From: Randal Whittle (whittle_at_chaph.usc.edu)
Date: Wed Jun 21 1995 - 01:05:46 EDT
> " What does historical prices have to do with IBM's *current*
> pricing on this drive being so *far* out of whack with the current
> You have not given a shred of evidence that this is "out of whack" with
> the current market. That would be hard to do, as IBM is leading this
> market technologically, so right now, there are no comparison points.
Did someone not already point out that IBM was providing these
drives to OEM's for resale/inclusion in their machines at the low price
of $800 or so?
Robert, does this or does this not tell you something? Quantity
discounts aside, this should tell you that IBM can sell these things at
a *lot* lower price and still make money. Now I don't expect the
consumer to get OEM prices, but paying well in excess of 2x as much
as the OEM does is a pretty nifty trick.
From a pricing point of view--and I'm speaking this only from
my education and experience--it appears to me that priced it at a point
where they could maximize their dollar--maybe. I personally think they
could do better by pricing it lower and selling more of them. *But*--
maybe they can't make enough and this is their way of controlling demand.
There are many reasons for pricing--perceived value being the best
method. But all you get with that one is the suckers (or the desparate).
Their money is as good as anyone else's, so I see no reason not to take
it. I just consider the extent that IBM has taken it in this instance
to be a bit insulting to its customers. The OEM pricing shows it certainly
isn't necessary. This is the "old" IBM resurfacing. They can't afford
to keep doing that regularly.
> you may say, well I don't want a small disk if its that expensive. Fine,
> that's up to you, but lots of us need the maximum disk space on a notebok
> and are willing to pay the price, which is good, since it provides the
> funding to keep this technology marching forward. Personally, if there
> were a 3 gigi 2.5" disk at $3000 or so, I would order it immediately.
And I quite thank you for providing the funding to finance
the cutting technology which I will later buy much cheaper. ;)
Randy Whittle whittle_at_usc.edu | Making South-Central |
USC Graduate School of Business (Fight on 'SC!)| L.A. a better place by |
-Counselor, USC Business Expansion Network | helping small businesses |
| help themselves. |
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