Originally posted by Gadget
I think they must be profitable, or they wouldn't have made them in the first place (although I doubt they make much money per marker).
The thing is, although they're selling at the moment, they're not exactly going like hot cakes - and in 6 months time will they sell at all?
There's no guarantee of their continuing saleability.
If it were your money, would you take the risk on spending a big bundle of money to restock the inventory and continue production when:
a) Sales might die out completely at any time, leaving you with $100,000 of inventory which you can only sell one part at a time as spares.
and
b) Continuing to market an electronic marker might leave you open to legal action.
If it were my money I'd be doing exactly what Tom has done. Retire some product lines (particuarly ones that could present a future legal problem), focus on doing a few products well, be careful with my money and look into R&D for future products.
It's the safe route and the one most likely to keep AGD in business in the long term.
I think they must be profitable, or they wouldn't have made them in the first place (although I doubt they make much money per marker).
The thing is, although they're selling at the moment, they're not exactly going like hot cakes - and in 6 months time will they sell at all?
There's no guarantee of their continuing saleability.
If it were your money, would you take the risk on spending a big bundle of money to restock the inventory and continue production when:
a) Sales might die out completely at any time, leaving you with $100,000 of inventory which you can only sell one part at a time as spares.
and
b) Continuing to market an electronic marker might leave you open to legal action.
If it were my money I'd be doing exactly what Tom has done. Retire some product lines (particuarly ones that could present a future legal problem), focus on doing a few products well, be careful with my money and look into R&D for future products.
It's the safe route and the one most likely to keep AGD in business in the long term.


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