RE:symbolics pricing strategy ...

[Richard Billington <buff%pravda@GATECH.EDU>]

  From: jka@vega.crd.ge.com (Jim Aragones)
  Subject: symbolics pricing strategy
  To: slug@Warbucks.AI.SRI.COM

  How come my Symbolics sales office is quoting me a list price for 16MB
  of NuBus memory for a MacIvory system at $9800, but calling National
  Semiconductor at 800/538-8510, they quoted me a list price of $6075 for
  the same memory?  I don't believe either price includes our corporate
  discount.  So, my second question is, is there any reason I should buy
  my memory from Symbolics?

  It's not like I haven't seen this before, but wouldn't Symbolics be
  better off telling their customers to go elsewhere to buy peripherals
  because they can't compete

Yes, if that's true. However (a) get the best prices you can on everything
you need that Symbolics is not the sole supplier on and then (b) tally it
up and ask Symbolics if they'd be interested in selling you a package that
meets or beats the price. You have to realize that Symbolics cannot outright
undersell someone who's supplying them - otherwise other users of (in this
case NSC NuBus memory) would go to Symbolics even if they had no other needs
from Symbolics. However, if you go to Symbolics and say "look I'm gonna
spend X + whatever the symbolics part costs, if you make me a deal for that
total you can have all my money" they'll probably go for it - cash flow is
great, you know, and they can get better prices on the peripherals (I'd guess),
it's just that they've got an agreement that they can't sell the pieces for
less than some amount - and that amount is going to be more than the original
source is selling it for. Uugh, this is an ugly explanation, hope it makes
sense. If all you're buying is more memory, then clearly go to NSC, 'cause
Symbolics can't undersell (or probably even match) that price - I guarantee
Symbolics and NSC have an agreement making that true.