Msg: 4591 *Conference*
08-10-93 09:03:22
From: RICHARD HANSON
To : JAMES TOTH
Subj: REPLY TO MSG #4587 (THE GAME)
---- I figured that you would probably reason it out that way. Sorry, but $10 for a ROM upgrade is not feasible. $3 for shipping, is. You're looking at this from the product level rather then the company level. Each product carries a margional burden of the companies overhead--still about $3,000/mo +/-. Each product's price was initially developped both bottom-up and top-down (a best guess) based on reasonable limits for breakeven on an annual basis. 1990 - 1992 tracking records indicate that most products meet or exceed breakeven; thank God! Some do not... not good. The least I would accept for a ROM upgrade is $25 + $3 shipping. I can not afford to lose money on a sale of a major item. And you can't look backwards to previous sales for margin on a current sale. Ten bucks ain't enough to breakeven on a ROM upgrade to a previous disk purchase so that's not going to happen. Furthermore, what does $25 mean to you in the scheem of life? You spent more than $25 on food last week. And the food is gone! Right? The ROM, on the other hand, would still be serving your needs week after week. We're talking small dollars, here, from your point of view. From my point of view there's this $3,000/mo +/- nut to crack each month. -Rick-