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rexhampton

08/10/10 10:55 AM

#4336 RE: gator97 #4334

I spoke with Frank regarding coupons, buy one get ones (bogos) and other promotions sometime ago. It is my understanding that these promotions are all baked into the cake prior to the closing of the various deals with retailers. Promotional programs are apparently agreed-to prior to the initial stocking.

Additionally, and as I understood it, XCHO still (somehow) maintains a ~70% profit margin on these promo sales...including bogos.

FYI- The CVS by my house is currently running a $2 off promo.

geodan

08/10/10 11:02 AM

#4337 RE: gator97 #4334

Gator,

On new products BOGO is fairly common to attract interest. It worked at my Walgreens. Agree the 2Qs should answer the questions. The Redchip anaylyst went into great depth on XCHO, and just did it. So at this point if we take his projections for the rest of 2010 think that is the best info we have in terms of what will happen for rest of year. After the 2Q #s out, we can subtract that and put the rest into last 2 Qs.

On a new product that was not even announced a year ago and has been on shelf since March accuracy is not easy at all on projections.

Some succesful products like Airborne took years of marketing just to get on the shelf for comparison.

ubet

08/10/10 11:10 AM

#4340 RE: gator97 #4334

Suggest you call or e mail XCHO, or NPHC to confirm this information. You don't have to believe, but if your interest is poked-------contact the companies. It's not a trade secret
that 2 for is done all the time on the basis described.