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Innotrac Anonim Ortaklık Message Board

  • inocinside inocinside Nov 4, 2002 12:05 AM Flag

    Re: I think

    Clearview -

    I too have watched INOC for many years, unfortunately I cannot share your regard for Scott (Dorfman) at such a high level.

    INOC thrived many years in spite of itself. When you have a client like Bellsouth that lets you sell caller ID units for a hundred times their cost and bill on the customer's phone bill, it is hard to lose money. The problem is, this allowed INOC to take on clients that had a great name but were money losers without a major effect on the bottom line. Being a private company at the time, it did not matter, INOC got a big name and the bottom line did not suffer too much.

    Two things have happened since then.

    1) The game has changed- there is no longer the high margin telecom dollars flowing in. Innotrac is now "fee for service" thus they must price their services to make a profit. (These services need to include IT start up costs). INOC has historically had a problem in the areas of pricing for profitability, and holding down start-up costs. Unfortunately for Innotrac, every customer they garner wants some ultra-customized fulfillment system. Threfore IT costs skyrocket just to start up the client. What is even more unfortunate is that INOC seems to get these deals without regard to how much it will cost to start-up. These customers also don't stick around long enough to re-coup the start up costs (many times this is due to problems at Inoc, and other times it is SOP for the client).

    2 - Scott is no longer as hands on as he used to be. At one point, not too long ago, Scott was involved in most every sale, project, and client at INOC. Those days are long over. He has hired a string of VP's to handle these for him. Unfortunately his choices for VP's has not worked well for him. If you look, over the past 3 years, there are only 2 that have stuck, and they were there from the "glory days" mentioned before.

    Fundamental errors aside, the company could have potential, however given the track record since going public.. me thinks there are more hard times ahead unless something changes in upper management.