Radica Games (RADA) Message Board

STOCKTALK

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 : Radica Games (RADA)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: j rector who wrote (1936)	1/15/1998 11:00:00 PM
From: David	Read Replies (1) of 7111

Hi Jamie, You are correct that in theory a customer can only return faulty product; however, if a large customer finds after Christmas that they have loads of product left on the shelves they will go to the supplier and say I want mark-down money or I want to return the product. The supplier can tell the customer where to stick the request, but the problem is they will then lose that customer. To avoid this we manage inventory at customers - i.e. we watch very carefully sell-through and quantities they are holding so that we achieve (or try to) the ideal position of all product sold through by Christmas - you can probably tell how successful we were in this regard by the comments on the thread ! Returns provisons are always maintained by the company in case something went wrong - at the year end these were $2.3 million, an amount that is deducted from sales in the P&L. Hope this helps - also hope it emphasises the point that when you see product all over the place with a few days to Christmas or even worse after Christmas, it is NOT a good sign for a company in our business. Best regards, David

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next