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To: Jim Munroe who wrote (8642)	3/31/1999 12:57:00 AM
From: Brian Cunningham	of 10072

"The concern for OEM owners that have no idea what to do with a Zip needs to be addressed." I have serious doubts that an advertising campaign to "educate" OEM Zip owners would spur sales. Surely, most people have no trouble determining that slot next to their floppy drive is not a toaster and probably takes storage media. Those who don't buy media more likely fall into the beginner low-end user category. They should become buyers as they become more computer literate and accumulate valuable data. Patience is the key. You cannot reasonably expect OEM users to have the same high initial tie ratios as aftermarket Zip drives. I also think it would be suicidal for IOM to cut disk prices significantly. They virtually own the market and should be able to maintain high profit margins on their disks. If a serious competitor comes along, they can respond with price decreases. Until then keep the price near current levels. Zip disks are not true razor blades, they are reusable. If IOM sells large quantities at a low price they risk satiating future demand.

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