Path: utzoo!utgpu!news-server.csri.toronto.edu!cs.utexas.edu!sdd.hp.com!uakari.primate.wisc.edu!caen!spool.mu.edu!uunet!mcsun!hp4nl!alchemy!ptavoly
From: ptavoly@cs.ruu.nl (Peter Tavoly)
Newsgroups: comp.sys.amiga.misc
Subject: Re: Hey, Commodore has a brain everybody! (Marketing)
Message-ID: <1991Jun20.124430.16546@cs.ruu.nl>
Date: 20 Jun 91 12:44:30 GMT
References: <29305@know.pws.bull.com> <1991Jun12.023209.19315@cs.wayne.edu> <1991Jun13.092203.23979@cs.ruu.nl> <1360@cbmger.UUCP> <1991Jun17.162549.18165@cs.ruu.nl> <1380@cbmger.UUCP>
Organization: Utrecht University, Dept. of Computer Science
Lines: 75

In <1380@cbmger.UUCP> peterk@cbmger.UUCP (Peter Kittel GERMANY) writes:

>In article <1991Jun17.162549.18165@cs.ruu.nl> ptavoly@cs.ruu.nl (Peter Tavoly) writes:
>>In <1360@cbmger.UUCP> peterk@cbmger.UUCP (Peter Kittel GERMANY) writes:
>>
>>>>It has: it's called First Steps or something (I've got the German version:
>>>>Erste Schritte), it includes graphics, all mouse-driven (until you get
>>>>to the shell stuff, but mouse is still supported)
>>>
>>>It's past. It was dropped for cost reasons. 
>>
>>Cost reasons? One disk (~25 cents) + duplication costs (nearly nihil, since
>>duplication companies frequently give discounts on disks themselves if
>>you use their services). All in all, I would exaggerate if the whole package
>>would be more than 5 bucks (including author's royalties!).
>
>Well, plus handling (put it into the box), packaging, author's royalties,...
>You have to roughly estimate that every dollar pure costs mean 3 dollars
>added to retail price (very rough estimate though). And then ca.
>10 $ are already some price argument.

Yes, there must be guy being paid for putting the disk in the box, one that
checks whether the disk has been put in the box properly (QC) and a girl
who brings them coffee... Anyway, what packging? A label of 3 cents???

I already mentioned the author's royalties, no need to restate it, but
rather think about this: I would estimate a fee of 15 US$ if this package was
shareware, but that is not the case, as shareware authors maybe get a few
hundred cheques if their package is really successful (like JR-Comm), but this
disk is (or should be) distributed with every Amiga, which means hundreds of
thousands of copies. Now if the author would get 50 dollar cents per copy,
he would be awarded most royally and be able to buy a Porsche at least. Since
he and CBM would know this in advance, he would not get more than that! Not
many people have sold that much copies, except maybe for D.Braben (Elite).
David Braben now has two Ferraris...

So: Author's royalties: 0.50 US$/copy

Don't tell me that every buck is equal to three on the market, because
sales tax is nowhere 300% !! Anyway your argument does not hold, since
'on the market' means the extra profit the dealers make by increasing the
price, C='s manufacturing costs have nothing to do with this!

There is absolutely no need to make extra costs apart from 1 extra disk,
1 label, 1 copy of the program on the disk (duplication), 1 royalty for
the author. There is NO marketing involved, it is just an extra when you
open the box.

I stated before that I would be greatly exaggerating if I put a pricetag of
5 Dollars on it, but it seems to me that 1 or maybe 1.50 US$ is more
appropriate.

>>Seems to me this is not much on ~$400 (for the cheapest models).
>
>Sorry, it is.

I just can't understand that 1 to 1.5 US$ is too much.. CBM can save that
on telephone costs to users about questions they would have without the
tutorial disk... (And the time/employees they use to answer questions)

The point is, it should be continued since the returns are much higher than
the expenditures. Now tell us the real reasons :^)

>Best regards, Dr. Peter Kittel  // E-Mail to  \\  Only my personal opinions... 
>Commodore Frankfurt, Germany  \X/ {uunet|pyramid|rutgers}!cbmvax!cbmger!peterk

 -Thomas.

This account expires on 01-Sep-91. No more VR, it's RL now! :)
---------------------------------------------------------------          ____
Thomas Tavoly, Commercial Computer Science, HEAO Utrecht, NL.           / / /
ptavoly@praxis.cs.ruu.nl - Thomas speaking!  .sig v3.3               AMIGA /
--------------------------------------------------------------- ____  / / /
 ICE - brain-blasting zombie-making voodoo electronics.         \ \ \/ / /
---------------------------------------------------------------  \_\_\/_/