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Non-Tech : Any info about Iomega (IOM)?
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To: Joe Rizzo who wrote (2677)6/9/1996 1:37:00 PM
From: Fred Fahmy   of 58324
 
Joe,

I NEVER said that 80% gross margins are the NORM for manufacturing, but they are not uncommon for certain types of products. The supplies business (i.e. CONSUMABLES such as printer ribbons,laser cartridges, typewriter ribbons, inks, etc.) is what I was comparing ZIP disks to. Many types of consumables do have margins in the 60-80% range. I have first hand knowledge of products in the supplies business that are ABOVE 80% gross margin. My figure of $9-10 per disk was an estimation. They may get somewhat less.

When 1.44 inch diskettes were selling for $1-2 a piece I'm sure that their margins were well over 60%.

My point is that for a product like ZIP disks, 80% is not unrealistic especially as volumes increase.

FF
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