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From: louie@sayshell.umd.edu (Louis A. Mamakos)
Newsgroups: comp.sys.next
Subject: Re: Why the big price jump?
Message-ID: <1990Sep22.185557.9470@ni.umd.edu>
Date: 22 Sep 90 18:55:57 GMT
References: <1990Sep21.034515.29804@wam.umd.edu> <3142@uakari.primate.wisc.edu> <45044@apple.Apple.COM>
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I replied the poster that started this thread by mail, but probably should
have posted my response. 

In article <45044@apple.Apple.COM> north@Apple.COM (Don North) writes:

>It should be obvious why NeXT is pricing their new systems, especially at
>the low end, where they are - they are in SURVIVAL MODE.  Believe me, when
>you analyze the COST (NOT end-user PRICE)  of the components going into
>these boxes, they are selling them basically at break-even.  The ONLY way
>that NeXT is going to make it to 1995 is to build market share NOW.

Ah yes, in typical USENET tradition folks have gone off the deep end trying
to explain a relatively simple situation.  The original poster that started
this thread said something to the effect of

	"I can buy the 105MB NextStation from the University of
	Maryland Computer Store for $3220.00, but the 340MB NextStation
	costs $4887.00, why is this?"

First of all, if you are going to compare company pricing policies, you should
probably begin with the list prices unless you know the terms of the discounted
prices being bandied about.  In the case of the University of Maryland
Computer Store, they placed an order for 50 105MB NextStations, and negotiated
a better deal than the normal Educational Discount pricing.

If you order the 340MB system, you're charged the "normal" educational price,
which doesn't have the benifit of the bulk purchase negotiated discount.

Not quite as sinister as it can be made to be, eh?

Yeah, I've ordered a "SLAB" myself, in the 105MB configuration and am looking
at external 300 to 600 MB drives.

louie