Bioelectronics Corp (BIEL)

[JNdouble1]

On the notion of raising the retail price

I think the original idea was satire, but if anyone took it seriously...

Raising the price of the retail product is not a good business decision at this stage of the companies development. Being the most expensive product in the category is typically not a good way to gain market share.

For comparison: (all prices approximate, all for back pain)
Thermacare..........~$10
IcyHot Patch.........$7
Smart Relief TENS...~$25
Alleve TENS.........~$25

Suggested price point for Actipatch was around $42.

In order to rapidly gain market share, the Price is going to be set ~$25-30. BIEL won't have a choice, unless they they want to challenge accepted principles of marketing. As consumer acceptance increases, and brand recognition grows BIEL will gain pricing power.

If we start out of the gate as the most expensive product (by alot as proposed), it will be difficult to gain traction. They competitors will respond if they perceive Actipatch as a threat. They will do what they have to to protect their market share.

Don't forget, the competitors products are clinically proven effective and approved by the FDA.