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- Newsgroups: comp.sys.next.misc
- Path: 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
-
- 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- 3) Technology is outdated, new products are in the wings: Get close to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
-