Re: USR Lowers Pricing

Sherwood Pekelo (spekelo@iav.com)
Fri, 4 Apr 1997 01:01:12 -1000 (HST)

On Thu, 3 Apr 1997, Damien T. wrote:

> 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" ...

Actually, I'm I look back into my PM3 box.. the rack mounts are there..did
I get a bonus? 8)

--
Aloha,

Sherwood