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To: Jim B who wrote (839)4/25/1998 9:14:00 PM
From: jhild  Read Replies (1) | Respond to of 7491
 
Well, if they lower the price, then the target of 3M to 3.5M, just went out the window. I guess I would have to question the validity of that number. If they don't know what price they will be selling their product, then how can they estimate their revenues.

Revenue = price * units

So, if the price just came down, then the revenue number just got lowered. These people are not in control of their business plan, if this is their thinking.

Or maybe this is just a made up number. Like someone was sitting around saying
"I know, we'll just say that we expect to do 3.5M the first year."

Something doesn't smell right here, and it's not the kitty litter.