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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?


To: Jack Zahran who wrote (15119)4/20/1998 12:09:00 PM
From: James Strauss  Respond to of 31646
 
A Picture Is Worth 1000 Words...

quicken.com

Jim



To: Jack Zahran who wrote (15119)4/20/1998 1:29:00 PM
From: Rick Bullotta  Respond to of 31646
 
Jack:

The interesting phenomenon I've noticed in my travels in the industry is that while purchasing types often negotiate to the end on "product" pricing, they're often more receptive to paying published rates for services...and don't be too upset if TAVA or a software vendor discounts a bit to accelerate a deal, since it is still a whole big pile of high margin money! <g> And when you weigh in the future potential for remediation and other automation projects, the key is to close the deal and get on the "inside".

I think that the relatively high per-unit margins are the reason software pricing is a bit different than hard goods or even services, since there is relatively low cost of goods versus the list price...thus a lot of "perceived" negotiating room.

Don't know much about how the West Chester office is doing these days in terms of volume or backlog (I worked there for 7 years when it was still All-Control Systems, reported to Kevin Fallon)...the guys I know that are still there seem pretty happy & excited about the prospects for the future, though.

"Conservatively bullish", <g>

- Rick



To: Jack Zahran who wrote (15119)4/20/1998 2:16:00 PM
From: JDN  Respond to of 31646
 
Dear Jack: I suspect the negotiations on price are a give and take situation. I would think that TAVA would be generous if they were ASSURED of future business beyone Y2K. JDN