Back cover item for Black Friday in all Walmarts at 19.88, half off. I'm sure they gave Walmart a great cost on these but I am also pretty sure ZAGG will be making something on potentially huge sales if they are doing pallet buys.
iFrogz™, a ZAGG Inc brand (NASDAQ: ZAGG) specializing in creative, value-priced mobile accessories, will sell their award-winning Boost speaker in Walmart locations for Black Friday. The Boost will be available on pallets at Walmart locations nationwide for the shopping day.
As someone who has experienced first hand the insanity of Walmart on Black Friday I can tell you that being on a pallet is huge. When the workers take the shrink wrap off the pallets it doesn't matter what is in there, the mob is taking everything they can get their hands on. I would imagine that the sales are going to be huge, however I can't imagine that their margins are anywhere near what they are on their invisible shield. I don't know how you sell speakers for less than the plastic shields. Does anyone have any idea what iFrogz costs are for making these things. I am just nervous that they will have a record quarter as expected, but their margins will drop and as we have seen with ZAGG any possible angle will be used to spin a record quarter as negative.
my guess is that zagg is building their relationship with walmart. sometimes you have to take a margin hit to earn that good-will and get more of your products in the regular mix. the biggest short-term opportunity for zagg is increasing the distribution of their full product offering across all major retailers. i dont think this announcement is a huge positive, but it probably does speak to the strategy of building relationships with key retailers.