#WordPerfect Library
19-May-88 00:15:01
Sb: #125227-#WordPerfect Library
Fm: Don Curtis/SYSOP 76703,4321
To: Henry Colonna 74726,3216
Henry,
The company is CompuAdd, 12303-G Technology Bv., Austin, TX 78727
Now, why do I object to high SRP in relation to wholesale price. I
thought I had gone over this with you earlier, but if I didn't, let me
re-state my objections:
1. Let's use numbers…WP wholesales for $160 yet has a SRP of $395,
that means that a dealer trying to sell it at SRP gets a 250% markup.
Profits like that are unrealistic.
2. One of the biggest gripes from the consumer is that software is
priced too high. The cost of WP certainly reinforces that idea.
3. Most software is sold for near SRP, perhaps a moderate markdown.
Even with the normal markdowns…the supposed cost of WP (or any other
product priced like that) is out of the reach of many potential buyers…me
included. I wouldn't even consider buying it due to the normal selling price.
4. If WP really thought it was worth $395, why didn't the wholesale
it for $320…more in line with normal markups?
5. Wide variance in SRP vs wholesale price allows mail order houses
to severely undercut full service dealers thus discouraging sales thru
dealers…which is where the main emphasis should be.
6. The idea that high cost (as shown by SRP) has some realtionship to
worth, quality or usefullness is another bit of corporate mentality that is
completely wrong.
7. It's not traditional in the software industry.
8. etc.
Don