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Date:      Thu, 1 Aug 1996 15:40:39 -0500 (CDT)
From:      Joe Greco <jgreco@brasil.moneng.mei.com>
To:        rgrimes@GndRsh.aac.dev.com (Rodney W. Grimes)
Cc:        jgreco@brasil.moneng.mei.com, ulf@lamb.net, dennis@etinc.com, freebsd-isp@freebsd.org
Subject:   Re: Question about Cisco 2503i price
Message-ID:  <199608012040.PAA26468@brasil.moneng.mei.com>
In-Reply-To: <199608011929.MAA01978@GndRsh.aac.dev.com> from "Rodney W. Grimes" at Aug 1, 96 12:29:32 pm

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> > What!?  My _nice_ Enlight cases cost $65.  I can get tin cans for $35.
> 
> And the power supply in your Enlight cases has an MTBF of approx 5,000
> hours, or about 6 months continous use.  The one in the $35.00 tin cans
> are about the same.  The failure mode is usually the fan bushing goes
> out (no one selling power supplies for <$40.00 uses a ball bearing fan.)

Actually the supplier apparently buys the PS's separately ...

And I haven't had a fan die on a dozen of these in a year.  Small sample
size, I know.

Incidental:  I do believe in installing the second fan kits.  :-)

However, if you have a source for ball bearing fans of the right size, I
would gladly be installing them.

> You also appear to be buying at very very close to wholesale pricing...

Yeaaaaah, so?  Any ISP with a quarter of a brain can strike an attractive
deal with a PC shop to knock 5% off the current street price (and street
price != != != MSRP!!  Don't try to tell me that most places try to sell 
for the MSRP because I'd have to tell you you're wrong).  In reality it's 
easy to find a PC shop that has street prices 10% higher than Merisel or 
Ingram.

> ...
> > > Cogent PCI ethermet $80
> > 
> > Kingston PCI Ethernet $55
> 
> I show that to be the wholesale price for the KNE40T (TP only), I
> can see $56.00 retail if you buy in 20 packs at a time.
> 
> Rod... who's always wondering how these ``end users'' seem to come up
> with retail prices below wholesale... :-) :-) :-)

Well, Rod...  in my opinion, it's because a larger shop can get by on
smaller margins.  I am guessing that you are a relatively small shop and
your customers buy from you at a higher price because they get your
fantastic service and wealth of knowledge to back up what you're selling.
That has a definite, absolute value.  :-)  That's why I send folks to you
as often as I can.

However..

The corner PC shop (that I avoid like the plague) here hires 17 year old
kids to put together PC's, and will buy cards at quantity discount and pass
the savings on to the customer.  They would be buying your KNE40T's in lots
of 100 and selling them at $54.00 retail each probably.

Of course you get what you pay for:  endless grief if you need to RMA
something, and incompetence if you let them build your PC.  And they have 
no clue that the KNE40T is based on a DEC21040, whereas you could probably
write a device driver for one if you wanted to.

Please remember that I am not saying ANYTHING bad about smaller shops who
sell for a higher price because I am a firm believer that there is value 
to be had in it.  However, when comparing a FreeBSD to a discounted Cisco,
I'm certainly not going to compare premium PC prices to a discounted Cisco 
price.

Got a source for BB fans, PC sized?

Thanks,

... JG



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