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Date:      Thu, 17 Apr 1997 01:34:05 -0400
From:      Mike Tancsa <mike@sentex.net>
To:        freebsd-hackers@freebsd.org
Cc:        jkh@time.cdrom.com
Subject:   Re: Price of FreeBSD (was On Holy Wars...) 
Message-ID:  <3.0.1.32.19970417013405.00ba9290@sentex.net>
In-Reply-To: <4146.861250482@time.cdrom.com>
References:  <Your message of "Wed, 16 Apr 1997 21:15:05 CDT."             <199704170215.VAA15005@argus>

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At 09:14 PM 4/16/97 -0700, Jordan K. Hubbard wrote:
>> i'll add another few items to my list from last night...
>> 
>> 	1). chop the price in half to $19.95.
>
>When he
>raised his BSD/OS prices, despite all the public outcry about what
>evil nasty people they were for doing so, unit sales went UP (as,
>obviously, did their profit margins).  He was recently telling me that
>even he didn't believe it and told the marketing department that they
>were out of their trees if they thought increasing the price would
>increase sales, but they convinced him to try it anyway and and lo and
>behold, they were right and he was wrong!

Although I agree price and sales dont always inversely correlate, there are
other mitigating factors as well: i.e. the general increase of the people
and companies being on the Internet.  I suspect that (and the fact that
BSD/OS an excellent product) had more to do with BSD sales rather than just
people's perception of quality correlating to price.  However, I am sure
some market segments would be more prone to this than others.  A lot of our
really big corp customers who look to expand their net presence ask us for
recommendations.  When we tell them about FreeBSD they look at us funny
when we tell them its free... Typically, their response is "You mean I am
going to trust my million dollar a week business to some free software ? No
way! Whats the number for SUN again ?"  I suppose however, if we told them
FreeBSD was in fact $2000, plus another $1000 a year for fixes, they would
probably seriously consider it.  However, our smaller business customers
are quite open to it.  To them, what matters is that it works, is
reasonably priced, and is secure.  For them, shaving $20 off the price is
not an issue.


	---Mike
**********************************************************************
Mike Tancsa  (mike@sentex.net)           * To do is to be  -- Nietzsche
Sentex Communications Corp,              * To be is to do  -- Sartre 
Cambridge, Ontario                       * Do be do be do  -- Sinatra
(http://www.sentex.net/~mdtancsa)        *



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