Re: RPG is Dead? Say it aint so!

I agree, but does this directly apply to midrange computers? The last
company I was at was expanding the number of servers, but this company
consolidated several on to one system. As the system got better we needed
more PC's but less midrange systems. Reliability is great for us, but can
be a bad thing for sales. Why buy one when this one works just fine. We
will need one eventually, but can go longer between hardware upgrades
because it is such a good system.




Scott Klement <rpg400-l@xxxxxxxxxxxxxxxx>
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06/21/2007 03:44 PM
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Re: RPG is Dead? Say it aint so!






Booth Martin wrote:

A comparison: Lets say that every 18 months for 40+ years the cost of
producing socks falls by 50%. At some point everyone just has too many
socks, regardless of what the fashion mavens say & do. At that point
socks sales dollar volumes would have to fall.

You're assuming that the cost of producing socks remains the same, but
the cost of selling them is dropping. What if (due to improvements in
technology) the actual cost of producing socks has gone down, and you've
simply passed that savings on to the consumer? Surely if your profit
margin remains the same, you won't lose money?

Also, who do you know that can wear the same pair of socks for 40 years
without them wearing out and needing replacement?

Computers are designed to last perhaps 3 or 4 years. After that time,
they become obsolete and you need to buy new ones. (Especially PCs.)
Therefore, the demand won't dissipate when everyone has one.

Plus, the demand does continue to grow. Years ago, you might've had
only one computer for the whole family to share, today each child has
his/her own. Same in business.. more and more employees need
computers. At least in our organization, as older people retire and
younger people take their jobs, I find more and more of the company's
employees "need" to have computers to do their work. (Obviously they
don't NEED it if they're predecessor didn't have one, but they say it
makes their job easier, and the company is therefore willing to spend
the money.)