To: David who wrote (15843 ) 11/22/1999 10:00:00 PM From: David Read Replies (1) | Respond to of 26039
Pricing the new software . . . BioSafe and BioShield, with many fancy new features, are being bundled together and list priced at $69. Together with a CPQ DFR-300/BioLogon 2.0 combination set to go for about $60, you get the full software suite and the hardware for $129. Don't we seem to be going in the wrong pricing direction here? You can raise the price when you totally control the market and are asking for the Justice Department to sue you (see, e.g., United States v. Microsoft ). It's not the way you should be pricing your goods when you are trying to get a mass market deployment. Yes, I know that IDX is not raising prices for the same product, but offering more product at the higher ($129 v. $99) price . . . but that misses the point when (a) you are looking to maximize sales and market presence; (b) you have a functional product at $99 without the add-ons; (c) essentially all the software costs have now been incurred; and (d) you desperately need to pull away from a crowded field in any way you can. How is IDX supposed to sell the $129 deal? Oh, I know you could be up and running for $99, but for $30 more you could be up and running with cuter software and give us really nice profits! I don't think so. Let's see IDX price the extra software at $19 . . . leading to this sales pitch: "We can now offer you upgraded hardware, upgraded BioLogon software, and both BioShield and BioSafe for $20 LESS than before! The combined package is only $79, and you can't find anything like it elsewhere for twice the price! Which pitch gives IDX more profits and control of the market? Isn't it obvious? Why is the BioSafe/BioShield priced higher than the FIT hardware/software package is likely to be priced? I'd like to see the market survey IDX did to come up with that decision . . . or I'd like to see any evidence of marketing professionalism in that decision. Selling $69 software packages to stockholders doesn't cut it.