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Message: Opening Order?

Re: LL, I am almost to the point of believing that / LL and gang

posted on Mar 25, 2008 08:46AM

 

LL -- are you a real basher? If you want to be a good one, I think you will need lessons.  Where's Cassie when you need her.   LOL 

I believe everyone is wrong on this one -- and right, IMO.

In consumer products (stuff sold in stores that you don't eat or isn't usually white), it is rare to see numbers in PRs as the "opening order" is the pipe filler -- likely the largest order.  Repeat orders are not usually as large because there is product in the pipes (store shelves).  In addition, Big Box A never wants you (vendor) to tell Big Box B how many they sell (conversely, or how many they buy).  That is a big no-no when playing with your Big Boy pants on.  This I KNOW.

In commercial biz (non-retail services), numbers are common in PRs because every Tom, Dick, and Harry, INC will tell you anything.  These are companies that like to brag because it begats more biz (extreme example: Enron). Numbers prove the validity of the PR.  The real proof is their next Q report, but there are always those nasty little "non-recurring" expenses.   lol

As for EDIG, I don't think we will see numbers unless we are talking mega dollars.  It is likely the new airline will phase in their new IFE to work through the distribution points and the logistics needed to support each flight. It reamins to be known if they buy in phases as well.  This will also give the new froggie airline a guess at how many units they will actually rent or give away in First Class vs. their own projections or EDIG recomendations.

The discussion of the "opening order" really is silly.  No matter how many they start with, it is how many units they require to fill the needs of their customers that makes EDIG money over the long run.  One and done customers will not pay the light bills.  I believe it was very smart for EDIG to offer support services along with the hardware as they should have a more steady casah flow and services should be a much higher margin, IMO.

If our new fav frogs started with 5 units and then bought 500, then 5000 units, would we be happy or sad about those first 5 units?  Who cares!  It is good news to have something to hype just prior to the trade event.  It gives EDIG some level of notice to any airline looking for a new IFE solution.  Those buyers will read the hype.

All just my $0.02 and worth the price paid... 

John 

 

 

 

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