Path: utzoo!utgpu!watserv1!watmath!att!rutgers!ucsd!sdd.hp.com!wuarchive!udel!mmdf
From: BARRETT@owl.ecil.iastate.edu (Marc Barrett)
Newsgroups: comp.sys.amiga
Subject: Re: For all you who want more advertizing
Message-ID: <34005@nigel.ee.udel.edu>
Date: 19 Oct 90 19:05:16 GMT
Sender: mmdf@ee.udel.edu
Lines: 83


In Message <1990Oct19.051510.15213@cunixf.cc.columbia.edu> Ethan Solomita
<es1@cunixb.cc.columbia.edu> writes:

>	There is one thing which many people are either
>forgetting and not realizing. Every dollar which Commodore spends
>on their advertising budget is taking a dollar away from some
>other important division, such as improving the O/S, etc. Also,
>the advertising money could be not-spent and thus lower our
>prices.

   This is true, but very misleading.  Advertizing is the very best form
of spending, because it directly results in increased sales, and thus
more revenues.  If Commodore were to only spend money on R&D, support,
and manufacturing, their sales would go to zero, and they would not have
any more money to spend on R&D, support, and manufacturing.  Whereas if
Commodore would spend more money on advertizing, they would get more 
revenues, and thus have more money to spend on advertizing, R&D, support,
and manufacturing.

>	Commodore is running themselves, recently, as a
>not-for-profit company! They made only $1.5 million on sales of
>over $850 million this past year (7/1/89 - 6/30/90). That is
>compared to a profit on the order of $50 million on $950 million
>in sales the year before. Commodore has not payed dividends in
>ages. They are spending every dime they have, and borrowing to
>boot. Commodore only has just so much money.

   Why is this?  Perhaps it is because Commodore is now paying the price
for not doing any advertizing for the past five years.  Commodore has
to make up for the lack of advertizing for the past five years, plus
spend more money equivelent to the amount of money they'd be spending
on advertizing now if they had been advertizing for the past five years.

   There is a similar story in R&D.  It is obvious now that, until 
Copperman came along, Commodore did not do much in research and
development for the Amiga.  If Commodore had started doing any research
and development of the 32-bit chipset three years ago, it should be
finished by now!  But I am willing to bet that Commodore did not no
any R&D on the 32-bit chipset until Copperman came along and put 
things in order.  So, Commodore has to make up for the lack of progress
in R&D for the past five years, in addition to spending more money
on R&D equivelent to the amount they'd be spending on R&D now if they
had been making progress for the past five years.

   It all comes down to the sins of the past making Commodore's
present a real nightmare.   
   
>	Apple this QUARTER had sales of over $1 billion.
>Commodore cannot compete on a financial level with Apple, yet.
>Don't expect as many ads as Apple gives or you'll be
>disappointed. Besides, Apple already has a professional image.
>They can show a computer and people will say it must be good.
>Commodore doesn't get the same respect when they advertise.
>People should be behind the A500 advertisements, because if it
>weren't for the sales of the A500 Commodore would be bankrupt
>long ago.

   And why is this?  Perhaps it is because Apple has been making study
progress in all areas for the past five years.  Apple has been doing
steady, continuously increasing advertizing for the past 10 or so years,
and Commodore didn't advertize at all until recently.  Apple has also
been steadily increasing all of the MACs capabilities since its 
introduction, whereas even the very latest Amiga (the Amiga 3000)
still has the same color, sound, and overall graphics as the very 
earliest Amiga (the Amiga 1000). 

   BTW, when you compare Apple's U.S. sales revenues to Commodore's U.S. 
sales revenues, the difference is even greater.  Apple's U.S. revenues
outnumbers Commodore's U.S. sales revenues by a factor of about 20.

>	All IMNSHO's liberally dispersed where required. 8)
>
>	-- Ethan
>
>Ethan Solomita: es1@cunixb.cc.columbia.edu
>
>GorbachevAwards++;
>free (SovietUnion);
>IndependentRepublics += 15;


                                   -MB-