Re: From Print to Electrons

chrisv@nipltd.com ((chrisv@nipltd.com))
Fri, 20 Oct 1995 08:36:16 -0700

Leo, we have a customer that supplies high value hardcopy newsletters to the
pharmaceutical sector. When customers demand electronic versions, they
agree that the starting point for costing an electronic service will be the
equivalent cost of the total current customer expenditure on hardcopy
sources. Further, they agree a pragmatic figure for the number of users
(i.e. the original number of subscribers plus a figure for other readers
that would be on distribution lists). The resulting cost per user becomes
the base line for reviewing any future changes in usage patterns and
provides a basis for potential changes in pricing the service. In this way
the supplier is doing their best to prevent serious revenue loss through
substitution, and at the same time are developing a new more solid basis for
their customer relationships (under the new pricing regime there is more
scope to be in regular contact with the customer to review usage patterns).

Clearly they are assuming that their customers have integrity, which isn't
unreasonable given that they have been doing business over a period of time,
and after all, it is in the interest of both parties to reach an agreement!

Hope this helps

Chris Valle
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Chris Valle Email: chrisv@nipltd.com
New Information Paradigms Work Phone: +44 1344 778783
------------- When you know yourself you know all minds. -------------

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