[net.micro.mac] Hyperprices for Hyperdrive support

bates@cfig1.DEC (Ken Bates DTN 522-2039) (04/01/86)

***	FLAME ON

Having been a Hyperdrive 20 owner for the past several months, I never thought 
I would see the day when I would regret my purchase. Sad to say, that day has 
come. I received a letter in the mail from GCC the other day informing me that 
if I wished to upgrade my 512K Mac to include the new 800K drive, it would 
cost me $89 to keep my Hyperdrive working. If I wished the Mac+ logic board, 
it would cost me $299 to keep the Hyperdrive working.

I thought that this must have been a misprint, so I called GCC. No mistake, they
want a cool $299 if you have your Mac upgraded to a Mac+. This after paying
$2,200 for the drive in the first place (and in addition to whatever the going
price is for a Mac+ conversion!). I hate to think what will happen when the next
release of the Finder comes out. Will GCC want another few hundred so I can boot
it? Almost makes me afraid to use their backup utility. Will the restore program
demand money before I can recover files?

The mathematics of the price become even more ridiculous when previous prices
are taken into account. If I recall, the original Hyperdrive 20 cost around
$2500. If I had purchased one at that price, then the upgrade price of $300
would bring the total to $2800. On the other hand, I can go out and buy a brand
new Hyperdrive 20 which works with the Mac+ for $1700 (according to a GCC
spokesman I talked to). How can this be? I realize that profit is the American
way, but this seems a little ridiculous! Their response to this query was that
(quote) they were doing a favor to their customers by even selling an upgrade;
other manufacturers were forcing existing owners to buy a new drive (unquote).
So much for customer service and support.

I can understand a company charging excessive prices when they're the only kid
on the block, but I fail to see how that company expects to remain viable when
they have competitors and continue to gouge their customers. I talked to the 
local Apple dealer, and he is in complete agreement with my position, and
is no longer recommending Hyperdrive purchases to his customers. (He cited
reliability problems as the reason, but agreed with my assessment of their
business practices.) 

In summary, I would advise anyone considering a hard disk to avoid GCC and the
Hyperdrive like the plague, since the policy of GCC seems to be to soak the 
customer for whatever they can (or is it simply take the money and run?). It 
appears that your current purchase price will only be the beginning. As new 
upgrades to the Mac come out, GCC will in all probability be back in your 
pocket demanding more money if you want to stay compatible.

You can always tell the pioneers by the arrows in their backs.

***	FLAME OFF

Disclaimer: The opinions expressed herein are my own and in no way represent
	    the opinion of my employer. On the other hand, my employer owns
	    numerous Macs and is contemplating the acquisition of more, and
	    my recommendation will be to avoid GCC and utilize a vendor which
	    provides customer support instead of customer pillage.


-- Ken Bates
	uucp  :	decwrl!dec-rhea!dec-bison!bates
	arpa  :	bates%bison.dec@decwrl
	cis   :	70047,1226
	delphi: KBATES
	enet  :	BISON::BATES
	phone :	(303) 594-2039
	mail  :	Digital Equipment Corp.
		301 Rockrimmon Blvd.
		Colorado Springs, CO  80919

thomas@utah-gr.UUCP (Spencer W. Thomas) (04/02/86)

This is very similar to all the flames when the 512 Mac came out.  It's
amazing the number of people who want a manufacturer to do something
(that costs the manufacturer money) for free.  Obviously, GCC has to do
something to effect the upgrade.  This something costs them time and
materials, and they are perfectly within their rights to charge for it.

It is also true (unfortunately or fortunately, depending) in our
business that prices tend to come down after the introduction of a new
product, and after some of the start-up costs have been amortized.
Obviously, you thought that the price you payed for your Hyperdrive was
worth it at the time, or you wouldn't have gotten it.  Ask yourself
honestly, if the difference between what you payed, and what you could
get one for now, is worth the use you have gotten out of it so far.
Would you really have done without the drive for so long, just so you
could buy a cheaper one?

You should be glad that computer manufacturers usually provide an
"upgrade" path.  If you buy an automobile, and next year a much improved
version comes out (with lower gas mileage, more power, more comfortable
seats, snazzier paint job, and so on), you can't "upgrade" your current
car at all -- you are stuck with it, unless you want to buy a complete
new one.

-- 
=Spencer   ({ihnp4,decvax}!utah-cs!thomas, thomas@utah-cs.ARPA)

tim@ism780c.UUCP (Tim Smith) (04/03/86)

In an article bates@cfig1.DEC (Ken Bates) writes:
>
> I thought that this must have been a misprint, so I called GCC.
> No mistake, they want a cool $299 if you have your Mac upgraded
> to a Mac+.  This after paying $2,200 for the drive in the first
> place (and in addition to whatever the going price is for a Mac+
> conversion!).  I hate to think what will happen when the next
> release of the Finder comes out.  Will GCC want another few
> hundred so I can boot it?  Almost makes me afraid to use their
> backup utility.  Will the restore program demand money before I
> can recover files?

When a new release of the Finder comes out, it will probably not
require hardware changes to run!  The upgrade to Mac+
compatability for the Hyperdrive involves replacement of the
controller.  $300 is a reasonable price for a controller.

However, $89 seems unreasonable for the ROM only upgrade, but I don't
know anything about ROM prices.  Perhaps someone from GCC ( which is
on the net ) would be so kind as to explain?

> If I recall, the original Hyperdrive 20 cost around $2500.  If I
> had purchased one at that price, then the upgrade price of $300
> would bring the total to $2800.  On the other hand, I can go out
> and buy a brand new Hyperdrive 20 which works with the Mac+ for
> $1700 (according to a GCC spokesman I talked to).  How can this
> be?

My Mac started out as a 128k.  It is now a 512k.  Total cost of my
Mac ( purchase price + memory upgrade ) was $2100.  I could now buy
this for $1300.  A Mac+ upgrade would cost $900 ( $300 for disk/rom,
$600 for logic board ).  The total would be $3000.  I can buy a Mac+
for $2100.  How can this be?

Prices fall.  You should have *known* that when you bought your
Hyperdrive ( and when you bought your Mac ).  Think of the price
difference as what you pay to use the product while others are
waiting for the price to fall.

As for the upgrade cost, try looking at it this way:

        You have 1 512k Mac and a Hyperdrive, and you desire a
        Mac+ and a Hyperdrive+.

        There are two ways to do this.  You can pay the upgrade
        fees, which come to ~$1300.

        The other thing you could do is sell your Mac and Hyperdrive,
        and apply the money towards a Mac+ and a Hyperdrive.  A *new*
        512 Mac goes for about $1400, so if you get real lucky, you
        may get $1200.  A new Hyperdrive goes for around $1700, so
        $1500 would be a very good price to sell a used one for.
        This gives you $2700.  Now a Mac+ is going for around $2100
        and you said that a Mac+ compatable new Hyperdrive is $1700.
        That brings us to $3800.  We will forget about buying MacWrite
        and MacPaint for the Mac+.  We are $1100 short.

The difference between the two approaches is $200.  And this was assuming
some pretty good prices for your used equipment.  I would interpret this
as saying that the upgrade cost is not unreasonable.

[ I am not sure that the above actually means anything.  Is this a valid
  way of telling if an upgrade cost is "reasonable"? ]

Another way to look at it is to look at the parts you need.  To
have a Hyperdrive+, you need the disk, the controller, the roms,
the power supply and the fan.  GCC sells these together for about
$1700.  Prices for the consumer are about 4 times what it costs
the company, so maybe $1000 of the $1700 is the disk itself, and
the fan and power supply are probably about $300 when it gets to
the consumer.  Thus, the consumer cost of the controller and the
roms are about $400.  Since you already have the disk, fan, and
power supply, and upgrade cost of around $400 should be
reasonable.

> As new upgrades to the Mac come out, GCC will in all probability
> be back in your pocket demanding more money if you want to stay
> compatible.

So will Apple.  What do you think a fair price would be?
--

Tim Smith       sdcrdcf!ism780c!tim || ima!ism780!tim || ihnp4!cithep!tim

ngg@bridge2.UUCP (Norman Goodger) (04/04/86)

> 
> 
> ***	FLAME ON
> 
> Having been a Hyperdrive 20 owner for the past several months, I never thought 
> I would see the day when I would regret my purchase. Sad to say, that day has 
> come. I received a letter in the mail from GCC the other day informing me that 
> if I wished to upgrade my 512K Mac to include the new 800K drive, it would 
> cost me $89 to keep my Hyperdrive working. If I wished the Mac+ logic board, 
> it would cost me $299 to keep the Hyperdrive working.
> 
>
***	FLAME OFF


I agree with this entirely. GCC is trying to soak their users to the hilt.
its bad enough when they overprice their products, because they think that
they can get away with it, its another when they are taking advantage of
the user. ITs a real shame that they can't see the customer base that they
are throwing away, because of there greed and blindness to the market.
with the advent of the SCSI drives that are just as fast if not faster than
the Hyper at prices that are far lower it only a matter of time before 
Hypers market dries up. Hyper's excuse is they have better software, its 
only a matter of time before that problem is solved too.

				Norm Goodger
				Bridge Comm.
				!bridge2!ngg
		

kff@kesmai.UUCP (Kelton Flinn) (04/08/86)

> ***	FLAME ON
> 
> Having been a Hyperdrive 20 owner for the past several months, I never thought 
> I would see the day when I would regret my purchase. Sad to say, that day has 
> come.
...
> 
> The mathematics of the price become even more ridiculous when previous prices
> are taken into account. If I recall, the original Hyperdrive 20 cost around
> $2500. If I had purchased one at that price, then the upgrade price of $300
> would bring the total to $2800. On the other hand, I can go out and buy a brand
> new Hyperdrive 20 which works with the Mac+ for $1700 (according to a GCC
> spokesman I talked to). How can this be? I realize that profit is the American

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+??"
(No flames about the stupidity of buying an XL in the first place, please).
  Seriously, anyone want a 512K memory board for a Lisa? Inquiries by mail
or telephone to:
   Kelton Flinn
   Kesmai Corporation
   ..!decvax!mcnc!ncsu!uvacs!kesmai!kff
   (804) 973-1040
----------------
Claimer: The above opinions represent those of my employer, since
I'm the boss.

76645668@sdcc13.UUCP ({|lit}) (04/08/86)

In article <1712@utah-gr.UUCP>, thomas@utah-gr.UUCP (Spencer W. Thomas) writes:
> 
> This is very similar to all the flames when the 512 Mac came out.  It's
> amazing the number of people who want a manufacturer to do something
> (that costs the manufacturer money) for free.  Obviously, GCC has to do
> something to effect the upgrade.  This something costs them time and
> materials, and they are perfectly within their rights to charge for it.

There is a difference between charging and honest price to pay for,
and make a profit on, a legitimate upgrade, and price gouging.  GCC
is charging all it can get from people who have almost no choice now
but to pay up, if they want to remain in the forefront of the Mac
field.  

Other companies, for instance Levco (no affiliation except as a
customer) charge $25 to be compatible with the Apple Mac+ upgrade.
This covers a new EPROM, which must cost them a whole $3, the time
it takes them to program it (worth another $2), and a nice (500%) 
profit.  

Many people, me included, we understandably upset when Apple
announced it was charging $1000 for a 512K upgrade involving $300
(at that time) worth of chips.  Thats why I bought mine from Levco
for $200 (9 months later). [By the way, Levco charges $25 to make
their 2Meg upgrade Mac+ compatible, not their 512K upgrade.]

Certainly a company is well within their "right" to charge whatever
they can get for a product.  And we are well with our rights to not
patronize a company that has shown a willingness to take advantage
of our wallet at the first opportunity.  If you have money to burn,
buy a Hyperdrive.  They sure are fast drives, I wouldn't mind owning
one.  But I want value in a product too, and in a field where I
expect to have to upgrade every year, value includes not only the
original purchase price, but the upgrade policy too.

David Shayer, Univ. of Cal. at San Diego

dlt@csun.UUCP (04/16/86)

> In article <1712@utah-gr.UUCP>, thomas@utah-gr.UUCP (Spencer W. Thomas) writes:
> > 
> > This is very similar to all the flames when the 512 Mac came out.  It's
> > amazing the number of people who want a manufacturer to do something
> > (that costs the manufacturer money) for free.  Obviously, GCC has to do
> > something to effect the upgrade.  This something costs them time and
> > materials, and they are perfectly within their rights to charge for it.
> 
> There is a difference between charging and honest price to pay for,
> and make a profit on, a legitimate upgrade, and price gouging.  GCC
> is charging all it can get from people who have almost no choice now
> but to pay up, if they want to remain in the forefront of the Mac
> field.  
I've decided to buy a Mac+/HD20.  I'm tired of being tied down by GCC and
waiting for upgrade paths.  I find it interesting that the Mac+/HD20
combination is generally faster than the 10M HyperMac in loading programs,
etc.  This may be a misperception as I only received the machine yesterday.
> 
> Other companies, for instance Levco (no affiliation except as a
> customer) charge $25 to be compatible with the Apple Mac+ upgrade.
> This covers a new EPROM, which must cost them a whole $3, the time
> it takes them to program it (worth another $2), and a nice (500%) 
> profit.  
> 
> Many people, me included, we understandably upset when Apple
> announced it was charging $1000 for a 512K upgrade involving $300
> (at that time) worth of chips.  Thats why I bought mine from Levco
> for $200 (9 months later). [By the way, Levco charges $25 to make
> their 2Meg upgrade Mac+ compatible, not their 512K upgrade.]
> 
> Certainly a company is well within their "right" to charge whatever
> they can get for a product.  And we are well with our rights to not
> patronize a company that has shown a willingness to take advantage
> of our wallet at the first opportunity.  If you have money to burn,
> buy a Hyperdrive.  They sure are fast drives, I wouldn't mind owning
> one.  But I want value in a product too, and in a field where I
> expect to have to upgrade every year, value includes not only the
> original purchase price, but the upgrade policy too.
> 
> David Shayer, Univ. of Cal. at San Diego

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