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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Podsiadlik who wrote (7247)	7/21/2000 11:09:06 AM
From: DanZ	Respond to of 10293

The data in that table is for Gum Tech's total sales, including gum. The advertising budget was spent only on Zicam. Seems that you should compare the increase in sales only for the product that the advertising was spent on. This is splitting hairs anyway, and isn't important. I don't have any data to verify that Microsoft, any auto company, and Pfeizer made money on new products that they launched. Of course these companies made a profit overall, but I suspect that they lost money on new products. If you are referring to Microsoft Windows, that isn't a new product. It's just a new version. I don't have data to back this up, but I suspect that Pfeizer lost money on Viagra during the launch. My guess is that they had to spend more in advertising during the first few quarters than they had in sales on that product. They made money overall because of profits from other products. I'm sure that you can find a few examples of companies that made money on a new product, but I believe that this would be the vast minority of situations. BTW, my 2c on IFMX. The stock is a good one to flip for short term trades but I don't like the company long term. They are losing the battle of databases to Microsoft and Oracle, and I believe that the best they can hope for is a buy out from someone who wants their market share. Not a real high probability. I believe that it will be hard for them to build their business alone, and that they could be gone in a few years if they aren't acquired.