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

To: Senthil Sankarappan who wrote (49116)	3/1/1998 9:56:00 PM
From: Michael Coley	Read Replies (2) \| Respond to of 58324

RE: Retail Presence. >> If they can only count 4 weeks of inventory in revenue, why is IOM keen on keeping upto 6 weeks inventory? isn't it tying up cash? << I can answer this one for you. Iomega wants the inventory in the channel for retail presence. They want people to walk into stores and see their product everywhere. People buy what they can easily find. If they can't find it, they might buy something else. - Michael Coley - wwol.com

To: Senthil Sankarappan who wrote (49116)	3/1/1998 11:00:00 PM
From: Reseller	Read Replies (2) \| Respond to of 58324

re: Could you educate me in this retail shipment area. 1) Say, you order a ton of product from IOM. Do you have the right to send them back if you think you are not able to sell as much as you thought? or it is your problem to clear the inventory by putting big sale. ______________________________________________________ I can return product on a "stock balance bases" for up to 140 days. Some of the big boys will buy on a no return bases but are given incentive in the form of discounts that equates to protection for price reductions should they be needed, or extra profit for buying in volume. ______________________________________________________ 2) What will you do in terms of returns? If the product is defective then I guess u will send to IOM and ask them to fix. But if the products are returned for other reasons like "changed mind" or not satisfied blah. blah..., could you still return them to IOM? ______________________________________________________ There is no other requirement for the return of merchandise, at times I've mistakenly ordered and didn't want to keep it around so I stock balanced. DOA's under 30 days are sent to the distributor, over 30 days are sent to the manufacturer. Let me say that the protections afforded the retailers assures them that they can invest their capital in inventory without being burned. I have ordered and sold product that wouldn't have happened if I weren't protected. ______________________________________________________ 3) IOM sez they count 4 weeks of retail inventory in their revenue. Does this mean that they can just pump in Buz, jaz2 and laptop zip in March and claim them in Q1 no matter if retailers sell or not? If this is the true, then IOM's manufacturing power can make this Qtr a record Qtr, right? ______________________________________________________ Also with last quarter : ( Keep in mind that it is their choice of how to factor this figure. They could count revenue for all that has shipped. It is this conservative accounting approach that I had hailed as proof of a company that was more than hype and cooked books that the bears claimed. I didn't hail that approach for the last quarter so much. ______________________________________________________ 4) If they can only count 4 weeks of inventory in revenue, why is IOM keen on keeping upto 6 weeks inventory? isn't it tying up cash? ______________________________________________________ It's very hard to peg demand especially if you have such a good product. All of the retailers must have excess inventory on hand ( to a point ) if you don't have it you won't sell it. I think it takes that much extra to insure that everyone will have inventory. Regards Reseller