Re: Tierred pricing (was Tiger tools...)

["Brad Stone" <brad@xxxxxxxxxxxx>]

On Tue, 30 Oct 2001 13:30:32 -0500
 Douglas Handy <dhandy1@bellsouth.net> wrote:
> Brad,
>
> >1.  Besides the fact that it's the "norm", what reasons
> are
> >given for the need to price software on a tierred level?
>
> To make it affordable to a wider range of customers.  If
> priced uniformly, the
> averaged cost would be cost prohibitive for the small
> guy.

Ah yes... but this could also be looked at as "To charge the
guy with the bigger machine more money, becaues they must
have more to spend."

I expected the answer you gave.  :)  I don't buy it, though.
It's the answer you would get from the seller, not the
buyer.  Which leads to the fact that iSeries software is
overpriced to begin with.

>
> >2.  Does the software for a larger machine require more
> >coding, support etc. to make up for the difference?
>
> Depends on the product, but it is not unreasonable to
> expect more support issues
> with 1000 concurrent users than with 10.

Yes, I can see this, but we're talking processor level, not
users.  User based tierred pricing is the lesser of the two
evils for the fact you pointed out, but it's not sold as
such in the iSeries world.  It's based on processor level.

>
> >3.  What other industries tier their pricing for the
> SAME
> >product?  (ie gas costs the same for a ferrari and a
> tempo).
>
> Try government taxation. :)  If the business makes more
> money, Uncle Scam wants
> a bigger share.  Same with King Louie.

Well, I'll give you that one, but the goverment is screwed
up more than IBM is.   :)

>
> BTW, gas *does* cost more for my Northstar engine than
> for a Ford Tempo...

Different octane is different product.  And you don't NEED
92 octane for your Northstar.  I doubt it's compression
level requires it, no matter what your Caddi dealer told
you.  :)

Bradley V. Stone
BVS.Tools
www.bvstools.com