done it before, no one has done it before, end to end, across thousands of items, thousands of items, and many, many stores and distribution centers and all of that complexity.

Why not allow yourself plenty of time? So, I think that’s why they made the decision to get started, and it’s also why we’re completely convinced that the FDA should back off and give people another year. We believe, and remember, we’re in the market all the time talking to people. There are some people who say, well, I don’t need to think about that now. I need another year and then I can start thinking about it. And what we say to them is, you won’t get it done. It’s not a one-year project. It’s longer than that, and it’s difficult to do. Well, I suppose to some people that sounds like sales talk. It isn’t. It’s true. So, that’s why we suspect that 24 is very busy for us, calendar 24, and that calendar 25 is going to be a crush.

By the time the word is out that traceability is doable but difficult, that it involves changing lots of things in your business, our phone will ring. And the problem that we worry about is having to say to a customer God, we talked to you two years ago and you said you thought you could get it done in a year and now you’re calling us and you want us to get it done in six months? Can’t happen. So 25 will be a crush and hopefully the FDA backs off and gives the world at least another year. Two years would be better. One more year is desirable. So I hope that, I know that was long-winded, but hopefully that gave you some color around your question. People who are conservative want to start now because it is a bigger problem than they thought.

And then people will come in later and we’re not sure they’ll all get done.

Operator: We have reached the end of the question-and-answer session. And I’ll now turn the call back over to management for closing remarks.

Jeff Stanlis: Thank you all. Appreciate you taking time this afternoon. You know what to do if you have questions, contact John or Randy and we’ll try and help. Thanks a lot.

Randy Fields: Thanks everyone. Have a great day.

Operator: And this concludes today’s conference and you may disconnect your line at this time. Thank you for your participation.

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