Replies to post #30144 on Zevotek, Inc. (ZVTK)

[bigdogg]

"I disagree. Walmart oblivion? how about every single one of those stores. The more retail locations the better IMO. i would want every person at every store to have the chance to purchase these. Ill take every sale so matter where they are from."

Walmarts typically brings suppliers together have them negotiate against each other till the suppliers are breaking even or making minimal profit.

Don't see how selling these at minimum profit helps the share holder or ZVTK.

[patmanley]

It doesn't work that way. Price competition between competing retailers for buyers of the same product leads to lower retail and wholesale prices. Many great, hot selling products have been removed from the stores when they hit the point where the mark-ups are too low. The product is then replaced with a different one that has a higher margin. Often the new product sells far less quantities, and less revenue, but more total profit.

Ever been to GNC for products you can't buy anywhere else? This is the reason. The manufacturer seeks an exclusive deal with GNC, therefore guaranteeing the manufacturer's suggested retail price, which in turn guarantees the highest profit margin for both the manufacturer and the retailer.

ZVTK is a unique product with only a few competitors. It is the perfect product with which to stick with direct marketing in tv ads, or limit itself to one major big box retailer.