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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Fred Fahmy who wrote (43040)	1/10/1998 10:32:00 AM
From: Michael Coley	Read Replies (1) \| Respond to of 58324

RE: Price Elasticity? Fred, >> In doing this they get a distribution of volume vs. price so that they have a very good idea of how much incremental volume they can generate by dropping the price $X. << I think that it's much deeper than this. I remember one conference call when the analysts were pushing Kim for details on price reductions. (I think this was where he said that they could drop the price in half profitably in 18-24 months.) What sticks in my mind, though, was this: He said that consumer pull would have a much bigger impact than lower prices. This is what the competition is missing. They think it's just price. It's not. They think that they can come in with a 1GB drive for $200 or a 200MB drive for $55 and become the next standard. They're wrong. It's a much longer process than that, and Iomega has a three year head start. It involves building consumer pull, OEM penetration, cost reductions, marketing and price reductions. Price reductions alone will only lead to bankruptcy. - Michael Coley - i1.net