🚀 go-pugleaf

***********just in case something gets the munchies************

    There have been a number of comments concerning Atari selling the ST in
general merchandise stores at a lower price than in the computer specialty
stores.  Some have stated that this makes the 520ST a 'toy' computer.
Others have said that it will irritate the computer specialty stores but
that doesn't matter because we don't need them anyway.  I disagree with 
both points of view.  Where something is sold does not determine its quality.
And, the computer specialty stores are as much a part of the computer industry
as are the hardware manufacturers and software developers.  Whether the
computer specialty stores will be irritated by this new development depends
on what Atari gives them in compensation.  If this change in merchandising
policy is handled correctly by Atari, it should benefit software developers
and computer specialty stores alike.

    You can develop gigabytes of software, but, if there is no one to buy
it, what is the point?  Atari sold the ST in specialty stores at the lowest
price it could to build a base of developers and cash flow.  Apparently
Atari is satisfied that they can now go on to the next stage in marketing
their product.  By selling in general merchandise stores at a lower cost,
Atari makes the product available to home users (as opposed to developers).
These people want machines with software; they don't want to pay a lot for
them.  If the machines sell in the quantity one would expect from the quality
and price, an enormous consumer base will be established for the developers'
software, and the even greater cash flow will allow prices to remain low.  This
will mean more money in everyone's pockets and an enormous library of off the
shelf software for *all* ST owners.

    Now to the specialty stores.  Specialty stores whether they sell computers,
cars, furniture, or whatever are staffed by salespeople.  Often salespeople
are pushy and many don't know as much about the product they are selling as
as one would expect.  However, we can hope that the people who have given
the computer specialty stores a bad reputation are increasingly in the
minority.  Specialty stores stock a much wider assortment of whatever their
specialty is than do mass market general merchandise stores.  A furniture
store doesn't sell just one type of couch; a computer specialty store doesn't
just sell one printer or one modem.  By specializing in computer equipment,
the computer store can afford to carry a wide selection of software,  a number
of printers, a number of modems, and, yes, a number of computers.  The best
stores have training and consultation services that do help the buyer.  They
compliment the general merchandisers by offering a wider range of goods and
services.  Whatever else might be said about the specialty stores they sell
variety.  (And, no, I do not work, and never have worked, as a salesman for
computers or anything else.)  If there weren't computer specialty stores
(including mail order firms), the choices for all users would be severely
limited.  They provide the market that allows machines like the Atari to be
developed and sold.  In addition, computer specialty stores provide the cachet
needed to enter the business market.  Businesses like to deal with specialty
stores because of the variety they offer, the expertise that is available from
the best stores, and, since most businesses specialize, the fact that these
stores specialize.  Needless to say sales to the business community are nice
to have.

    So why undercut the computer specialty stores?  The article I read in 
"USA Today" (12/27/85) did not make it seem like the specialty stores would be
undercut by the prices of the general merchandise stores.  Rather, it stated
that the current version of the 520ST would be sold for an *undisclosed* lesser
amount in the general merchandise stores and that a 1 megabyte version would be
sold through the specialty stores at the current price ($799 mono; $999 color).
We all know that a knowledgeable person can do the upgrade to 1 meg for under
$50; so either the discount to the general merchandisers will be minimal, or
the specialty stores will have to be offered something else to make their
version of the product more attractive.  I have heard rumors that a DSDD drive
would be bundled with the 1 meg ST in the specialty stores.  (Confirmation or
other rumors would be appreciated.)  Since the double sided drive retails for
about $100 more than the single sided drive there might be some room for play
here.  With the volume sales coming from the general merchandisers, Atari might
be able to eat this cost and allow the specialty stores to sell the 1 meg ST
with the DSDD drive for the same price as, or at a nominal increase from, the
current 520ST.  At the same time, specialty stores are going to carry greater
varieties of software and be the likely merchandisers of higher priced add-ons
such as hard disks and CD ROMs.

    Of course there are a number of people, many of them developers, that have
already bought 520ST's for $799 or $999.  If this change in marketing policy by
Atari is going to work, these people will have to be appeased also.  If the
dealers are going to get a 1 meg ST for the same cost as the 520ST the current
owners should be provided the upgrade at no, or minimal, cost.  And, if a DSDD
drive is put in the dealers package, current owners should be able to trade up
to the DSDD drive or in some way be compensated.  This appeasement is necessary,
I think, because many of the current owners are developers.  Sales through the
general merchandisers depend on software being available.  Software depends on
those developers; so the developers have to be kept happy.

   In conclusion, if this marketing change is handled properly, it will benefit
everyone.  If it isn't, *then* the ST may become a toy computer.  Let's limit
further discussion on this topic to facts, rumors, and titilating speculation.
Puerile and sophomoric comments about machines of whatever persuasion should
either be sent to net.flame or kept to oneself.

Al Gaspar <gaspar@almsa-1.arpa>
USAMC ALMSA, Box 1578, St. Louis, MO  63188-1578
(314)263-5118
!seismo!brl!gaspar@almsa-1.arpa

DISCLAIMER:  These ramblings are my own, and I have no affiliation with Atari
or any other computer manufacturers, sellers . . .