#Echos of Ayn Rand
16-Feb-95 14:01:55
Sb: #152828-#Echos of Ayn Rand
Fm: William D. Patterson 75402,1516
To: Tim Wilson [Crestline] 76432,1122
Tim, I haven't the vaguest idea what your product is about, but I have some
observations on the implications of your pricing proposal.
1. Your pricing structure assumes that you know my business. It has to. If
you are to police your licensing like you are attempting to, then you MUST make
value judgements about all the licensees, even if the judgement you are making
is to accept our characterization of our business. And if your judgement
differs from mine (and you challenge me), the unstated implication is that I'm
a liar, or cheat, or ignorant of my own business. I would resent these
implications, even subconciously. I would be motivated to find another
supplier, even home-grow one, in order to avoid dealing with one who makes me
feel uneasy. I have two good friends in entirely different lines of work who
are feeling *dissed* by their suppliers for reasons similar to this.
2. How can you tell who has the greatest ability to pay? A supermarket may
appear to have bundles of cash lying about, after all, look at all the food
they throw out. Yet, their margins are only about 1%. Ford may make $5
billion profit, but they are required to fork that over to their shareholders.
What is ILM's ability to pay? How can YOU tell?
3. Rather than engaging in such amphigory about *use permits*, which may not
be legally enforceable (what is 'limited commercial' after all) the only way to
retrieve your investment would be to make the best products priced at the
highest level. That way, only those whose apps require the highest quality
would be forced to crowbar out the bucks.
4. If nobody buys at the highest level, then the market is signalling you to
either lower your price, or lower the quality. After all, whereas I would
truly love a PC with quad Pentium-100s and 512 Mb of RAM, the fact is that I
really don't need it, my work is satisfactorily done using lower performance
equipment. Remember how most engineering is done, anyway:
Calculate to the angstrom.
Specify to the micron.
Measure with a micrometer.
Mark with a crayon.
Cut with a chainsaw.
Putty and shim to fit.
Paint to match.