Creative Labs (CREAF) Message Board

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Technology Stocks : Creative Labs (CREAF)

CREAF 0.370

-21.3%

Oct 31 1:10 PM EST

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To: Brian Lempel who wrote (12242)	9/10/1998 4:30:00 PM
From: burn2learn	Read Replies (3) of 13925

Brian, I dont remember them saying inventories will increase. I'll take your word for it, besides it just makes sense(with all the new product releases) Sb live is for sale @ buycomp for ~$130. Very low in my opinion. I started wondering how the price is set. Was the price reduced,or.. 1. At the start of a product release( new very high margin product), you split more of the products profits with the retailer. To help promote demand and support by the retail front you offer it at a low price, as you reduce the suggested retail price over time it actually depletes the retailers profit not yours. This would help establish demand initially, and stable margins. 2. Creative labs cut the price for whatever reason. at 130 buycomp would have to make at least $10 I would think. $20 for the middle man, 100 for creative. These are wild numbers please someone help if possible. If Creative is suggesting a gross margin say in the high 50's, what price is that based on. Mike

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