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To: Dave B who wrote (24502)	7/11/1999 4:38:00 PM
From: Skeeter Bug	Read Replies (3) \| Respond to of 93625

>>Since you can get net access for free (netzero.com), you're paying $960 over 4 years for a $500 computer. That's a leasing deal with an approximate annual interest rate of 37%. Just buy a $500 computer and use netzero.com. Or, better yet, I'd be happy to sell you a $500 computer for 48 payments of $17.50 a month (and then you can use netzero.com for access). My interest rate is just under 30%. Where should I send the contract?<< db, this analysis is not complete. 1. everyone can't use netzero - their system would crumble. 2. i'd also venture an educated guess that netzero has forced advertising. my service never did. not a big deal? ask those who left si over just this issue. let's use reality ;-) the avg person is paying about $17.50 (this seems low, but i'm not manipulating #s nor comparing apples to oranges - nor am i extrapolating the absurd to the macro level) for net access now. now the computer w/b free to the end user. the question is whether it w/b free to the seller. the isps have to buy the pc. it isn't free to them. this indicates a supply / demand imbalance in favor of supply for the isp industry. the computer companies? they need a network and have to pay for that. extra expense. is it $17.50 a month? i don't know. but it is something. again, a supply side supply/demand imbalance in the pc market. why do prices get reduced in pcs? it is total poppycock that prices get reduced just b/c prices for componenets or efficiencies improve. my job is to improve efficiencies and, given the choice, my company would keep the savings from these sources and tack it onto the bottom line. it is pure supply and demand. there are x boxes to sell, what price can we charge to sell them all - or at least those we don't want to store in inventory. efficiencies and component reduction often lead to increased supply (and therefore, lower prices), but not of necessity. both pc makers and isps are reducing the total cost of ownership to get their bpxes and servises moving. why? they aren't moving now - at least not the way they want. will 12-20% extra cost get everyone frothy? nope. maybe a few. very few.

To: Dave B who wrote (24502)	7/12/1999 4:28:00 PM
From: MulhollandDrive	Read Replies (4) \| Respond to of 93625

Hi Dave, Do you know anyone planning to attend Siggraph? Any thread participants? also:: <<Now a pet peeve: I believe that Finance should be a required course in high school for ninth graders. Our nation is absolutely a bunch of idiots when it comes to financial analysis and financial responsibility.<< Absolutely....turning into a nation of net check earners and "what's my monthly payment?" consumers. Sad..... these are the folks that will never achieve wealth and end up relying on SS (hah!) for their retirements. bp