Path: utzoo!attcan!uunet!cs.utexas.edu!tut.cis.ohio-state.edu!ucbvax!UCONNVM.BITNET!SEWALL From: SEWALL@UCONNVM.BITNET (Murph Sewall) Newsgroups: comp.sys.apple Subject: Re: New GS ROMs Message-ID: <8908180211.aa02226@SMOKE.BRL.MIL> Date: 18 Aug 89 06:54:30 GMT References:Sender: daemon@ucbvax.BERKELEY.EDU Organization: The Internet Lines: 45 >How about ? > >Do you want rom upgrade a price that reflects apples true cost? > [ ] Yes [ ] No A price which reflects "true cost" would require predicting the net present value of future sales at that price. That value depends on how many upgrades are sold which in turn will be inversely related to the price. That's a problem which *can* be solved in theory (subject to some fairly unrealisitic assumptions), but is nearly impossible to calculate in practice. Cost (after the fact of development) isn't the issue in setting a price. The price should reflect what the product is worth. Profit is a consequence of figuring out how to produce something at a cost that turns out to be less than it's worth (Henry Ford often was an inept marketer, but he had one truly great inspiration when he recognized that if he could produce cars for less than $500 an awful lot of people would find them worth at least that much!). It follows from this precept that an upgrade is worth more to some than to others so the proper price should be higher today than in the future (a premium charged those who MUST have the product NOW compared to those with the patience to wait until the price declines). It strikes me as a tad peculiar that Apple would argue they aren't offering an upgrade because it wouldn't be economical. How much in dollars is that? Why not make up a modest number of kits and offer them for sale at whatever price is necessary to justify going to the trouble? Demand is not likely to be zero at any price lower than the price of one of the new production models. Does that new IIgs have an identity (if I go to my Apple dealer next month or whenever, how do I tell he has the new one and not one of the older ones that's been on the shelf for awhile -- without being a techie who can tell which chip(s) are ROM and how many there are)? Nowhere in that press release did I see reference to IIgs+, IIgse, or some such ;-) /s Murph I bought the latest computer; it came fully loaded. It was guaranteed for 90 days, but in 30 was outmoded! - The Wall Street Journal passed along by Big Red Computer's SCARLETT FAX it to me at: 1-203-486-5246