Re: USR Lowers Pricing

Damien T. (damient@livewire.comsec.net)
Thu, 3 Apr 1997 21:14:35 -0800 (PST)

At 04:26 PM 4/3/97 -1000, Sherwood wrote:
>Is this under cutting of prices considered Unfair trade? What is the cost
>to USR for manufacturing a TC? I've heard that Livingston runs on a tight
>margin to ISPs, but still they have a positive markup...unless USR was
>seriously gouging on their pricing ( heh, whatever the market would bear I
>guess)

Below cost, I suppose it would be. I think it's the VARs who operate on the
tight margin. If you look at Livingston prices, their growth, etc., and
guestimate the cost of the products, the company must be making 75-125%
margin on everything. $70 for a rack shelf?! <g>! ($10-15 for fabrication
and powdercoat / paint). Guess the real question is how you compute "cost" ...

Damien