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

[Brad Jensen <brad@xxxxxxxxxxx>]

rob@dekko.com wrote:
>
> But if they need to gouge the larger machines in order to subsidize the
> smaller customers then they must be losing money on the smaller customers.
> If so, then why market to them at all?
>
> Rob Berendt

I hate to go back to the income tax analogy, but that's exactly
what heppens there also. You market to the small guys because
there are a lot of them, and even if they aren't very
profitable, they keep the cash machine going and pay the rent
whil you hunt down and kill the big game to make a profit. You
would have to charge the big customers even more , if you didn't
have the little customers to spread your marketing costs over.
Some of the small ones also become big ones later, so you make
them a customer when it is easier and cheaper to do so, and you
are already there entrenched when they become big.

Of course, I'm too stupid to do this, which is why I don't make
a big profit, but hey I've got good software!

--
Brad Jensen brad@elstore.com
President
Electronic Storage Corporation Tulsa OK USA
918-664-7276

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