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


To: Maurice Winn who wrote (6093)7/26/1999 2:24:00 PM
From: Oliver Schonrock  Read Replies (1) | Respond to of 29987
 
Maurice

Nice to know they have some conditions in place, although the info we have is obviously sketchy.

<<But there seems to be fairly good alignment of service provider and Globalstar pricing. >>

What does that mean?

If Globalstar has no direct influence on pricing then The Winn-ing P******G scheme could never be implemented anyway without renegotiating the SP contracts. In hindsight an agreement of you'll make 35% GP on the minutes you sell at the price we (G*) set (the Winn-ing way or otherwise) would have been better. That would give G* control! Exclusivity is their only drawcard??!! That's nothing! When you opt for "dual-distributorship" you just open up another whole can of worms, trust me, been there!

1. Distributors fighting for the same market without addressing the uncovered market.
2. No-one wants to invest in attacking new markets for fear of having the investment nullified by the "other distributor" coming in last minute to take the sale at a slightly lower margin without the up-front investment.

etc etc

So unless they want to go there (dual-distys) then they will just have to accept the unsatisfactory sales-results that the SPs produce. Doesn't matter that they are below budget.

Anyway in the absence of pricing control G* can only lead by providing marketing direction and having some serious talks with SPs about what kind of discouraging info they are spreading in the marketplace. Leading the marketing attack is not easy when you are insulated from the customer by a level of distributors, don't have any real market info and no experience at this style of business.

My concerns have not gone away.

Oliver

PS I know I was kind of vague, but does anyone else remember that news item about the new marketing guy at G*?