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Non-Tech : Any info about Iomega (IOM)?

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To: Rodney B. Hill who wrote (6835)9/2/1996 5:03:00 PM
From: Dave Warren   of 58324
 
Rebate

I would guess that if the oems are selling zips for $99.00 (at least
that's whats been quoted on this board )that the oems and Iomega are making money from these sales.

Based on the price the oems are sporting we can come close to Iomega's
cost of the product. You can add or subtract a percent or two here or
there but I feel these are pretty close.

The wholesale price to the oems should be about 10% less = $90.00

I'm guessing Iomega's cost around another 10% less = $81.00

Now the Rebate !

I know what wholesale ( for retail ) is at the moment without any
special promotions $179.00. We are starting to see special promos
comming in at the $165.00 range.

Wholesalers work on around a 10 % margin putting their cost at
$161.00 to $149.00 .

Iomega sale to wholesalers $149.00
Rebate -$50.00

Iomega after rebate sale $99.00

With my approximate cost at $81.00 thats a 18% gross margin.

Could it be that Iomega is giving a $50.00 rebate and still making
an 18% margin not to mention the add on sales from the disks. ??

Dave

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