[rescue] Sun / Linux LX50

[Lionel Peterson]

--- "Patrick Giagnocavo +1.717.201.3366" <patrick at zill.net> wrote:
> If they sold 30 a day, that is 10,000 a year, at say average price of
> $2400 each = $24 million?  That would pay for a few people...

Well, don't forget to factor in *all* costs:

R&D - Minimal, but it costs money

Mfg - even if it is bolt together, it may consume Sun Mfg. space that
could be making other hardware

Dist - these things need to be shipped hither & zither (from plant to
Dist. facility to customer)

Support - must keep spares availabel for 4 hour turn-around for some
clients, stock spare parts for *years* after product dropped (req. for
thisngs like Fed Gov't sales I think)

Discounts - the larger customers for Sun hardware get decent discounts,
and the price has to be inflated to accomodate that

Commisions - these will most likely sell through salesmen to corp.
accounts, and those salesmen aren't cheap

Also, there is the cycle that goes like this - "at $1500, we will only
sel X. If we only sell X, then the price has to be $1800. At $1800 we
will only sell X-Y units. If we only sell X-Y units, then the price has
to be $2000..." and on it goes till someone says "No matter what. we
will sell N pieces, and price it at $2800. Period!"

Just a few thoughts on the wonderful world of hardware sales...

Lionel

=====
Lionel

"Nothing would please me more than being able to hire ten
programmers and deluge the hobby market with good software"
Bill Gates, in "An OpenLetter to Hobbyists" dated February 3, 1976
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