Re: Service Bureau Pricing

From: Greg Pettengill (greg_p@indirect.com)
Date: Wed Aug 14 1996 - 14:30:18 EEST


David K. Leigh wrote:
>
> Well, this is either good news or bad news, depending on how you
> take it. I've noticed a trend that there are a few service bureaus
> "dumping" their products on the market. An example of pricing:
(snip)

I think you may be wrong in caricaturing this instance as "dumping".
Rather this might be a "loss leader" being offered by someone trying
to break into the market.

> Now, if you were the customer, I guess this is great news. But, the
> long term effect is that competition will disappear when you get
> prices that are a fraction of the "cost" of materials.

I think you mean the cost of production rather than "the "cost" of
materials." It would seem improbable that someone could monopolize
the market in this manner.

> Anyway, I don't mean to be a bear about this, because for the most
> part, service bureau pricing is fairly standard and competitive. I
> would really like to hear some discussion on what y'all think about
> this. I personally think this is bad for the industry in the long
> haul.

I see this as an isolated incidence and has no effect on the industry
as a whole.

Best Regards

-- 
Greg Pettengill
greg_p@indirect.com

I do not know if it is true, but I imagine that there are scientists who, by following the paths of the so-called "cold" intellect -possibly without being aware of it- are plumbing the depths of a mystery rather than searching for the solution to a problem... M.C. Escher http://www.indirect.com/www/greg_p/index.html



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