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Strategies & Market Trends : Rande Is . . . HOME

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To: Rande Is who wrote (42148)11/27/2000 9:16:44 AM
From: Rande Is  Read Replies (2) of 57584
 
DB Alex Brown downgrades our Electronics Retailers AGAIN. . .does anyone have a list of all the downgrades in this sector in just the past month? This time they say that BBY and CC offered "too many" discounts to lure customers into their stores early in the holiday shopping season. So they think it is BAD to use loss leaders to get early shoppers? ? ? Then that simply says that DB Alex Brown knows NOTHING about marketing strategies and consumer product merchandising!!

The retailers strategy is sound, IMO. And I'll be looking to add on significant dips. How many times do you visit the electronics store before plunking down the bucks on that new computer? home theatre? big screen? DVD? satellite system? . . . I'd guess the average is somewhere between 2 and 3 visits before closing the deal.

And it is the walking around the store looking for the sale items that gets you to realize that you cannot live without that new bigger ticket system. . . .which you won't buy that day, because it would be an impulse buy. So you return the next week to "comparison shop". Then on your third visit you buy.

Why is that so difficult to understand? Oh yeah! It isn't. The analysts wish to throw Individual Investors off from the scent of a good investment. I'd like to see the book on how much CC and BBY were bought today by DB Alex Brown. >smirk<

Rande Is
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