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Technology Stocks : Identix (IDNX)

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To: David who wrote (15844)11/22/1999 10:28:00 PM
From: David  Read Replies (2) of 26039
 
And another thing . . .

The overpriced BioSafe/BioShield product is going to be sold through channels. What is the incentive for the resellers to move the software? If there is no particular market for the $69 frippery, it just doesn't get sold by our channel partners. After all, the lion's share of software revenues doesn't accrue to them, does it? (Or is that one reason the price is so high -- every single reseller in the chain, as many as five of them, takes a middleman's cut!)

There is another possibility: That the $69 price is strictly for the public's consumption, but that corporate bulk buyers via CPQ will get a reasonable price. In that case, IDX has lost a major opportunity in its PR to cite the true price, and instead paints itself as overly optimistic and/or gouging direct sales consumers, as well as failing to differentiate itself from its competitors. Imagine a COMDEX PR that could have said something like "We will be offering a package of features for $79 that is unavailable at any price elsewhere (or "available at no less than $179 elsewhere", whichever is accurate).

Either way, this pricing can't be justified.
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