Iomega 12x10x32 CDRW (burnproof) drive for $99.99...
- Thread starter Cuch
- Start date
You can't. It was at compusa last sunday and monday only. The deal is over and the price of the drive is now $279.
O'course not!! 
Unless you can turn back time. Best Buy can't issue the rain check for the previous sales.
Unless you can turn back time. Best Buy can't issue the rain check for the previous sales.Actually..best buy in my area still has them for $129 before rebate...thats what the tag said..and had like 2 in stock yesterday when I was there..
Just as a friendly warning to you... The Hot Deals forum is only for posting actual Hot Deals. To request a Hot Deal, there is a thread called "~~~I WANNA~~~" where you can request hot deals, you can search for this thread by typing in ~~~ in the search field. Good luck finding the Iomega drive!
Give this deal another month or two. Heard it through the grapevine that Iomega is seeing some tough financial times as of late. What else would explain CompUSA dumping these things for almost $200 off? Take this with a grain of salt, but certain "insiders" at other spots on the net prophesy some tough times ahead for Iomega. You may find a lot of other retailers dumping their product if this turns out to be true. G'luck.
I for one agree, Iomega is jumping on the bandwagon with rebadging Plextors as TDK did. Seems the technology that once made them the success they were (Zip/Jaz Drives) is nowhere as profitable as it was before because of newer cheaper media types (CDR, CDRW). Feel kind of bad for the company, they are scrambling in to a technology that will lead to their ultimate downfall. Shoot Iomega doesn't even manufacture the popular CDRW drives that they sell under their name.
Couldn't image CompUSA did that because Iomega is in trouble. Why don't they dump the 8X CDRW first? Now that they did the 12X, who would want to buy the 8X, even if it's at $99. Everyone would expect they can get the 12X at that same price in a couple months.
iomega is rebadging a sanyo drive, just as plextor is.... i wonder if plextor has rebadged drives in the past?
Yep, they have rebadged in the past. The old 2X write only (PX24T???) was a Ricoh. It was a caddy-type drive. I had the Ricoh and my buddy had the Plextor. Same drive.
Iomega (NYSE:IOM) did in fact warn analysts on Friday that they weren't going to make their revenue and earnings estimates for the quarter ended December 31. But that doesn't mean they'll be giving away those ZipCDs for $99 again anytime soon.
I think the reason they did that deal is that their revenues for the quarter were so poor that they had to move some merchandise into retailers' hands to bump up their numbers as much as possible. CompUSA took delivery of the drives at the end of the December so that sale counts for the quarter.
Iomega's next fiscal quarter ends on March 31st so maybe they'll do another $99 deal then, but I don't expect one before since they're probably not carrying as much inventory now anyway.
I think the reason they did that deal is that their revenues for the quarter were so poor that they had to move some merchandise into retailers' hands to bump up their numbers as much as possible. CompUSA took delivery of the drives at the end of the December so that sale counts for the quarter.
Iomega's next fiscal quarter ends on March 31st so maybe they'll do another $99 deal then, but I don't expect one before since they're probably not carrying as much inventory now anyway.
You just have to ask yourself one question? Why would Iomega sell a "cutting edge" drive for a loss?
The answer is that CompUSA is able to take advantage of the "limited" shelf space they offer. In a sense CompUSA can say, "give me the drive to sell at $99 and we will still do business with you. Iomega has little choice in the matter if they want to continue business in popular retail channels for their products. To add insult to injury, Iomega will also be paying CompUSA 20 to 50 thousand dollars on top of that for the ad run in national newspapers, because CompUSA is providing "Brand Recognition" to Iomega. Oh, yes Iomega, you must also overnight drives to CompUSA stores that are low in stock, so that they have enough on hand for the event. Any person in the perepheral industry knows that this is truly a sad situation for manufacturers in highly competitive markets, though good for the consumer of course
Yes, I believe Iomega is definitely at the end of their life at this point.
The answer is that CompUSA is able to take advantage of the "limited" shelf space they offer. In a sense CompUSA can say, "give me the drive to sell at $99 and we will still do business with you. Iomega has little choice in the matter if they want to continue business in popular retail channels for their products. To add insult to injury, Iomega will also be paying CompUSA 20 to 50 thousand dollars on top of that for the ad run in national newspapers, because CompUSA is providing "Brand Recognition" to Iomega. Oh, yes Iomega, you must also overnight drives to CompUSA stores that are low in stock, so that they have enough on hand for the event. Any person in the perepheral industry knows that this is truly a sad situation for manufacturers in highly competitive markets, though good for the consumer of course
Yes, I believe Iomega is definitely at the end of their life at this point.
Kitros, you are correct, except to note that CompUSA is probably making a little money (or at least breaking even) on selling the drive at that cost (yes it's true) and Iomega is probably losing $60 on each drive sold. CompUSA/BB/OD/OM/Staples...etc "bait" ads are 99% of the time funded by the manufacturers and distributors, both the price reduction and the proportionate cost of the ad (in this case the Sunday ad).
Iomega sales executives should present this formula for approval of the deal by the CEO
example.
250 chain stores X 10 drives (per store avg) X $60 = $150,000 margin erosion for Iomega
$30,000 for the coop advertising costs CompUSA will charge back to Iomega = $180,000 cost to Iomega for the promotion.
Iomega will see the "Brand Recognition" as being worth $180,000 because their logo is on the front page and people will be brainwashed into buying their products in the future because the logo is engrained in the brain. Also CompUSA will revoke their shelf space for the CDRW products if they don't... in other words, they really have no choice in the matter.
Of course in reality, the CEO probably wasn't presented this formula and this company is in deep dodo.
Iomega sales executives should present this formula for approval of the deal by the CEO
example.
250 chain stores X 10 drives (per store avg) X $60 = $150,000 margin erosion for Iomega
$30,000 for the coop advertising costs CompUSA will charge back to Iomega = $180,000 cost to Iomega for the promotion.
Iomega will see the "Brand Recognition" as being worth $180,000 because their logo is on the front page and people will be brainwashed into buying their products in the future because the logo is engrained in the brain. Also CompUSA will revoke their shelf space for the CDRW products if they don't... in other words, they really have no choice in the matter.
Of course in reality, the CEO probably wasn't presented this formula and this company is in deep dodo.
Iomega could have replaced floppies if they didn't insist on charging >$100 for a damn 100 meg PARRALEL zip drive.. give me a break if they had aold IDE versions sonner for say $75. everyone would use them instead of floppies. IMO.
Zip250's are on 'SALE' at Bestbuy for $179.99 or so WOW... why? are these things even still manufactuered?!
Zip250's are on 'SALE' at Bestbuy for $179.99 or so WOW... why? are these things even still manufactuered?!
This was a case of OVERSTOCK. CompUSA probably had an inside deal from Ingram Micro to purchase bout 100,000 of these Drives for a cost of around $50-60 each. CompUSA took the bait and sold them for their price just to dump them as fast as they could enter their inventory.
Wrong, CompUSA would not purchase from Ingram, they would go direct to the manufacturer to avoid markup. Also, Ingram will not offer price protection and coop advertising.
As far as the zip disk is concerned:
Way back Iomega used to sell the 100mb zip drive cheap ($100) near cost for them, but then hope to make money off future zip disk media purchases. Once again, unfortuneately for Iomega, the average consumer would buy 2 or 3 zip disks and that was it, though I'm sure Iomega's projections of media sales per drive sale were much higher. I was in the CDRW industry at that time and was surprised CDRW did not replace the zip drive sooner. Of course at that time CDRW 1X discs were around $40 each, but you did get 6X storage for the around the same price as a 100mb zip disk.
As far as the zip disk is concerned:
Way back Iomega used to sell the 100mb zip drive cheap ($100) near cost for them, but then hope to make money off future zip disk media purchases. Once again, unfortuneately for Iomega, the average consumer would buy 2 or 3 zip disks and that was it, though I'm sure Iomega's projections of media sales per drive sale were much higher. I was in the CDRW industry at that time and was surprised CDRW did not replace the zip drive sooner. Of course at that time CDRW 1X discs were around $40 each, but you did get 6X storage for the around the same price as a 100mb zip disk.
Iomega supported CompUSA's price loss on drives sold 12/31 and 1/1, so Iomega took that loss. Compusa is taking the hit on drives sold after 1/1. Everyone who gets one on a raincheck is getting a gift from CompUSA.
Many excellent/intelligent comments!!
Anyone remember the Iomega external storage device sold in the very early 1980's?
About the size of a medium suitcase, and about 25+ pounds.
Came with 1 or 2 removable 10MB storage 'discs' the size of a thin looseleaf binder.
"Unlimited Storage" - Wahoo!!
Anyone remember the Iomega external storage device sold in the very early 1980's?
About the size of a medium suitcase, and about 25+ pounds.
Came with 1 or 2 removable 10MB storage 'discs' the size of a thin looseleaf binder.
"Unlimited Storage" - Wahoo!!
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