Path: utzoo!dptcdc!jarvis.csri.toronto.edu!mailrus!tut.cis.ohio-state.edu!cs.utexas.edu!uunet!fct!ron
From: ron@fct.UUCP (Ronald P. Hughes)
Newsgroups: comp.unix.microport
Subject: Re: Resurrect V/AT?
Summary: Count the costs!
Message-ID: <373@fct.UUCP>
Date: 17 Apr 89 19:13:49 GMT
References: <196@carpet.WLK.COM> <99264@sun.Eng.Sun.COM> <197@carpet.WLK.COM>
Distribution: na
Organization: Fall Creek Technologies, Felton, CA
Lines: 31

In article <197@carpet.WLK.COM>, bill@carpet.WLK.COM (Bill Kennedy) writes:
> ... $30 for production and shipping, then how was Microport
> surviving at $199 for (retail) V/AT with dealer and OEM terms?
> A $19/copy margin isn't very healthy.
                    ^^^^^^^^^^^^^^^^^^

You could be on to something here.  Keep in mind Microport's current status.

I worked for Microport for almost a year.  There was a little saying
that upper management was fond of repeating:

    Each one we sell, we sell at a loss, but we make up for it in volume.

I left when I realized that there was more truth than humor in the above.
I also recall some theories about "buying market share", which I was not
quite able to comprehend.

My personal opinion is that UNIX will never be available for as low
a price as Microport's.  If you find one that cheap and you decide
to buy it, I would not recommend their lifetime support contract.
Their life may not be as long as yours. ;-)

On the other hand, if you're thinking of embarking on such a venture
yourselves, you need to either ship much higher volume than Microport, or
charge a significantly higher price.  (Or just cut back on the quality :-)

Good luck!

Ronald P. Hughes
Fall Creek Technologies
ron@fct.uu.net