Re: Pricing strategies

Dave Paulsen (dave@athene.past.com)
Thu, 8 Dec 1994 08:34:55 -0800

In reply to Rod Rice:
>
>I am a small computer systems/components/software/training dealer,
>considering offering selected products for sale on the net. Are my
>prices going to beat those of Gateway, Zeos, and company? Sometimes I
[snip]
>my business. My product usually has higher quality and a better
warranty
>than those of the catalog companies. I guess the secret is to make that
>differentiation very clear...
>
I agree that's the hardest part. Trying to get the concept of value
across to people, especially with a text only mail message, let alone
on a web page, is a challange. You need to find a way to let people
know right away that you have a product that is worth buying.

When I was building and selling systems, I finally got to the point
where I would tell prospective customers that they could beat my prices
elsewhere right up front, and if they were only interested in saving a
nickle, not to waste my time. I also started to charge for writing
specs and designing systems, and when I realized I was making more doing
that than on hardware sales, I quite selling systems and have only been
doing consulting ever since. I figure Gateway can have the bottom
feeders, they get what they pay for.

_dave_(seemingly obligatory and definitely bandwidth wasting .sig)