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

To: Rocky Reid who wrote (50096)3/15/1998 6:32:00 PM
From: jwk  Respond to of 58324
 
....to meet the price point goals they stated (and have restated many times since) when the Zip was first introduced. Prices are coming down, but margins have been going up.

>> I have but one question:

If Zip sales are going so well, how come they keep lowering the price? <<



To: Rocky Reid who wrote (50096)3/15/1998 6:48:00 PM
From: Richard James  Read Replies (1) | Respond to of 58324
 
<<If Zip sales are going so well, how come they keep lowering the price?>>

At least 3 reasons.

1. The profit is in the cartridges, more drives mean more carts.

2. To establishes ZIP as a standard before other products hit the market.

3. IOM may incrementally lower prices until net total profits decrease. $1 of profit on 1000 is 10 times $10 on 100.

Richard James


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