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pire

11/28/10 10:38 AM

#31043 RE: naturalborninvestor #31039


Discounting and going out of business was exactly what was posted. That is why I stated as others have, that it is ok at this time of year. Go back and reread before you post something that is not true.

pire

11/28/10 11:01 AM

#31047 RE: naturalborninvestor #31039

#30676--Counter-intuitive pricing to me. At no other time of the year are demand curves steeper than in pre-holiday season. As a consumer-oriented business, you would invest in extra advertisement at this time, but not run a store-wide sale unless you desperately need to make space for new inventory. since Bravada is not running own warehouse space (at least we are not aware they are), but use services provided by the distributor, I don't see how this argument would hold.
What may make sense is if you provide different product categories (to instill interest in general and leave other categories unchanged).
However, a store-wide sale is not good news for you as a shareholder, because it means the company rather sells off its products with a minimal margin, because it cannot get sales at regular prices.

#30679--That probably means they need to provide incentives to customers because competition is strong. That, on the other hand, would indicate that the "undeserved market niche" of athletic apparel is in fact a highly competitive business segment with many players competing for a limited audience.

If it were not so, there is simply not a logical explanation for running a sale during this time of the year. If you can provide another explanation, I am happy to hear.