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Author: n8larson Big gold star, 5000 posts Old School Fool Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 73  
Subject: Re: TurboChef added to the watch list Date: 8/18/2005 4:12 PM
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If this is a premium product with cachet, a customer will buy whether or not he/she will use it. People buy stuff all the time that they don't end up using. The gym membership, the hot tub, the ski jet, the pool table, the piano (and lessons) ...

That's a fair point, and one I hadn't really considered. Do you think that's a marketing wrinkle the Turbochef folks will exploit, or would they (like the sound-biters) just be thinking "Residential market! wow, that's a BIG market!"?

The comparison to the piano and the hot tub raises an interesting question. All three take up a fair amount of space and involve some disruptive installation work (okay, less so on the piano). Would the residential Speedcook oven replace the traditional oven (convection or conduction? I forget...), or would it be an extra thing? Until I read your post, I was sort of assuming the former.

How many people did you know in the '70s and '80s who had an inground pool put in, only to keep it closed because they didn't want to maintain it?

None, but this is an excellent analogy. It makes me wonder, though, does this kind of fad-market wave-riding (I'm being mean) make for a solid enough valuation to take the plunge? And for how long? Interesting point.

If you've just sunk your money into a 4,000 sf home, you just gotta have the best oven, right?

Just like the Sub-Zero refrigerator, I guess. So, full circle--will (and if so, how will) Turbochef be effective in marketing Speedcook technology to this segment of the residential market? Is that where Maytag went wrong?

I just wonder if the home-cooked meal is enough of a relic of a bygone era that entering the residential market is a bad idea. For my money, I'd like to see a fair bit more strength and financial stability (any talk of share buybacks, for example?) before they take the risk, especially given that bigger, stronger companies appear to have done so and failed at it.

-n8
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