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Non-Tech : Iomega Thread without Iomega

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To: Pacing The Cage who wrote (9010)	4/13/1999 1:57:00 PM
From: Ken Pomaranski	Read Replies (2) of 10072

<< Don't you think that the joystick manufacturer made nearly the same profit on both joysticks - regardless of who was reselling them or for how much? >> Not necessarily. Lets go back to the ZIP example. Retail Zips go for about $129 -> $149. Dell is selling ZIP included $79. Who's pocketing the difference in this case? Are you telling me the retailer is making more per ZIP than Dell? No way. we already know that retailers only use a 20% markup. The only explaination that fits (and it happens to fit with reality), is that Iomega makes more money off retail ZIPs than OEM zips. They probably charge retailers about $80 -> $100 per drive, and Dell about $50 or so. (The first number will fall as ZIP $99 retail hits.. Further sinking margins..) In 1997, I'd be willing to bet that Iomega charged $150 per drive. We know that all the above is true, because as ZIP unit sales have increased, drive revenues have decreased SIGNIFICANTLY. Look at the numbers on Mike Cooley's page. << . But my point is that the joystick manufacturer "didn't get where they are today by giving stuff away" either. >> Anybody know of any 1.5 billion dollar joystick manufacturers? ;) kp

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