[comp.sys.ibm.pc] Borland fee for TP 4.0

dons@killer.UUCP (Don Simoneaux) (11/14/87)

I missed previous discussion on this subject.  I apoligize if I am
rehashing old ground.

Let me start by saying that I like Borland a lot and have bought many
of their products.  They are probably the best thing to happen for
programmers (and others) since the spread of the IBM PC and clones.
I have noticed some very encouraging things happening at MicroSoft as
a result of the competition from Borland.  But .... has anyone else
noticed that Borland and MicroSoft marketing are moving toward one
another?!?

I too think that $40 is too much for an upgrade of a product that
retails for $99.  Even MicroSoft charges only $25, which I think is a
reasonable price.  Based on what most *good* companies (e.g., WordPerfect)
charge, $25 seems like a fair price.  Seems like I recall a Borland 
policy of $10 for an upgrade, or was that only for minor revs?

-- 
	Don Simoneaux		Phone:  (214) 964-1859
	3605 Interlaken Dr.
	Plano, TX 75075		USENET:  ...ihnp4!killer!dons

richardh@killer.UUCP (11/15/87)

In article <2092@killer.UUCP>, dons@killer.UUCP (Don Simoneaux) writes:
> 
> I too think that $40 is too much for an upgrade of a product that
> retails for $99.  Even MicroSoft charges only $25, which I think is a
> reasonable price.  

I realize that Microsoft MASM has a list price above $99, but it's not 
that much above it. My MASM upgrade cost me $40, which I had no problem 
justifying. I don't think Borland's upgrade price for TP 4.0 is out of 
line (unless it shows up in an ad for The PC Connection for the same 
price.)

richard hargrove
...!ihnp4!killer!richardh
-------------------------

dons@killer.UUCP (11/19/87)

In article <2095@killer.UUCP>, richardh@killer.UUCP (Richard Hargrove) writes:
> In article <2092@killer.UUCP>, dons@killer.UUCP (Don Simoneaux) writes:
> > 
> > I too think that $40 is too much for an upgrade of a product that
> > retails for $99.  Even MicroSoft charges only $25, which I think is a
> > reasonable price.  
> 
> I realize that Microsoft MASM has a list price above $99, but it's not 
> that much above it. My MASM upgrade cost me $40, which I had no problem 
> justifying. I don't think Borland's upgrade price for TP 4.0 is out of 
> line (unless it shows up in an ad for The PC Connection for the same 
> price.)
> 

Actually, MASM 5.0 lists for $150, so a $40 upgrade fee is 27%.  The
upgrade fee for WordPerfect 4.2 (from 4.1) is $45 on a package that lists
for $495.  WP sells on the street for about $200, but that still makes
the upgrade fee about 23%.  Following this line of reasoning, TP 4.0 
upgrades should be about $25.  After thinking about this some more (and
having the opportunity over the weekend to talk face to face with a 
Borland marketeer), another thought occurred to me.  Could it be that
Borland has spoiled us with their low list prices, so that the relative
cost of the upgrade seems high?  Still, when I know that Soft Warehouse
in Dallas will probably be selling TP 4.0 for $55, $40 for an upgrade 
seems high.  But then it probably is of comparable worth to MASM.

-- 
	Don Simoneaux		Phone:  (214) 964-1859
	3605 Interlaken Dr.
	Plano, TX 75075		USENET:  ...ihnp4!killer!dons

brad@looking.UUCP (11/20/87)

In article <2140@killer.UUCP> dons@killer.UUCP (Don Simoneaux) writes:
>Borland has spoiled us with their low list prices, so that the relative
>cost of the upgrade seems high?  Still, when I know that Soft Warehouse
>in Dallas will probably be selling TP 4.0 for $55, $40 for an upgrade 
>seems high.  But then it probably is of comparable worth to MASM.

It's quite simple.  A $99 product sells to a major distributor for $40.
The upgrade is available only direct for Borland.

Borland has (if you haven't noticed the prices of their other products)
realized that they were crazy to sell things for $50 in the old days.

With TP 4.0 it's even worse.  How many *new* customers can they expect
for this product?  Turbo Pascal 2 & 3 sold so well because they got anybody
remotely interested in Pascal to buy one.  They got Microsoft to give up the
race.  The best they can do with non-customers is win over a few diehards who
refused to use a Pascal without linking and a few other features.  Being
faster won't help, they already won over all the speed demons.

So with TP 4.0, they're faced with getting few new customers.  To make money,
they have to make the same from an upgrade as they do from a retail sale.

Somebody once told me that they thought Borland made money on cheap software
because all the "real" customers (instead of the "I'll try it" customers)
bought TP 1.0, TP 2.0, TP 3.0, TP toolbox, TP graphics, etc. etc.  From
the serious customers, they got as much money as the guy selling the $300
system.  From the experimenter, they got money nobody else was getting.

Nothing has changed, except the way it's being presented.
-- 
Brad Templeton, Looking Glass Software Ltd. - Waterloo, Ontario 519/884-7473