Message-Id:
<[EMAIL PROTECTED]>
At 07:24 PM 7/21/00 -0500, you wrote:
>From: "Oliver King-Smith" <[EMAIL PROTECTED]>
>Subject: RE: New Palm models
>
>
>> I guess here is my problem. I plan promotions and marketing often 3-4
>> months ahead. If I can suddenly no longer buy the model I was intending
>to
>> use for the promotion because it has disappeared, and I have to eat $100
>> more per unit on the IIIxe, it is a little hard to go home and relax on
>the
>> weekend.
>
>Just my 1or2cents worth: Planning a promotion based on the hope that you
>will be able to purchase *any* product 3 to 4 months in the future is a very
>risky strategy. Anything could happen to make that product unavailable when
>you need it. It would be a much better idea to acquire the product first.
>You can't really blame Palm if they decide to stop making some model, and
>you can't really expect them to announce discontinued models before current
>inventory is depleted.
I agree with you that there is a risk, but there are other risks
(especially for smaller companies) with buying the units ahead of time.
First Palm can cut the price before the promotion starts but after we have
bough the units (went through that one with the Palm Pro). The promotion
can stink, and you have a whole bunch of Palms to deal with. You tying up
a lot of capital for a long time which limits the amount of promotions you
can do. Hence you need to balance these risks. Right now I don't have a
good intuitive feel as to how to manage the risks.
Obviously an option market in PalmPilots would be ideal, but to the best of
my knowledge no such thing exists yet.
>
>
>
>
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