Path: utzoo!attcan!utgpu!jarvis.csri.toronto.edu!cs.utexas.edu!usc!apple!motcsd!hpda!hpcuhc!edwardm
From: edwardm@hpcuhc.HP.COM (Edward McClanahan)
Newsgroups: comp.sys.next
Subject: Re: Who will buy the NeXT
Message-ID: <680018@hpcuhc.HP.COM>
Date: 4 Dec 89 19:38:48 GMT
References: <964@abvax.UUCP>
Organization: Hewlett Packard, Cupertino
Lines: 52

Karl Denninger responds:

> >On this line, though, I have heard rumors of upcomming legislation to
> prevent educational discounts.

> It's about time the law was changed on this.

> One of the things that REALLY pisses off a dealer is when the local college
> sells 3,000 machines BELOW THE DEALER'S COST to students -- and the dealer
> gets stuck supporting those units.  Some of those, inevitably, find their
> way into the grey market and outside of the university.

> The result of this?  Ask the dealers in Ann Arbor, MI.  More than a couple 
> have gone out of business in the last couple of years due to the U of M's
> "Truckload sales".  Happens every year.

> This is not good folks.  Remember, this isn't like signing a dealer on -- the 
> universities are literally opening up the backs of Semi Trailers and selling 
> the machines off the loading docks!  Support and service?  That's for the 
> local dealers to provide (free, of course, since the system does come with a
> warranty!)

Wait a minute...  I realize that "support and service" takes time.  And, that
"service" is often not billed to the customer because they have a warranty.
But I think you are missing something here...

Consider the case of an Auto Dealer Service Department.  They do not insist
that you bought your car at their dealership in order to get warranty service.
Of course, they would like that to be true (so they make money there, too).
But when a dealer's service department does warrenty work on my car, they
simply bill the manufacturer.  The best example I can remember is when my
'84 Fiero was "recalled".  I bought the car in Southern CA and now live in
the Bay Area.  No, I didn't have to take the car 400 miles to be worked on.
I wasn't even asked.  In fact, GM kindly suggested a dealer close to where
I now live to do the work (probably around $2500 on my car, others had entire
engines replaced).  Admittedly, one reason shops don't like to do warranty
work is because the manufacturer doesn't pay them as much per hour as the
lowly customer.  Thus, if the warranty work prevents the shop from doing
non-warranty service (where they make more money), they might mind.

I don't view a service station (or computer retailer) getting additional
customers (that they get paid to service by either the manufacturer or
the customer) to be a bad thing.  If a shop can't handle the demand, they
are missing a great opportunity.  They name of the game is VOLUME, remember?

=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=

  Edward McClanahan
  Hewlett Packard Company
  Mail Stop 47UE              -or-     edwardm%hpda@hplabs.hp.com
  19447 Pruneridge Avenue
  Cupertino, CA  95014                 Phone: (408)447-5651