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Author: Ttypo Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 21992  
Subject: Re: LVLT is worth... Date: 3/27/2001 2:50 AM
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Don't forget that Crowe kind of cleared up how this elasticity thing works with LVLT in his last conference call. LVLT doesn't cut their prices in half then hope demand doubles. Rather they structure their agreements with their customers such that if the customer's demand increases beyond a certain point, the price LVLT charges them will go down per unit. In other words, I got the feeling that they're not counting their chickens before they are hatched. They're structuring the agreements to encourage increased usage and then AFTER they see that increase, they cut the price, thereby (hopefully) encouraging even more usage.
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