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Technology Stocks : SYQUEST -- Ignore unavailable to you. Want to Upgrade?


To: Michael Coley who wrote (4974)12/6/1997 1:11:00 AM
From: Jim Lovejoy  Read Replies (2) | Respond to of 7685
 
Just got the Computer City advertisement this morning. Noticed
the Syjet Drive advertised.

Drive $299 and get this 3 Pack Cartridge $299! Were the prices
mis-reported, or is Computer City gouging?

JL

PS As to shortages (is this the reason for the prices) of SyQuest
products, I remember at least one Xmas season the Iomega had a 3
3-month order backlog, so that doesn't seem to be an insurmountable
problem.



To: Michael Coley who wrote (4974)12/6/1997 2:42:00 AM
From: Dale Stempson  Read Replies (1) | Respond to of 7685
 
Re: SparQ pricing

I find it very hard to imagine that Syquest would raise the price of its SparQ drive. Here's a quote from Gary Marks, SyQuest executive vice president of marketing, regarding SparQ pricing:

____________________

"We felt that the price point was vital, so we positioned it at a $199 [expected street price]," Marks said, adding that it was equally important to make the media reasonably priced so users would have an inexpensive growth path. A three-pack of cartridges has an ESP of $99. Each cartridge carries an ESP of $39. "This gives a user 4GB of storage for about the same price as a 4GB hard drive costs, but with the added advantages of removability and expansion," Marks said.

____________________

I agree with Gary, the current SparQ price point is vital. IMO, any increase would be a death sentence.

Regards - Dale



To: Michael Coley who wrote (4974)12/6/1997 5:48:00 PM
From: Wayne Lian  Respond to of 7685
 
Michael, the other explanation is that Syquest might be selling the Sparq and the cartrige at cost. No margin at all. I have not seen any evidence that indicates they have profit margin with such low selling price points. Would like to be convinced to the contrary though.