To: Jeff Vayda who wrote (4457 ) 5/4/1999 6:43:00 PM From: Maurice Winn Respond to of 29987
Jeff, I agree with multiple service plans. I've been a salesman and in marketing [oil industry] for a long time and I'm well aware that people don't fit a one-size-fits-all marketing plan. So the current-price-is theme would be an overlay of the more standard price schemes which fit some types of human nature [there is a tendency to talk of human nature as though we all have the same thing - we don't, we are each unique and variable as time goes by = marketing mayhem]. You are also quite right that most people don't want to bid on the Web for a handset. They'll want to walk into a shop, try it out and buy if it looks the right thing. But heaps of people [see Datek and Dell growth rates] are happy to trade on the Web and anyone who misses that boat will be left floundering in a very big ocean. Again, I mean multiple marketing modes, but the main one would be via the Web, which shops could access for their walk-in customers. The very, very big problem I have with giveaway handsets is that demand would exceed supply and there would be a huge waiting list, which is a marketing nightmare and must not happen. Low volume customers would get handsets and leave them in their car, unused [unless some huge monthly fee was charged, which would be a rent to buy scheme rather than a 'free' scheme and that would be fine as one of the options for selling handsets]. The important point is that Qualcomm, Telital and Ericy need to be given a big incentive to forget about their other handset production lines and switch everything over to Globalstar. Incentive in this case means $$$$. The company which is slower, would sell fewer handsets, so they will compete flat out before handset prices drop in a couple of years as the constellation fills and minute prices rise. Yes, there is also a training program for potential subscribers needed so that they see what Globalstar can do for them, how to buy and most importantly "GET YOUR MONEY OUT NOW BECAUSE THESE HANDSETS ARE SELLING FLAT OUT AND THE MINUTES ARE FREE FOR THE FIRST 2 YEARS FOR THE FIRST 100,000 SUBSCRIBERS". Sure the street price for handsets will be $5000 - watch Q! Ericy and Telital scramble like mad when they realize how much money they'll make. The service providers will have to compete for handsets and minutes. If they offer their customers a rotten $1.50 per minute, the handsets will all go to the service provider who offers their customers a good regional pricing deal for minutes. Have to go [being kicked off the puter by Tarken who wasn't impressed that I inadvertently contaminated his name with weird pricing theories and since he is a GSTRF stockholder, didn't think I should say they should be shorted!] Maurice