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Non-Tech : Iomega Thread without Iomega

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To: HRP who wrote (6950)1/31/1999 5:57:00 PM
From: Reseller  Read Replies (2) of 10072
 
Hrp, Sorry I don't know IOM's costs, they have however stated that their Zip sale to the OEM's was positive with the additional sale of one extra disk. between $4 and $6 per disk.
I can only estimate the cost differences by starting with my costs and going backwards deducting the profit margin of suppliers. Further you could look at the recent pricing promotion by Buycom.com, deduct a margin range and come up with an approximate cost to the OEM's so FWIW here we go.
Standard wholesale cost $78.00

You can apply the margin that you will but my best guess is that main stream suppliers
will have a 10% margin The retail sale will have a profit difference between
the OEM purchase $40 +the profit of one disk $5 + packaging $6 =$51 and the
wholesale cost $78 -10% =$68 -$51cost =$17 profit to IOM for each ATAPI
sale at retail

Having said that, I would base large OEM prices on what Buycomp was selling
them for which was $54.00 minus a margin, minus the costs for packaging as OEM's
are buying bulk plus their statement that the profit from the sale of one disk puts that
OEM sale in the black . My guess for large OEM costs are $54.00 - $2.00 buycomp
profit -$6.00 packaging - $5.00 give or take for a disk sale = $41.00 ( $38 to $45 range )
I have maintained that one of the reasons that the OEM's like to sell Zip is for the
opportunity to improve their margins. What a deal you install Zip drives as standard
in your high end systems due to their popularly and for all the rest you make
an extra $60.00 bucks.

On the issue of the Ls-120, I would suggest that there is an additional equation that is often overlooked, MKE is making these drives for Imation and is making their profit up front. IMO Imation is taking a big hit when you see these drives on sale for $49.00, consider the additional electronics required to support two formats, the premium being paid to MKE , the shipping both ways and the retailers profit. I applaud their tenacity but feel a sense of urgency that drives their discounting and marketing.

Have decided to go with an external Clik! Drive ( instead of waiting for one built into a camera )with the idea that the external drive will be more versatile. Have ordered a couple of AGFA 1680 cameras and will report to the board, going to Hawaii in the beginning of March and plan to use Clik! extensively. Have a Clik! Drive set up with my system and feel that without a doubt this is the most profound peripheral that has come around in quite a while. The installation was simple and the ease of use was likewise. This little drive has me mesmerized, IMO every digital camera buff will want one.

Regards
Reseller




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