Bowling Alleys and Tornadoes: G&K Hunting Grounds Message Board

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Strategies & Market Trends : Bowling Alleys and Tornadoes: G&K Hunting Grounds

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To: Percival 917 who wrote (44)	7/19/1999 12:24:00 AM
From: Mike Buckley	of 153

Joel, The Ophthalmologists keep paying the royalty but everyone I know hates it and would switch if another laser came along as good as VISIX. As I understand it, there is a significant though not prohibitive cost of switching. The equipment costs about $250,000 if I remember properly. If another product does come along that is just as good, the chances are that the provider would require a high royalty also, having seen the Visiix's successful business model. On the other hand, if they introduce the as good or better product at lower rates, Visix would be able to reduce their royalties. Certainly one of the characterisitcs of a potential gorilla is the ability to raise and lower prices at will. We know that Visix can raise prices. It will be interesting to see if they can also lower prices successfully. --Mike Buckley

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