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January 1997, Week 5

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Subject:
From:
Neil Harvey <[log in to unmask]>
Reply To:
Neil Harvey <[log in to unmask]>
Date:
Wed, 29 Jan 1997 07:32:42 +0200
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Just to keep the list posted......

I still haven't heard from Bill Gates re my idea of tier based pricing
for Microsoft Products.

It's a pity, because one of my clients is considering upgrading 100 PC's
from 486 DX2 66's to Pentium 133's.

I'm not sure what the quantum leap is, but I'll bet he'll jump at least
seven tiers - kind of like if he moved from a 925 to a 959/400.

This would result in a substantial "windfall" for me, as a supplier of
things Microsoft, and the great beauty of it is that I don't really have
to do anything!

So, come on Bill, lets get together on this one!

Regards

Neil "tongue firmly planted in cheek" Harvey

P.S. If you use spell checking in MS Outlook (Office '97), and you
misspell Microsoft, the checker offers microfossil!

>-----Original Message-----
>From:  Ken Kirby [SMTP:[log in to unmask]]
>Sent:  Tuesday, January 28, 1997 10:04 PM
>To:    [log in to unmask]
>Subject:       Re: Tier Pricing
>
>Allow me to jump into this tier/user pricing bonfire:
>
>Tier pricing is unfair. This is like my buying a car stereo for my
>Volkswagen and being told by the saleman that if I decide one day to put
>the stereo in a Mercedes, I owe him more money. The reasoning (?) behind
>this would be that, since the Mercedes is much quieter, I gain more
>benefit from the stereo. Ridiculous.
>
>Now let's spray some more lighter fluid onto the fire:
>
>User-based pricing isn't fair either. This is like a car dearlership
>charging a family of four more for the same car than a couple with no
>children. And, advising the couple that, if one day they have a child,
>they must stop by the car dealership on the way home from the hospital
>to pay extra for the new "user". Ludicrous.
>
>Q. How many elephants can you get in a phone booth?
>A. It doesn't matter, the phone call still costs a quarter.
>
>The bottom line (from the customer's viewpiont): what deliverables do I
>receive from the software supplier for the money I paid? Here's what I
>get:
>
>1 copy of the software to run on
>1 machine, with
>1 set of manuals, and maybe
>1 support contract
>
>Of course, I expect to pay extra for:
>
>Extra copies to run on other machines
>Extra Manuals
>Increased levels of support
>
>That's all I or anyone else should have to pay for. Ever.
>No matter how big the machine is.
>No matter how many people use it.
>
>Period.
>
>--Ken Kirby
>  Vanderbilt University

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