SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : 3M LS-120 Beyond the zip.
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Stephen Leung who wrote (141)8/22/1996 11:42:00 AM
From: Trakker   of 170
 
Stephen said:
"When a company offers a rebate this is a sure sign of excess inventory or slowing demand."

There is also another more sane theory of why a company offers rebates when they are in a healthy financial situation. It's called strategy. Have you heard of customer loyalty? You know, where you avoid pissing off people who have had faith in your products, buy them only to find the company change its price in a month or two weeks.

Iomega is doing a by the books price drop that they have discussed in their long term strategies. Back in Q1 (Electronic Buyer's News), KE stated that the Zip100 would be available for $99 by the end of this year. To get there you need to take some baby steps. First, like any marketing person worth their salt would do, they announced a rebate that lasts for approximately 3 months. This allows all new buyers to protect themselves against a price action that looks imminent. Then when the rebate expires (9/15/96), Iomega will (IMO) drop the price of the Zip, in time for the aftermarket retail buying frenzy, to $149 (sure makes life tough for the LS-120 product). At the same time (hypothetical) KE has agreements with OEMs to supply drives at the $99 level (Micron already has this arrangement - I don't know about others) so OEM's can have them bundled in by XMAS at an add-on price that is easy to swallow.

Then KE has a nice price strategy that allows him to introduce the next generation Zip at $199 and then drop the Zip 100 to $99 retail.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News