Silicon Investor (SI) -- The First Internet Community

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.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Valueman who wrote (5509)	7/2/1999 10:05:00 AM
From: Sawtooth	Respond to of 29987

<<As for marketing, G* has said they will do a comprehensive global marketing campaign coupled with local service provider campaigns.>> Thanks; glad to hear it, Vman; although I would have been stunned, otherwise. I hope they have analyzed what Irid did with a fine tooth nit-picker to learn from Irid's mistakes. I'll look forward to G*'s campaign; nothing like a good marketing program to get momentum built up. Hope you have a great Fourth weekend. (I'm ready to start now!) ; )

To: Valueman who wrote (5509)	7/2/1999 11:05:00 AM
From: John Stichnoth	Read Replies (1) \| Respond to of 29987

Vman, I absolutely agree with your points over the last couple of days. It's a huge problem. A couple of thoughts on the implications: 1. This is a chance to close out IRID as a competitor. Instead, G* is offering customers--and a gasp of life--to IRID. A potential customer calls G* and irid, compares prices, is able to get irid service now. What does he do? Of course he signs up with irid! That's not just a deferred customer who will have to be "resold", it's a lost customer. Not only that, but it's a customer to G's only competitor. A better course would be to quote "expected" prices that blow irid out of the water. Those customers would be much more likely to defer their purchase, denying revenue--and that last gasp of life--to irid. Is there anything to prevent G to set their actual price in 90 days above what they are indicating today? 2. The handset issue is self-reinforcing. The mfgrs will be producing at a base rate in September and afterwards. At base levels it will take over a year to get enough handsets made to reach breakeven. High prices initially threatens to leave initial production unsold. Follow the pokemon model! Initially, packs sold for $2. They were cheap and a "throwaway" purchase. Now, the price in our area is $6.99! And you can't find any! Price low. Who cares about a few million dollar loss on the initial handsets, when you are already into billions? G* is already on the hook for that original volume of phones. Encourage vast demand far outstripping supply. Allow the huge demand to cause prices to rise above the MSRP. This will engender positive news stories. The huge demand will encourage Q and ericy to ramp up production faster. This will lower unit costs. A wonderful reinforcing cycle is created!