Allen-- bo is just trying the latest bear version of second guessing IOM's business/ marketing plan. I doubt the future will show him to be any more correct than events have disproved this previous attempt by rr.
so wrong, so often, for so long.....
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To: Rookie (19097 ) Monday, Mar 31 1997 2:49PM EST
From: Rocky Reid Reply # of 41139
>>Do we have any numbers as to the percentage of drives actually
having resulted in rebates? There is obviously some cost involved
in processing rebates, creating rebate forms, mailing checks,
cerifying validity of claims, etc. We can't determine how much
less revenue is being generated.<<
I believe the last redemption numbers were anywhere from 50% to
75%. KE has purposely kept this number hidden because I believe
it is actually closer to 75%. The cost involved with processing
the rebates can't be too high as evidenced by the debacle that
was the rebate program. Iomega has a new, unwanted hate group
dedicated to them soley based on rebate issues. There are several
amusing web sites and newsgroups dedicated to trashing the
company based soley on this PR nightmare.
>>However, new lower price of $149 is probably the highest anyone
expected. Anything higher would have resulted in a new increase
to .<<
Which goes back to my assertion that Iomega management failed to
realize potential revenues by cutting prices too quickly.
>>If the first quarter numbers were bad, then I think the price
would have been lowered. IOM can only produce 8 million ZIPs per
year. Why lower the price if demand already matches (or nearly
matches) the supply, and you can't increase the supply?<<
My point exactly. If you can sell as many as you can make, it
would be senseless to lower the price. In fact, a price hike
wouldn't be out of the question.
>>Once NEC and others start outputting drives, then lower the
price to maximize the number of units in circulation and
therefore disk sales.<<
Another thing is the failure of IOM to produce numbers of Zip
discs sold. If they were up to expectations, you can bet KE would
be floating those figures out to keep the investors happy.
However, my hunch is that the Zip disc sales are disappointing,
and therefore the silence regarding them. In fact, I think it is
possible that these Zip disc figures will not be produced even at
this Q's report due to "insufficient time span for evaluation."
Yeah, right. |
