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re: Ann: VitroGro Sales Planned to Start in J... "we still have...

  1. 1,739 Posts.
    re: Ann: VitroGro Sales Planned to Start in J... "we still have no idea of its terms, such as what share of the partnerhip does TIS have, etc..."

    And what help would that be exactly?
    If you don't know the price that the product sells for, then knowing percentages that are likely held in a commercially sensitive document won't help you.

    My guess is that there is going to be a period of 'price testing' for this new product. You need to find the balance between what the market is prepared to pay and maximise profit. Eg:

    If you sell at 1c each you sell all your units but make no profit.
    If you sell at $10 each you sell less units but make some profit.
    If you sell at $1000 each you sell hardly any units but make lots of profit per unit.

    So ... what's the right price to sell for?

    Coles does this all the time to you in the supermarket, pretending that prices are down. Actually the prices are set as high as they think they can get away with.

    The real question you should ask is ... is the TIS strategy correct?
    Have they:
    Chosen to launch in the right country?
    Targeted the right market?
    Chosen the right partner?
    Is the partner employing the right people?

    I suspect that the success of this product won't be based on how good it is, or the percentages that TIS gets. It will be based on how well it is sold.

    I suspect the share price is going up because a broker got off his ass, and started recommending it to clients again.

    Sales will go up if the salesmen at Quintiles do the same.
 
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