[net.micro.mac] mathematics of support pricing

mazlack@ernie.berkeley.edu (Lawrence J. Mazlack) (04/08/86)

>
>If you think *thats* bad, try the mathematics of buying a Macintosh XL
>for $3999, then trading it for a Mac+ for $1499, not counting the
>$600 512K memory board which doesn't have any trade-in value at all.
>Not that we have that much choice, the XL is too slow and has no sound
>generation. The question for the day is "How much did you pay for your Mac+??"
>   Kelton Flinn

The analogy that several people posted to me is:

How would you like to buy a GM car (a complete Lisa aka XL costed about that
much: Lisa + memory board + software + printer) and then be told six months
later by GM that (a) they have decided that making your car was a mistake,
(b) they will do their best to ignore its existence, and (c) if you want
a new, smaller one you can give them another $1499.

In point of fact auto makers do not do this. When a model is abandoned, they
usually establish a 10-15 year supply of parts for it.  Ditto when an auto
mfg goes out of business.  It is still possible to buy Kaiser and Studebaker
parts.

As it turns out, you can also get service and parts for IBM 1401s, IBM 1620s,
and IBM 704s (!!!) all of which are still in service, 20+ years after last
manufacture and 15+ years after obselence. Why someone would want to do this is
besides the point - but I have seen all of these critters still running in 
the last four years. (Note: being hacker orientated, I do not, myself, run 
on IBM equipment.) I have also seen a bunch of early PDP stuff still running -
however, most of the PDP stuff is get going by university personnel - but,
I guess, that DEC would do it for you as well.

Larry Mazlack
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chuq@sun.uucp (Chuq Von Rospach) (04/09/86)

> How would you like to buy a GM car (a complete Lisa aka XL costed about that
> much: Lisa + memory board + software + printer) and then be told six months
> later by GM that (a) they have decided that making your car was a mistake,
> (b) they will do their best to ignore its existence, and (c) if you want
> a new, smaller one you can give them another $1499.
> 
> In point of fact auto makers do not do this. When a model is abandoned, they
> usually establish a 10-15 year supply of parts for it.  Ditto when an auto
> mfg goes out of business.  It is still possible to buy Kaiser and Studebaker
> parts.

Have you looked at prices for parts for abandoned models? In my earlier days
I owned a Chevy Corvair (definitely an abandoned model).  When I had to
replace a rear brake tail lens (a 4 inch piece of molded plastic, color red)
the Chevy dealer was happy to do so. For $35 each, with a three week wait
while they figured out which warehouse it was in. 

At that rat, the 'A' key on a Lisa keyboard would run you about $50.

> As it turns out, you can also get service and parts for IBM 1401s, IBM 1620s,
> and IBM 704s (!!!) all of which are still in service, 20+ years after last
> manufacture and 15+ years after obselence.

And the support contract pricing is usually astronomical; it just isn't 
high enough to force people to do the recoding to move to a decent machine.

RCA did a similar thing to my mother's TV set. Beautiful machine, all tube,
and they slowly raised the service contract to the point where she was
paying the equivalent of a new TV every 18 months. So she bought a new TV.
People with lots of IBM 704 assembler don't always have that option.

This is all beside the point, really. What is the point is whether or not
Apple is 'doing right' by its customers.  People who buy machines and then
expect Apple to give them upgrades free are unrealistic.  You have to
ignore the current price of the machine in your calculations -- if you 
waited until now to buy it, you would have saved money, but look at all 
those things you wouldn't have gotten done. Call it 'rent', call it
whatever, by buying the machine then you got use out of it.

Based on talking to people and looking around at the rest of the industry,
it looks to me like Apple is selling upgrades pretty close to their cost
(cost being manufacturing+overhead, not just manufacturing). Any profit they
make seems to be minimal at best. Break even looks more likely. Anyone with
any sense of reality can't ask for anything more (would you prefer going
back to the days of the $1000 memory upgrade?)

Personally, I'd happily pay a bit more if Apple would only set up a better
support organization -- I'd love to get software upgrades from them instead
of trying to find which dealer has what version of an upgrade, and what it
will take for them to part with it.  Microsoft deals with its customers,
so do most other software houses -- why can't Apple? (end gripe)

chuq

-- 
:From the lofty realms of Castle Plaid:          Chuq Von Rospach 
chuq%plaid@sun.COM	FidoNet: 125/84		 CompuServe: 73317,635
{decwrl,decvax,hplabs,ihnp4,pyramid,seismo,ucbvax}!sun!plaid!chuq

The first rule of magic is simple. Don't waste your time waving your hands
and hoping when a rock or a club will do -- McCloctnik the Lucid

jimb@amdcad.UUCP (Jim Budler) (04/10/86)

In article <13041@ucbvax.BERKELEY.EDU> mazlack@ernie.berkeley.edu.UUCP (Lawrence J. Mazlack) writes:
>
>>
>>If you think *thats* bad, try the mathematics of buying a Macintosh XL
>>for $3999, then trading it for a Mac+ for $1499, not counting the
>>$600 512K memory board which doesn't have any trade-in value at all.
>>Not that we have that much choice, the XL is too slow and has no sound
>>generation. The question for the day is "How much did you pay for your Mac+??"
>>   Kelton Flinn
>
>The analogy that several people posted to me is:
>
>How would you like to buy a GM car (a complete Lisa aka XL costed about that
>much: Lisa + memory board + software + printer) and then be told six months
>later by GM that (a) they have decided that making your car was a mistake,
>(b) they will do their best to ignore its existence, and (c) if you want
>a new, smaller one you can give them another $1499.
>
>In point of fact auto makers do not do this. When a model is abandoned, they
>usually establish a 10-15 year supply of parts for it.  Ditto when an auto
>mfg goes out of business.  It is still possible to buy Kaiser and Studebaker
>parts.

Do not do what.  In point of fact they do (a) and (c)... all your examples
were concerned with (b).  And nowhere have I seen anyone from Apple
say that you cannot buy spare parts for your Lisa.  They have said they
intend no further development of Lisa.

Ford intends no further development of the Edsel. They would let you trade
it in with addition of money, on something they do support.
-- 
 Jim Budler
 Advanced Micro Devices, Inc.
 (408) 749-5806
 Usenet: {ucbvax,decwrl,ihnp4,allegra,intelca}!amdcad!jimb
 Compuserve:	72415,1200

phil@ruulab.UUCP (Phil Ruff) (04/14/86)

chuq,

	You can deal directly with Apple in getting your upgrades. I went to my dealer to get some upgrades and they coulld not be bothed so they gave me the below and told me to send in the original I wanted upgraded. I did so, after making backups, of MacWrite & MacPaint, System Disk, ProDOS User's Disk(Apple //) and Apple Access //. With in the week I recieved the System Disk, ProDOS User's disk and Apple Access. Now I got versions as follows:

	System 2.0
	Finder 4.1
	DA/Font Mover 1.5

	ProDOS 1.1.1
	Basic 1.1
	Filer 1.1
	Convert 1.2

	The next week I recieve the MacPaint and Write disk.

	MacWrite 2.2
	MacPaint 1.3
	Finder 1.1g

	From this I would suggest that you define what you want back in a note. I beleive I assumed a little to much.

The address is:

	Apple Media Exchange Program
	P.O. Box 2114
	Cupertino, CA 95015

I hope this helps.

					We're all in this together,
					Phil

mrl@oddjob.UUCP (Scott R. Anderson) (04/15/86)

In article <3472@sun.uucp> chuq@sun.uucp (Chuq Von Rospach) writes:
>> In point of fact auto makers do not do this. When a model is abandoned, they
>> usually establish a 10-15 year supply of parts for it.  Ditto when an auto
>> mfg goes out of business.  It is still possible to buy Kaiser and Studebaker
>> parts.
>
>Have you looked at prices for parts for abandoned models? In my earlier days
>I owned a Chevy Corvair (definitely an abandoned model).  When I had to
>replace a rear brake tail lens (a 4 inch piece of molded plastic, color red)
>the Chevy dealer was happy to do so. For $35 each, with a three week wait
>while they figured out which warehouse it was in. 

I hate to tell you this, Chuq, but my Corvair is still running fine,
and it's a '65!  And I can get tail lenses for $5.  How do I do it?
Well, I certainly don't go to a GM dealer.  It just so happens that
Corvairs were popular cars.  And enough people like them and continue
to drive them that independent suppliers have sprung up to supply
all of those Corvair-specific parts like exhaust pipes, transmissions,
etc.  Some parts (such as tires, fan belts, oil filters) are commonly
available because they used by other cars as well, and some (such as
entire engines) are scavenged from "parts cars".  I get all of these
items from a mechanic who does nothing but repair, restore, and race
Corvairs.

I think the analogy to computers is pretty close:  you can already
get replacement CPU's, memory, disks, etc. from vendors other than
Apple; things like ROM you could scavenge.  All it takes is enough
people who like a particular computer to generate the means to
maintain them, and not by the original manufacturer.  For example,
I have seen ads from people who repair so-called "orphan" computers
such as the Osborne.

There is one major difference between computers and cars, though,
that makes it unlikely that people will hang on to their old
computers, and that is that the technology is changing so fast.
So, while I still drive a 21-year-old car, not many people are going
to have Commodore 64's in a few years.  It's just too cheap to get
something quite a bit better.  In twenty years, the Macintosh may
be passe, and only collectors will own them!

>This is all beside the point, really. What is the point is whether or not
>Apple is 'doing right' by its customers.  People who buy machines and then
>expect Apple to give them upgrades free are unrealistic.  You have to
>ignore the current price of the machine in your calculations -- if you 
>waited until now to buy it, you would have saved money, but look at all 
>those things you wouldn't have gotten done. Call it 'rent', call it
>whatever, by buying the machine then you got use out of it.

I have to agree.  I think Apple is providing a service by supplying
upgrades.  If you don't want it now, well, you still have a useful
piece of equipment (though no longer at the cutting edge :-), and
there will be alternatives to repairing it to make it last longer.
And a few years down the road, the price of the current upgrade will
probably buy you an even better computer.
-- 

					Scott Anderson
					ihnp4!oddjob!kaos!sra

hammen@gumby.UUCP (Marvin the Paranoid Android) (04/18/86)

In article <11328@amdcad.UUCP>, jimb@amdcad.UUCP (Jim Budler) writes:
> >How would you like to buy a GM car (a complete Lisa aka XL costed about that
> >much: Lisa + memory board + software + printer) and then be told six months
> >later by GM that (a) they have decided that making your car was a mistake,
> >(b) they will do their best to ignore its existence, and (c) if you want
> >a new, smaller one you can give them another $1499.
> >
> >In point of fact auto makers do not do this. When a model is abandoned, they
> >usually establish a 10-15 year supply of parts for it.  Ditto when an auto
> >mfg goes out of business.  It is still possible to buy Kaiser and Studebaker
> >parts.
> 
> Do not do what.  In point of fact they do (a) and (c)... all your examples
> were concerned with (b).  And nowhere have I seen anyone from Apple
> say that you cannot buy spare parts for your Lisa.  They have said they
> intend no further development of Lisa.
> 
> Ford intends no further development of the Edsel. They would let you trade
> it in with addition of money, on something they do support.
> -- 
>  Jim Budler
>  Advanced Micro Devices, Inc.

	One of the problems I, and many other Lisa owners have, is a problem  
with sofftware (specifically, the hard-disk trashing habit of MacWorks). It
was only a year ago that the Lisa (oops, Mac XL) was being touted by Apple as
THE hard-disk solution for the Macintosh--the heart of the Macintosh Office.
Now, today, try to get ahold of someone at Apple to even mention the problem
and to complain about it.  I've talked to everyone from sales reps to service
technicians, and each one of those persons has said, 'Gee, that's too bad.
But have you heard about our Lisa upgrade policy?'  I get the distinct
impression from Apple that this is the only kind of software support we will
get: if we upgrade to the latest model, we won't lose all our data. 
No one knows anything if there is/will be a new version of MacWorks that will
correct the problem or if there will be an HFS-compatible MacWorks ( Odd, 
isn't it, that one of the few hard disks that doesn't support the new Apple
file system is made by Apple?).  I guess I could understand this giving up on
the MacWorks problem if my machine were five years old, but geez, it's not
even been a year since its cancellation.
	I still say: look at the Mac product line: it's only a little more 
than 2 years old, and Apple has already gone through the Lisa, the Mac 128
and the Mac 512 (offering upgrade paths for each).  How do they expect to
get loyal customers when every year or so they completely revamp their 
product line?  (Of course, let's not forget what Apple told businesses
upon the introduction of the Lisa--'It's the first machine in a family
that will last 10 years.' Of course, those were the days when Apple hyped
its 'Lisa Technology'--do you think you'll ever hear anyone from Apple say
those words again?).
Sorry for the long and disorganized flame, but try to understand the
frustrations of a Lisa owner.  You'd be a little upset as well.

Robert J. Hammen   {seismo,ihnp4,allegra,harvard,topaz}!uwvax!puff!hammen
UW-Madison CS Dept.  hammen@puff.wisc.edu
UW-Madison Plasma Physics Dept.  plasma%wiscpsl.bitnet {@wiscvm.wisc.edu}

chuq@sun.UUCP (04/20/86)

> No one knows anything if there is/will be a new version of MacWorks that will
> correct the problem or if there will be an HFS-compatible MacWorks 

Based on the info I've seen on Compuserve, MacWorks won't be upgraded to
support the new Roms or HFS.

> 	I still say: look at the Mac product line: it's only a little more 
> than 2 years old, and Apple has already gone through the Lisa, the Mac 128
> and the Mac 512 (offering upgrade paths for each).

I think the reports of the death of the 512K are significantly
overexaggerated -- it is alive and well and a strong page of Apple's sales
philosophy. The Lisa was, frankly, a price/performance lemon. The 128K was
an example of Steve Job's misguided attempt to force reality into the mold
he saw for it. There simply never should have been a 128K Mac.

Apple has made a couple of mistakes (the Lisa price, the Apple III, and the
128K Mac). More importantly, Apple keeps looking for ways out of their
mistakes with a minimum of pain for their customers -- they COULD have just
left the Lisa people out to dry, for example -- many computer companies
would have (I haven't seen IBM offering to trade in PCJr for a real computer
recently...). They also seem to be learning from their mistakes, and aren't
repeating them. A year ago, 256K of memory cost a grand, remember?

Apple isn't perfect, but they could be a LOT worse. A company that size
can't please everyone, but they are trying to do what they can for who they
can. 

chuq
-- 
:From the lofty realms of Castle Plaid:          Chuq Von Rospach 
chuq%plaid@sun.COM	FidoNet: 125/84		 CompuServe: 73317,635
{decwrl,decvax,hplabs,ihnp4,pyramid,seismo,ucbvax}!sun!plaid!chuq

The first rule of magic is simple. Don't waste your time waving your hands
and hoping when a rock or a club will do -- McCloctnik the Lucid

kff@kesmai.UUCP (Kelton Flinn) (04/27/86)

   Well, the Mac+ has arrived, we carted the Lisa out with a fork lift :-)
and handed over the extra $1500. Do I regret it?
   NO WAY! After 3 days with the Mac+ and HFS, I can't beleive I used to
actually get work done on the Lisa. Instead of 5 minutes to start the
machine, and 2 minutes to get into the Finder, we are talking about 15 sec.
to start up, and 2-6 seconds for the Finder, depending on the contents
of the disk cache. Its a bitch we didn't wait a while and buy one of these
things new, since we never got $5000 use out of the Lisa, but thats the
way the cookie crumbles. Perhaps it would have been nicer if Apple had
upgraded the Lisa to handle HFS, etc, but now we have the sound generator
(it talks!) and I can realistically consider carting the machine home
with me (without the HD20) for some extra work/games.
   Tossing $0.02 into the C discussion, Consulair C 4.1 works very
well under HFS. All the folders I had set up under MFS transfered
directly, I ran the Path Manager, and *poof* the program compiled and
linked. As far as portability goes, I have a graphics-intensive application
I am developing that is routinely transfered between the Mac, and a PC
using Lattice C, that compiles and runs on both machines with a few #IFDEF's.
Don't have Quickdraw on the PC, of course, so the output isn't quite as nice,
and Lattice is *slow*, but the program works. Both compilers seem to be
pretty close to bug free.
   That 512K Lisa memory board is still available, by the way, we don't seem
to have a crowd beating the doors down to get it...
   Kelton Flinn
   ..!decvax!mcnc!ncsu!uvacs!kesmai!kff