Path: utzoo!utgpu!news-server.csri.toronto.edu!rpi!usc!apple!rutgers!bobsbox!graphics!bobl
From: bobl@graphics.rent.com (Bob Lindabury - SysAdm)
Newsgroups: comp.sys.amiga.graphics
Subject: Re: Animation Journeyman: Wayne Knapp's Reply
Message-ID: <VBiX32w164w@graphics.rent.com>
Date: 2 Jun 91 19:22:18 GMT
References: <193b58af.ARN1010@cbmami.UUCP>
Organization: The Graphics BBS (2D,3D,GIF,Animation) +1 908/469-0049
Lines: 55

jason@cbmami.UUCP (Jason Goldberg) writes:

> 	When I called your company, all I asked is that you let me break
> even on the product.  If you are selling the product for $500 then you have
> to sell it to me for $450 so that I can cover my costs in ordering the 
> product, displaying the products, training my staff, etc... and still sell
> the product for $500 so I am competative with you.  Its funny that you are
> worried about me undercutting you, because I am worried about you
> undercutting me!  It seems all too likely that I buy JMan for $500 and sell
> it to my customers at my loss for $500, only to have you walk around a
> shows saying "JMan costs $500 but if you buy today I can give it to you for
> $450."  What I am trying to avoid is spending my time promoting your
> product, only to have my customers go to you and buy it for less.  

I believe your above stated logic is wrong.  You do *not* have to
purchase Jman for $450 to cover your costs.  I don't know what kind
of business you are running there but it seems to me that if you are
basing your profit on the sale of hardware that is working around the
Jman product, then you can slip in an additional "system" fee and
cover your costs that way.  We sell systems to people but when we
talk to them we tell them right up front that if they are shopping
for price, they should look elsewhere.  We provide a *complete*
solution to our clients particular needs and that type of service
comes at a premium.  We don't sell them a system and itemize each
piece.  We quote a solution to them and a cost for that solution.
Since people purchasing he Jman product need much more than a stock
Amiga, it would seem to me that they are going to need the expertise
and knowlegable help of a reputable dealer/VAR.  The payback comes in
service and a training program.  I suggest that instead of
bellyaching to Wayne about how terrible Hash's pricing structure is,
you rethink how *you* market your systems and come up with a solution.

After all, $500 for a product like Jman is ludicrous.  It should be
going for > $1000 a pop.  Would you feel better with a list price of
$1000 and you paying around $800?  At that point, you are just
playing the old numbers game where the middlemen win and you lose.

We charge close to list for everything we put into our systems
because we are supplying the knowhow to the people so that when they
get to thier studio they are not sitting in front of a bunch of
high-priced hardware not knowing which end is up.  We provide the
training and procedures our clients need to immediately start
producing on the system.  This is where you should be thinking about
making money.  Not on margins and quantities.

What ever happened to customer service in America!?

-- Bob

 The Graphics BBS  908/469-0049  "It's better than a sharp stick in the eye!"
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