Path: utzoo!attcan!uunet!lll-winken!ames!pasteur!anableps.berkeley.edu!korn
From: korn@anableps.berkeley.edu (Peter "Arrgh" Korn)
Newsgroups: comp.sys.next
Subject: University Price of NeXT  [was Re: Some Random NeXT Thoughts]
Keywords: NeXT Speculation Cost Future Marketing
Message-ID: <12488@pasteur.Berkeley.EDU>
Date: 16 Apr 89 07:08:30 GMT
References: <12017@ut-emx.UUCP> <4698@umd5.umd.edu>
Sender: news@pasteur.Berkeley.EDU
Organization: What, me organized???
Lines: 69

In <4698@umd5.umd.edu>, feldman@umd5.umd.edu (Mark Feldman) said:  
>In article <12017@ut-emx.UUCP> osborn@ut-emx.UUCP (John H. Osborn) writes:
>>People keep throwing around the $6000 to $6500 price.  According to the
>>price list available from my university's computer store, the price is
>>more like $7500.  $6000+ for the cube plus $1250 for the display.
>>Is the $6500 price, so often quoted, deliberately misleading, or is
>>my university (U-Texas at Austin) adding on to the base price for
>>additional profit?
>
>$6500 is the higher education price for the base NeXT computer (8MB ram,
>optical drive), including the megapixel display (the cube is useless without
>the display). 
>
>Your University is probably adding to the base price to cover their costs --
>not to achieve a profit.  Stocking, distributing, supporting, and servicing
>computers costs money.  It's much more fair to have the people purchasing
>the computers pay for this necessary overhead than to have everyone's
>tuition subsidize your NeXT purchase.  

Having worked in University sales of computers (Macintoshes, HPs, etc.), I
want to point out that $1,250 is NOT at all a reasonable figure to cover
stocking, distributing, supporting, and servicing a computer.  Yes, NeXT
wants more support and service that most.  But only 90 days worth of that
service and support comes from the initial price of the machine; any more
would be purchased separately through a service agreement.  I will also
grant that University departments will want (and receive) more than 90
days worth of support w/out additional cost.  However, almost all such
departments at almost all (if not all) are paying the $6,500 price for the
machine, and not paying anything like $1,250 more.  

I've been looking into purchasing a NeXT.  As a UC Berkeley student, I
cannot purchase one from my university because it is apparently felt
that there isn't enough demand for individual purchases here.  However I
can go to UC Davis to purchase one.  The price for a base cube, with
the monitor and optical drive (which Davis pays $6,500 for) is $7,830.
Which means I'd be paying $1,330 for the Davis bookstore to order the
machine, take it off a truck and put it into a room, take it out of the
room and give it to me, and help me with any problems for 90 days (though
the cost of any repairs and parts needed for such repairs would be reimbursed
to Davis from NeXT).  This price, btw, is before I pay California sales tax.

Not all campuses mark up NeXT machines by 20% or more.  Some are as little
as 5% (the lowest I've found so far).  At 5% we're looking at $325 payment
to the university (or university bookstore) to pay it's employees, etc.
which is well within reasonable payment, if not on the low side (then again,
it depents upon how many they move/month).


Most retail computer stores are quite happy with a 20% markup on hardware.
Most retail computer stores have to pay rent, have to (somewhat aggressively)
sell their merchandise, have to train employees, have to pay for advertisements,
etc.  Most universities don't pay rent, don't need to aggressively sale
their wares, have lots of college students willing to work for cheap who
already know lots about the machines, and don't need to advertise.


NeXT has done a fair amount of work producing a very nice machine at a very
reasonable price.  The least our schools can do is add only what charges
they need to cover their costs before letting students and faculty purchase
this machine.  After all, our universities are there to provide access to
education and the tools of education; and not to maximize their profits...
aren't they?


Peter
--
Peter "Arrgh" Korn
korn@ucbvax.Berkeley.EDU
{decvax,hplabs,sdcsvax,ulysses,usenix}!ucbvax!korn