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Berkeley Varitronics CEO Scott Schober discusses how his security devices are helping law enforcement officials.
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Many small business is staying up in a down market is especially tough when competing for business with overseas vendors.
Tonight small business spotlight knows first hand what that's like.
He is the president CEO Berkeley Barrick -- X systems makers of high end security devices and wireless test.
Welcome to Cardtronics president and CEO Scott Chilavert Scott you brought some of this detection gear with you it's impressive stuff -- just -- -- -- -- -- This here's our wolfhound pro cellphone detector.
It's used in facilities where you need to secure them where cell -- are not allowed me to enforce a policy he could actually direction find.
Detect and locate where the actual cell phone is -- and -- prisons where this contraband cell phones.
Which is a huge problem with asking follow up how bad is how contraband cell -- are prisons.
Most in demand for this product yes that's actually the hottest area of this so -- -- hundreds of them.
And in the coming in Bible means -- of lawyers they're being smuggled in.
-- visitors.
And -- -- for all kinds of corruption.
Gang activity witnessed in the nation teachers and classes using -- it.
Cheating -- himself on that that's a definite exactly -- -- lots actually universities where the Procter and examine somebody wants to.
Actually look up an answer and test.
They can use this and say hey somebody's got cellphone and we were just chatting in the commercial break happened have my Blackberry and this thing went right off I mean -- -- off the radar actually so I turned it off for the microphones will still read it.
If I were just kind of stick inside look you have your phone on -- transfer -- every once in awhile to the base station we can pick that up its global economist registration.
So we can actually protect their -- in fact.
Detect and locate where the cellphone -- so mentioned facility were some things -- it and -- that we can simply find with this so what is it about the -- that this teasing to.
What's really the signal strength -- transmitting from the mobile phone.
Who the base station the cell tower that's what our algorithm does it scans and looks at all North American cellphones for the three G third generation network.
That's -- this tools you are right so what -- your profit margins like how much does this cost what does it cost you to manufacture and what can sell for sure good questions that this unit sells for under 2500 dollars it's very profitable unit and it's really geared towards telling the qualities of hundreds.
500 times openly that we want to get it.
Wide spread deployments are -- -- one typical state prison if you -- would.
I'll lot that marks yet they would by several units or depending on how how large it has been made by twenty or thirty units to really enforce no fuel cell phone calls and your input costs because materials costs we've been watching commodities source has that hurt you.
Well yes the prices have been going up so to keep it close and keep it profitable we have to build enough volume and -- enough units through and to make it.
Make it -- where is the most demand regionally.
Well this is certain states are key problems -- in Texas and California actually in the East Coast.
New Jersey New York a lot of problems as well as down in southern states where phones usually -- and prepaid phones are smuggled in.
Very easily and -- -- Would you say you have more problems with competitors domestically or overseas because I -- China.
Seems to have an advantage over the US -- so many different ways for you in your business as well -- could be challenged fortunately for us this is a niche product which.
Which hasn't been ripped off by -- Chinese market as of yet.
A lot of problems when things go to China to outsource that there obviously.
Intellectual property there's risks there -- they could easily copy things and we're very concerned about that.
One thing that's helping us to some degree.
Is the cost -- the high cost of energy shipping goods from China here.
Has changed the balance a little bit that's just so this is really family business yes and yes where do you go from here -- hope to expand.
What are you doing how you navigating through this tough economy.
Body in your -- its family business which makes a little bit more exciting kind of unique in that we've been in business thirty years companies kind of on my father who's semi retired -- CTO.
And were privately held company and and we focus on niche products or is looking for what's the next.
Evolving technology that's that is and that -- -- -- -- introduced officially last week.
Unique tool a different take your phone survive such terrible cellphone coverage -- you look at the number bars can figure -- out.
This -- here actually allows you if you look at and say hey who's the best carried best cellphone providers AT&T is its printers -- Verizon.
It'll tell you that simple signal strength management.
Is that in pocket size any got to get you.
You've got to streamline that make it smaller so that we can just kind of pull out of our pocket books it's getting smaller and smaller this being a first unit here that's exactly what happens getting in -- it's more it's more in the price and -- is it is something thousand dollars it's getting more attractive to.
Carriers are even Solarz of any type of from this well thank you so much -- description conversation -- you -- thank you so much.
