Bioelectronics Corp (BIEL)

[pennymuscle]

Soft vs Hard Rollout

First off, before anyone bashes what I am about to say. I have been with BIEL for a decade and sitting on more than a few shares. I want them to reach the stars also.

There are many reasons that BIEL is in a soft rollout.

1) As stated elsewhere on here, CVS is putting it out as they complete their own store retro fits. This allows Biel and CVS both to get an honest feel for the unpromoted product sales numbers. Retail shelf space is very valuable. I would not be surprised to find that half the BIEL product on any CVS shelf has been given to CVS as part of the deal to put it on the shelf (this is a very common retail practice). 1) leads to 2) The next step to evaluate with a soft rollout. BIEL can better judge their manufacturing ability to meet demand. As sales increase, manufacturing can be adjusted to meet that demand without having excessive money tied up in warehouse inventory. It normally takes 3-6 months lead time to significantly increase manufacturing. (More than one hard rollout has resulted in a company doing irreparable harm to themselves when they could not meet the demand. Such a situation leads to loss of shelf space and damages future relationships). 2) leads to 3) A soft rollout does not alienate other retail outlets from wanting to get in the game. It provides hard core data to negotiate new contracts and relationships. It also sends a wake up call to other retailers and makes them think "Do I want to miss the boat".

These are just a few of the many factors to be considered when deciding to go soft or hard.

I am already retired, but I've had my eye on a small island in the Key West area of Florida. GLTA