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Biotech / Medical : Paracelsian Inc (PRLN)

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To: richard davis who wrote (538)9/26/1996 6:37:00 AM
From: John H. Farro   of 4342
 
Richard,

I have no idea whether the newsletter is making money. I would be surprised if it is making money at this point because most newsletters and magazines lose money during their first year or two of operations while they get themselves established. I believe the intent though is to make money through the newsletter. They are not advertizing any products yet in the newsletter. The letter stands on its own without mentioning anything about Paracelsian. It doesn't push any products other than the importance of eating a vegetarian diet and adopting a healthy lifestyle. They are operating the venture as if they intend to make money. They have advertized different prices for subscriptions to it in diferrent mediums. They did this as a marketing survey to see how subscription response rate varied at different prices to arrive at an optimal price. At one point they were trying to sell the newsletter for up to $89 for a year's subscription. They must have discovered that price was too high to attract subscribers (I certainly thought that price was too high.) They are now selling subscriptions for $49 a year. I think this is a fair price for what you get.

Robin Messing
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