SYQUEST Message Board - Msg: 3253691

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Technology Stocks : SYQUEST

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To: Rocky Reid who wrote (5274)	1/25/1998 9:35:00 AM
From: Mike McCauley	of 7685

>>even if Iomega's entire campaign focuses on branding the ZIP. Once people are in the stores, salesmen, side-by-side comparable products, signage and shelf space all enter the picture. If newbie users see 199 for Zip Plus and SparQ, they may ask the salesman what the difference is between them. After the salesman explains that SparQ has 10 times the storage space, I think that some people who go in for a Zip will walk out with a SparQ. Not every time..not most of the time..but some of the time. And this is all it will take to vastly improve Syquest sales.<< This makes a lot of sense except for two things. 1) I don't think syqt has a problem with sales. Where I live, (Baltimore area) as soon as a store gets some in stock, they are sold. I have been trying to buy a SparQ and the 3 pack of disks for 2 months now. This tells me their problem is with production. 2) If they do increase production so that people can see them on the shelf (and ask the salesman about the difference between IOM and SYQT), there is no guarantee they are making a profit. No one seems to know what their profit margin is. They may be selling these products at a loss. Therefore bigger sales could simply mean a bigger loss.

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