December 21, 2007 | Posted By : Tom Millitzer at 9:31 PM PERMALINK | Blog Comments (0)

iWeb You A Merry Christmas -- Santa comes to Montreal

iWeb Group Inc. (TSX-V: IWB) posted its 2007 fiscal results (ended Sept 30th) just in time for the Christmas party.

How did iWeb do?

Revenue was $9.8 million, an increase of 71% over 2006.
Adjusted EBITDA was $2.8 million, 29% vs. 25% in 2006
Gross profit margin was 57%, compared to 54%.
Revenue improvement was driven solely by organic sales growth.
80% of revenue from dedicated hosting, shared and colo 10% ea.

What is in Eric Chouinard's (iWeb, President and CEO) Christmas stocking? Exactly what was at the top of his list, $4.1 million (net proceeds of a recent public offering) to build out the firm's 3rd data center in Montreal, should hold another 850 cabinets.

Above the iWeb water cooler the note stated "Le parti de Noël programme comme planifié."

"The Christmas party is scheduled as planned."

And in passing I also wish all the WHIR folk, the readers and all of your families a merry and safe Christmas - Tom

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December 8, 2007 | Posted By : Tom Millitzer at 8:56 AM PERMALINK | Blog Comments (0)

CompUSA Woke Me Up - I thought this was over.

In a recent blog about Best Buy and Circuit City I unfortunately added CompUSA. Waking up I find CompUSA is going out of business...rather than making this fodder for a blog sequence rivaling War and Peace...

From these possible headlines - Imagine your own ephemeral blog...

-103 CompUSA Stores Close - Chuck expands production sites nationwide.

- CompUSA, controlled by Mexican Carlos Slim Helu's Grupo Carso - Sites key in immigration reform.

- Let's make a deal - haggle at CompUSA before Christmas.(Lame headline but true.)

- TECHPRO - no competition to Geek Squad and Firedog

- Warren - no new polo shirts this Christmas at CompUSA

and...last but not least...

- Breakage Key to Success, "Honey, did you send in that CompUSA rebate yet?"

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November 29, 2007 | Posted By : Tom Millitzer at 1:24 PM PERMALINK | Blog Comments (3)

Firedog - Nothing about Hosting - Something about Profits

Recently I wrote a blog about Firedog and the Geek Squad. I need to put this subject to bed so I can get on with better things. But I did learn something.

First - promotion wise Circuit City (Firedog) is way ahead of Best Buy (Geek Squad) in advertizing and promoting the service. After visiting both, the in store emphasis reflects the ad space. Firedog is way ahead, "it has it all" - I love that line.

Going to both stores was problematic - in the spirit of providing the best info for these blogs, my wallet eventually came out. All three stores got into my pocket. Did I say 3? Yes, CompUSA actually got most my cash and even haggled several hundred dollars less than BB & CC. Highly recommended for hagglers - as I now struggle with 120hrz.

Now price points for a flat screen TV installation/theatre co-ordination (Oh yes CompUSA has TECHPRO, which by the way, reminds me of Chuck and his buddy Morgan).

Geek Squad - Figure $500
Circuit City - Around $450

I opted for spending Thanksgiving weekend learning about and installing my new toys (Which can only be described as a custom job) and figuring out why Best Buy does not push the Geek Squad.

Why isn't the Geek Squad pushed by Best Buy? Best Buy is in it to make money. At $500 a pop it is just too labor intensive. Magnolia - a humbling experience.

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October 14, 2007 | Posted By : Tom Millitzer at 1:34 PM PERMALINK | Blog Comments (6)

firedog KO's Magnolia - 31 to 4

I may be gong out on a limb here, but I think Magnolia is dead.

During my Sunday read (Inserts from Lowes, Best Buy, Circuit City, and Solder of Fortune) I noticed that Circuit Cities firedog(sm) installation brand was prominently displayed 31X in the 28 page insert. It was on almost all the plasma, LCD and computer screens. I think they were trying to make a point.

On TV Mike Ditka and John Elway aimlessly wandered into Circuit City, "Firedog does it all" says Ditka.

I turn to Best Buy, also a 28 pager. Magnolia, the installation department that theoretically is in competition with firedog(sm), is no where to be found. In even searched the insert online it read, “Sorry, we could not find any items that matched "magnolia" in the current circulars and catalogs.” Someone in the marketing department must have made a mistake…after all this is big league competition. Or as Vincent D'Onofrio would say, “This is odd”.

However, I did notice that there were four little itty bitty page corners (pgs 8-11) stating something like the Geek Squad can install your home theatre, but as Ditka should eloquently enquire; "Does it do it all?"

Basically it appears that the Geek Squad is replacing Magnolia (as an installation group) and Magnolia is now a comfortable home theatre display with twin Barkoloungers in the back right corner of the store.

What do you want in your home? Firedog of Magolia? Magnolia however could possibly work for Susan Hunter.

Lesson - It takes guts to battle someone like Best Buy the way Circuit City has. It takes more moxey to take a 360 degree turn overnight and admit you have made a branding mistake like Best Buy. After all Ditka is running around saying "Firedog does it all". Don't worry Mike, next Sunday Best Buy will turn up the Geeks.

And finally I am speaking at ISPCON in San Jose October 16th, “Positioning Your Internet Company for Sale - and Making More Money”

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