[net.micro.amiga] Open letter to Atari and Commodore

jmg@cernvax.UUCP (jmg) (11/08/85)

This open letter is NOT concerned with whether the 520ST is better or
worse than the amiga: I feel that both are very interesting machines
which might either flop or sell a lot. It IS concerned with that nasty
subject of END-USER PRICE, in particular for those of us who live in
Europe.

As an indicator of the problem, consider the following prices for the
Atari 520ST (floppy, mouse, monochrome) :-

In the USA                   $600-700
In England                   $1000        (+15% VAT)
In Switzerland               $1400

Obviously I do not yet have figures for the Amiga in Europe. I do know
that in the past the Commodore European prices have not been outrageous
compared to US prices.

Now, I know that there are all sorts of arguments why prices in Europe
are higher than the US prices, and why Swiss prices are still higher.
However, I buy sufficient amounts of computer hardware to have heard
all these arguments many times, and my empiric observation is that a
markup of above 10% (England) or 20% (Switzerland) is excessive. Please
don't waste my time trying to argue otherwise.

Therefore, the message to Atari and Commodore is as follows:-

If the Commodore markup is anything like the Atari markup, then the
Amiga will be priced around a Mac. As such, it will lose out simply
because of the volume of software already available for the Mac. Also,
of course, it is then more expensive than the IBM PC: same arguments.
However, if the markup is very small then the price might be around
the current 520ST price. So, Mr Commodore, please minimise this markup
as soon as you start to sell in Europe.

If the Atari markup stays so ridiculously high then it will not be much
below that of cheap PC clones (or even perhaps the Amiga). It will certainly
not be in the right range for the Home Computing market: note that this
market is only now starting in Switzerland (lots of C64s on sale,
educational programs on the box etc.). People will start getting 520s
in funny places, modifying them locally, and there will not be a tidy
organised selling operation. Therefore, Mr Atari, please tell your
European distributors to be less short-term greedy and more long-term
intelligent.

I hope that these words might help people like me, who envisage
upgrading their current home computer next year, but don't know yet
with what!

mjg@ecsvax.UUCP (Michael Gingell) (11/09/85)

> subject of END-USER PRICE, in particular for those of us who live in
> Europe.
> 
> As an indicator of the problem, consider the following prices for the
> Atari 520ST (floppy, mouse, monochrome) :-
> 
> In the USA                   $600-700
> In England                   $1000        (+15% VAT)

From my experience just about everything is more expensive when
imported. Just try and buy a BMW or Mercedes in the USA and see
how the price is inflated (even allowing for US emission controls).

The Swiss are probably just trying to recoup all the taxes levied
to run the navy .... :-)

Mike Gingell  ..decvax!mcnc!ecsvax!mjg
> In Switzerland               $1400
>