CompuServe Thread

You know, it's funny you should bring this up. We got a batch of WordPerfects in at the store, and they SRP had been marked down to $329, with a little sticker pasted over the old SRP on the box! Now, to address your complaints the way I see them. 1) I don't know of a single dealer anywhere who's tried to sell the product for SRP. Again, according to OUR standard way of marking up software, it's priced at $259.95. THe highest it should go, based on non-discounted markups of other software, is $299. 2) The cost of WP certainly does NOT justify in my mind any way whatsoever that software is too-high-priced. First of all, WP is worth every cent, and second of all, most of the consumers I know of the product feel the same way about it. Third, most of those who are ignorant of the structure of the software business and make that claim are talking about games. Finally, there seems to be that "break even point" wherea piece of software goes from being "too expensive" to being "an elite piece of professional software". Can you imagine TextCraft at $149? Or Scribble at $189? I think WP crosses that barrier with their pricing. Very few people seem to "put it down" because of the price, but "revere" it. This is neither right nor wrong – it just shows that their marketing strategy is working. 3) The normal selling price ISN'T the SRP. If you wouldn't consider buying it because of its price, then you don't need a real word processor. It has no competition – everything else is easily mickey-mouse. Now, if there were a $75 word processor that had its features, I'd agree. But there isn't. If there's a $75 word processor that fits -your- needs, then you don't need WP and have no right to complain. 🙂 4) The Amiga and ST markets can't bear that price range. They didn't want to anger the IBM market. That's the basic philosophy. (IBM market is somewhere near 25 times ST and Amiga combined) 5) Perhaps. That doesn't seem to be our experience, tho, because we get free copies to demo, and full color brochures. Alot of people DO buy from us and not mail order. /exit

6) You're right. You know it. I know it. But most of the buying mentality doesn't. THeir strategy works. 7) No it's not traditional in the software industry. SO WHAT.

WP wholesaling for $160 while retailing for ~$400 is the normal percentage for all software. Wholesale price is typically 40% to 50% of sugg. retail. Remember, tho, that wholesale price is the price to distributors (or _very_ large retail stores) who typically buy in large lots (100s) to get this discount. They then resell to retailers for typically 60% of retail. Thus the distributors get approx 20% of retail per package for the trouble of warehousing numerous titles, taking small orders, billing to a large number of (sometimes difficult to collect from) clients, etc. Retailers then get a package for 60% of retail and when they sell it they make 40% of retail. For this they handle salespersons salaries, stock many (often slow moving) titles, provide support (at least some do), pay rent on their building, demonstrate programs, buy hardware to demonstrate on, etc. If you wan't to get a copy of WP (or anything) for 40% of retail just call the company–but be prepared to buy in distributor quantities. There is logic behind this. James Bayless New Horizons Software, Inc. (Never thought you'd see me defending WP, did you?)