Article View: comp.sys.next.misc
Article #1935Re: Stability of Next as a company
From: Ronald C. Antony
Date: Wed, 09 Sep 1992 05:18
Date: Wed, 09 Sep 1992 05:18
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In article <HARDY.92Sep6231009@golem.ps.uci.edu> hardy@golem.ps.uci.edu (Meinhard E. Mayer (Hardy)) writes: >With the current DM/OS/USD ratios NeXTs in Europe should be outright >bargains. Something is wrong if prices don't fall together with the >Dollar! (Isn't that the purpose of keeping the dollar low? ). Wrong! The purpose of having a low dollar is that you can raise the prices in Europe, once the dollar goes up again. The typical price movement is as follows: 1) Vendor uses a historical multiply with 2 approach to set the DM or SFr. prices. (Compare that with the usual exchange rates that vary from 1.3 to 1.7). 2) If dollar goes up: the price goes up by the same ratio If dollar goes down: nothing happens except occasional special offers. 3) Technology is outdated, new products are in the wings: Get close to US prices while product is discontinued in the US 4) Competition gets really stiff: argue about quality and brand name image, but leave the price where it is. 5) If gray-market conditions threaten to drive prices down: stop servicing products no bought in Europe, punish dealers that sell from the US to Europe. Leave pricing almost intact, but lower the price symbolically such that you can claim things got cheaper AND have service. Ok, this might be a bit harsh, but it is VERY close to the strategy almost all vendors have. This is however not a NeXT specific problem. (This does however not excuse NeXT from participating in the game.) Only the PC market behaves a little bit different, since the far east imports drive the prices down. But the TOP-brand-name companies are fairly untouched by that (i.e. IBM, Compaq, Toshiba) ------------------------------------------------------------------------------ "The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man." G.B. Shaw | rca@cs.brown.edu or antony@browncog.bitnet
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Newsgroups: comp.sys.next.misc Path: arc1-ca.pugleaf.net!sparky!uunet!brunix!brunix!rca From: rca@cs.brown.edu (Ronald C. Antony) Subject: Re: Stability of Next as a company Message-ID: <1992Sep9.051855.17665@cs.brown.edu> Sender: news@cs.brown.edu Organization: Brown University Department of Computer Science References: <1992Aug23.195508.566@prim> <1992Sep6.161044.3617@news.tu-graz.ac.at> <HARDY.92Sep6231009@golem.ps.uci.edu> Date: Wed, 9 Sep 1992 05:18:55 GMT Lines: 34