SYQUEST Message Board - Msg: 2875289

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Technology Stocks : SYQUEST

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To: Ralph Bergmann who wrote (4915)	12/4/1997 10:24:00 AM
From: Michael Coley	Read Replies (1) of 7685

RE: How will SyQuest make money on SparQ? Raising the price on a product is virtually unheard of in this industry. About the _ONLY_ way a company could do that would be through the expiration of a rebate program. For instance, start a product at $249 with a $50 rebate. When the rebate expires, the "price" has gone up. SyQuest didn't do that with SparQ. I doubt that they would ever be able to get more than $199 for it, now that they've introduced it at that price. Potential customers would feel like they were being ripped off at a higher price. I think that they hope to make money on it through cost efficiencies at higher volumes. I have no doubt that SparQ can be produced at a profit, but I do have serious doubts that SyQuest could ever ramp up to the production and sales levels that would make it profitable. And they've already shot themselves in the foot selling the razor blades so cheap. Even if they do return to a slight profit (at Iomega-level volumes or higher), they'll never get Iomega's level of profitability. These are just my opinions. - Michael Coley - i1.net

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