To: Tom Carroll who wrote (7560 ) 2/19/1999 9:34:00 PM From: HardMoney Read Replies (1) | Respond to of 10072
Hi ALL: I just got back from a very pleasant trip to Italy. I took the wife there for Valentine's .........anyway I'm sad to report that, although I didn't do actual channel checks at major computer stores, my couple of stops at some "internet cafes".....they don't even serve coffee anymore....its just a room with a bunch of PCs basically, turned up no sign of any Zip/Jaz/Ditto/clik......nada......niente.... We should be concerned with. I also spoke to a teenage(18) cousin of mine, who is into computers and he told me the reason why he and people like him, that is to say, italian techies(BTW the counrty as a whole where we were in 93 in terms of the PC ownership) don't by Zips isn't because they are not the preferred choice, they are. But he had to settle for a cd-r.....why?.... well where he lives....Florence........a Zip 100 PP costs roughly the equivalent of $250 or L 375,000 and a single disk costs him $35 dollars/L 60,000. He'd love to have one but he can't afford it. I'f you have a PP Zip Drive your cool......if you have an internal.....well I won't say....ladies read this thread. This leads me to something......there are great margins for IOM in Europe. The product is already cheaply made and mature in its manufacting cyle, yet the price elasticity of the product is extremely high due to it being still very early in the demand cycle. IOM could drop the price of the PP External to L 299,000 or the equivalent of of $175, still very good and have huge increases in sales....everyone wants one but really only some large Businesses use them an scientific and educational groups use them......the consumer does not. This is a huge market for IOM. Ten pack sales would explode if the price per disk were L 19,900 or $11.75, still good. The net is still in it's infancy the way we were in 1993-4, it going to be begin there...........I beleive Europe's pop. is three times ours.......anyway the amount of money to be made there is huge. Therefore, I am glad to have heard of IOM's plan to have a Zip drive manufacturing facility open there by the end of 1999 and of Mr. Glore stating during the CC that he would pay special attention to increasing demand in Europe. This will further reduce IOM's cost per drive and add to margins during the price cuts. This leads me to believe the price cuts will come this Q4.....The fiscal year 2000 will IMHO be tremendous This has also made me realize that IOM is in the very beginning of its "globalization" it has conquered the US...inertia will make it the floppy replacement eventually.....and now it will conquere the world........While accounting for less than 1/3 of IOM total sales, non-US sales could increase over time....say 5 years to 2/3 of total sales while US sales will still be rising. Everything "IOMG and Kim Edwards" were about, was what the company could achieve.........IOM and Glore will be what they actually do achieve. Food for thought. Frank