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Technology Stocks : METRICOM - Wireless Data Communications -- Ignore unavailable to you. Want to Upgrade?


To: tensforme who wrote (2859)12/6/2000 8:31:05 AM
From: rrufff  Respond to of 3376
 
MCOM makes $30 no matter what the reseller prices so this would be good news for MCOM. I always thought they were basically targeting the business market, but at $50, it's directly competitive with home adsl.



To: tensforme who wrote (2859)12/6/2000 10:09:43 AM
From: John Curtis  Respond to of 3376
 
Tens: WCOM will be selling Ricochet at $49.99 after Jan 1st. Not sure why they need to price it this low, since other resellers are between $70.00 and $90.00....

That could be the whole point. That is, offer a better product at a cheaper price, thus carving out a large slice of the pie as quickly as possible and all while the "getting" is good. Then let your competition react accordingly? ;-) This could be helped by their demographics, which may have indicated that a ~$50 price is a better positioning mechanism (weren't folks on this and other threads bitching all along about the relatively high price being quoted? Maybe WCOM determined the same thing.)? After all, WCOM's long experience with such as AOL have probably given them quite an education into the price elasticity aspects of providing internet connectivity.

All imho, of course.

John~