Now on the shelf, turn over has gotta be frowney
because that bulb lasts 18,000 hours, right?
So they're not going to be buying it too often.
>> But size is pretty good.
>> Yeah, and I think cost is good too, because this is cheap shelf space,
you certainly don't have to refrigerate it.
Now, what about cross-selling?
>> So I don't think you only go to buy a single lightbulb to a store.
It's usually something that you would buy in combination with other things.
>> Yeah. So I think there's a cross-selling upside.
It might even attract certain customers who are able and
willing to spend more than the average customer.
>> I'd buy that, because I bet you that some of the people that are paying a bunch
of money for an LED lightbulb, are environmentally conscious, and
they are going to the store, and buying the organic chicken, and the organic kale,
and other things on which the retailer might be making a large margin.
>> So, let's take tally here.
How many smileys do we have, and how many frownies?
>> I don't know, I got one smiley, two, three, four.
>> Two, three, four.
>> I got two frownies.
>> So, looks like to me a like a good case to at least give it a shot, and
start negotiating with the retailers to lower their expectations.
>> Yeah, you might have a case with them.
Now, realize if you think you've got a case with them, and
you think you can get that retailer margin down, that
impacts the kind of analysis you would have done in the second question, right?
And it makes these prices have different profitability implications,
both for the retailer, but also for Philips as well.