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Technology Stocks : AUTOHOME, Inc
ATHM 23.10-1.5%Dec 3 3:59 PM EST
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To: Jing Qian who wrote (13133)7/30/1999 9:40:00 PM
From: ahhaha  Read Replies (1) of 29970
 
Engineer, you're right. the consortium should lower prices.

I applied my own criterion and made a share case for lowering prices. It's valid. It chokes the competition!

They should do it immediately. What rate depends upon the future projected cost to maintain the system. The basic service rate is like the same with telephone service. The $20/mo. rate is a good psychological point to start and even though in the long run the instantaneous cost to maintain may be $5/mo they can sit on that $20.

Aside from whatever comes from share increase the advertising power of it and the political weight of cheap makes the revenue enhancement net of costs superfluous. You could say that it is impact advertising and the impact could sway communities to forego quibbling about political correctness. You definitely would see fewer signatures on petitions.
This strategy is similar to what Standard Oil did in 1903 to stabilize oil production. They cut prices 30% across the board to drive out the thousand small inefficent producers who were making the business impossible for everyone. The predictable response from the public and then from Congress was "smash the monopolizing oil companies", so this can be treacherous.
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