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TechStar1

07/31/08 11:13 AM

#513 RE: happyman22 #509

Let pretend and say the have a great product. We all know a retailer whats to make money. A retailer will look at it in a few ways. 1. How much profit will I make 2. How much will the consumer pay for this in large. 3. Is vendor willing to help with Coop funds (marketing) 4. Will vendor buy back product if product doesn't sell through 5. Whats is the return policy and ratio of returns.... many more

1 and 2 kind of work together. Can vendor get the price down to were seller thinks they can sell it, in mass quantity, and is there still profit. I could go on about this for an hour but the bottom line is maybe there is not enough room in cost matrix to sell to big box retail.

Its also a risk reward product for a retailers with the risks of not selling through being much greater. A large retailer knows to the penny what their ROI is on shelf space. Shelf space costs money. Retailers will always look to profit first like anyone and go with what they feel will make them the most money or drive customers into the store. There is no history with these products so the profit would have to be pretty great to convince a retailer to buy and take a chance.... Tough to do in a tougher market...

Even a great name (Sony, Masterlock, Black and Decker, ext...) would struggle if there was no profit and it was to expensive for the mass market.

A retailer will also look at the finances of the vendor to make sure their stable and secure. That could be scary for BMRX.

Bottom line: To expensive for mass market with no great profit.

Hey... at least they have a print company...LOL A bad press release right before they post the Q was a bad attempt to distract us from what is coming........another terrible Q.


-TS1