Resurrect V/AT?
Ronald P. Hughes
ron at fct.UUCP
Tue Apr 18 05:13:49 AEST 1989
In article <197 at carpet.WLK.COM>, bill at carpet.WLK.COM (Bill Kennedy) writes:
> ... $30 for production and shipping, then how was Microport
> surviving at $199 for (retail) V/AT with dealer and OEM terms?
> A $19/copy margin isn't very healthy.
^^^^^^^^^^^^^^^^^^
You could be on to something here. Keep in mind Microport's current status.
I worked for Microport for almost a year. There was a little saying
that upper management was fond of repeating:
Each one we sell, we sell at a loss, but we make up for it in volume.
I left when I realized that there was more truth than humor in the above.
I also recall some theories about "buying market share", which I was not
quite able to comprehend.
My personal opinion is that UNIX will never be available for as low
a price as Microport's. If you find one that cheap and you decide
to buy it, I would not recommend their lifetime support contract.
Their life may not be as long as yours. ;-)
On the other hand, if you're thinking of embarking on such a venture
yourselves, you need to either ship much higher volume than Microport, or
charge a significantly higher price. (Or just cut back on the quality :-)
Good luck!
Ronald P. Hughes
Fall Creek Technologies
ron at fct.uu.net
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