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Non-Tech : The New Iomega '2000' Discussion Group
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To: Cogito who wrote (1522)7/8/1999 9:47:00 AM
From: Ken Pomaranski  Read Replies (1) of 5023
 
Allen / Reseller:

Yes, you are correct in your thesis that long term price / Mbyte CAN be a enough of a product differentiator to overcome the interface cost to the manufacturer. My point is that this is not free. The manufacturer will need to increase the cost of the product to compensate, thus losing the consumers that shop purely on price. The value proposition of 'cheap additional storage' may be a difficult sell for those who don't need it. Of two cameras with essentially the same specs, one $100 cheaper, which do you think the consumer is most likely to buy? Iomega could try to push the CLIK! through an advertizing campaign, but this will cost $$$ and may hurt the ZIP.

ZIP is 'successful' (again, depends on one's definition), because many computers are now built to order. The consumer can choose what they need in a PC at the time of order, and the manufacturer can immediately charge for it. Being able to charge for extras work, like in the automobile market. For a commodity item like Cameras, which people buy off the shelves, this method doesn't work. The manufacturer must make a leap of faith that customers will buy CLIK!s value proposition.

<< You didn't have to say that my original point was a spin to suck in the uniformed or a rationalization >>

You're right. That was my emotional response to those others (not you as much) that discount Flash using the COST / MBYTE mantra. I was getting tired of it. I had to show the 'other side'. The fact is, flash is doing great.

kp
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