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Technology Stocks : Vantive Corporation -- Ignore unavailable to you. Want to Upgrade?

To: David R. Doerr who wrote (2446)	8/26/1998 6:40:00 PM
From: Melissa McAuliffe	Respond to of 3033

I agree with TD about this price cutting, if in fact it's happpening. SEBL would have no reason to cut prices on SFA. When you have a superior product it can command a higher price. Good example of this....PSFT in the higher ed market....their price is much higher than the competition...but they don't have to cut it significantly to win business. Re: the cis space. Maybe makes sense to cut some but not so sure about that even. I doubt anything outrageous is going on. Maybe the people you spoke to were talking about that 50% deal they had last quarter for existing customers. One interesting point I want to make----most companies don't make their decision based on price. And most often if you're losing anyway cutting the price isn't going to win it for you. There are always extenuating circumstances so you can't really make a generalization based on what you hear from a few people. Good example....who knows....maybe vntv paid csco to license their software.<g> Obviously that's not true but let's say they gave them a 70% discount. Doesn't mean that vntv is giving 70% discounts everywhere. Going back to the sebl discounting prices more than usual (whatever usual is) issue---I can't understand why they'd even have to think about doing this. They're in a position of strength right now. It's usually the weaker vendors who think cutting the price will get them the business. Discounting is common practice. Maybe the person(s) you spoke with are new vntv reps or new to the industry or whatever and just don't undersand this. But if you have anything more specific let us know.