SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?


To: Gottfried who wrote (8988)4/12/1999 8:17:00 PM
From: Thomas L Nielsen  Respond to of 10072
 
'The overall ZIP margin matters more."

Better yet, its the overall bottom line. Taking a loss on some items to promote other future sales is a good business practice if it works. Getting the drives into the boxes is probably the least expensive and most rewarding form of advertising available to IOM.

Tom



To: Gottfried who wrote (8988)4/12/1999 8:25:00 PM
From: Ken Pomaranski  Read Replies (3) | Respond to of 10072
 
<< Since Iomega now breaks out margins for each product, it has become less important to me whether some ZIPs are sold below cost. >>

False. It should matter a great deal. Think of the OEM and retail ZIPs as Product 'A' and product 'B'. Product 'A' has huge margins and product 'B' loses money.

In any company, If the trend shows that product 'A' is dropping in product mix with respect to product 'B', then management and shareholders should be concerned. Iomega (and the bulls) try to fool you by trying to make unit sales matter. They do NOT. If the units are mainly product 'B', it is immaterial AND deceiving. I laugh when you on the thread get excited over OEM percentages & unit sales. High OEM percentages (like 40% dell) mean more money lost, or not gained by having Iomega not sell the drives in the aftermarket.

The bulls on this thread should blame these RAH RAH cheerleaders for misleading statements NOT the bears. Cheerleading on no data, and without any regard for reality is far, far worse than any allegations brought against the bears of this thread. I'd hazard a guess that only 1% of the bulls do their homework, while 95% of the bears do.

(Sorry, but I got tired of the tirade of posts against the bears today with no supporting data..)

kp



To: Gottfried who wrote (8988)4/13/1999 12:29:00 AM
From: Reseller  Read Replies (2) | Respond to of 10072
 
Dell ( the Premier computer maker ) announces the first to include Zip 250, that the Zip inclusion rate is over 40% of their most popular model ( the Dimension desktop series ) and somehow this is bad business, what a joke.

I guess they're willing to concede that IOM isn't losing money on the Zip 250 but not making any either. I wonder if they would also agree that IOM isn't losing money on the Zip 250 disks or that most of those buying a Dell computer are seasoned users and are likely to opt for a Zip 250.

How is it that the worlds fastest growing computer maker is selling so many Zips drives, that don't work and are unreliable, have lost popularity, have old technology and is already dead, to be replaced by all of those other whatchacallems ?

The bears are going to fry on this one again with over 22 mil shares to cover and time running out.

Regards
Reseller