[comp.sys.mac] educational Mac pricing

jprice@uclapp.physics.ucla.edu (John Price) (03/07/90)

In article <21385@netnews.upenn.edu>, grobbins@grad1.cis.upenn.edu writes:
>                    Penn   New York
>CPU               student   street
>
>Mac SE              1594    1599
>Mac SE/30           2477    2399
>Mac IIcx            3249    2849
>Mac IIci            3846    3849
>
>So much for educational price breaks.

	Hey, what do you want?  You get a $5 break on the SE, and a $3 
break on the IIci!

:)

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grobbins@grad1.cis.upenn.edu (03/07/90)

Have you ever drooled over the price breaks students get on Macintosh
computers?  Ever wished you attended or worked at a consortium school,
so that you would be eligible for Apple's best bargains?

Well, at least here at Univ. of Penn., that's just a dream.  Here 
are the current prices on Macintosh CPUs for students/faculty/staff 
at the official campus computer store, with some prices taken from 
an ad (for Computer Era) in the March 6 New York Times for comparison.

                    Penn   New York
CPU               student   street

Mac SE              1594    1599
Mac SE/30           2477    2399
Mac IIcx            3249    2849
Mac IIci            3846    3849

All CPUs are 1 Meg, FDHD machines.  Penn includes a keyboard
in all prices, and 4-bit video with the IIcx; Computer Era 
includes a year of free service.

So much for educational price breaks.


Grobbins     grobbins@eniac.seas.upenn.edu

Usual disclaimers apply.

dan@chaos.cs.brandeis.edu (Dan Schwarz) (03/07/90)

>In article <21385@netnews.upenn.edu>, grobbins@grad1.cis.upenn.edu writes:

Let me add one extra column to your figures... these are OUR "generous"
student discount prices, straight from the Spring 1990 price list.

>>                    Penn   New York	Brandeis
>>CPU               student   street	Student
>>
>>Mac SE              1594    1599 	1621.62
>>Mac SE/30           2477    2399	2591.82
>>Mac IIcx            3249    2849	3127.74
>>Mac IIci            3846    3849	4199.58
>>
>>So much for educational price breaks.

The interesting part about all this is that the CHARGE-LINE price for Brandeis
faculty is 15% lower, across the board, for all prices.  When I asked about
this, the salesperson said that the discrepancy was due to the absence of 
sales tax for faculty members.  Sure, they get that break, but even in 
Massachusetts, Sales tax isn't 15%! Where's the extra money going, hm?

When I get my new system, I'm going to get it mail-order from New Jersey
- no sales tax, no price gouging, and they actually keep an INVENTORY of
computers! Imagine that! No 5-week delay between order and receipt!

It just doesn't make sense.

-- 
| Same as it ever was  | Dan Schwarz, MB 2926 Brandeis U. | RECYCLE YOUR JUNK|
| Same as it ever was  | I'NET dan@chaos.cs.brandeis.edu  | SUPPORT EARTH DAY|
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| Same as it ever was...TALKING HEADS "Once in a Lifetime"| FloydRushDeadEtc.|

gft_robert@gsbacd.uchicago.edu (03/07/90)

[...]
>>>                    Penn   New York	Brandeis
>>>CPU               student   street	Student
>>>
>>>Mac SE              1594    1599 	1621.62
>>>Mac SE/30           2477    2399	2591.82
>>>Mac IIcx            3249    2849	3127.74
>>>Mac IIci            3846    3849	4199.58
>>>
[...]

On a related note: One of the new Apple tenets seems to be a better dealer
network, cutting out the dealers who "just move boxes".  All in all, this seems
a good idea: better service, dealers who offer their customers good service,
etc.  I just hope Apple doesn't cut out _all_ the "box movers", if they're the
ones who are offering prices like those above.  Maybe some NY firms are giving
cutrate prices and great service, but if I had to have one or the
other...suffice it to say, I couldn't afford to pay list, but the prices above
are more reasonable (BTW, I don't get edu discount).

BTW, anybody know how these people sell for so little?  Are they just cutting
their own margin?

Robert

============================================================================
= gft_robert@gsbacd.uchicago.edu * generic disclaimer: * "It's more fun to =
=            		         * all my opinions are *  compute"         =
=                                * mine                *  -Kraftwerk       =
============================================================================

gwangung@milton.acs.washington.edu (Roger Tang) (03/07/90)

In article <7887@tank.uchicago.edu> gft_robert@gsbacd.uchicago.edu writes:
>>>>                    Penn   New York	Brandeis
>>>>CPU               student   street	Student
>>>>
>>>>Mac SE              1594    1599 	1621.62
>>>>Mac SE/30           2477    2399	2591.82
>>>>Mac IIcx            3249    2849	3127.74
>>>>Mac IIci            3846    3849	4199.58

		Oh well, I can do this too.....
		Univerisity of Washington price
Mac SE			1551
Mac SE/30		2478
Mac IIcx		2927+345 (for 4-bit card)
Mac IIci		3915

	Note that this price does NOT include a keyboard, but DOES include
the local sales tax, which I'm sure the New York "price" does not (makes a
BIG difference in comparing...).  Speaking of which.....


>BTW, anybody know how these people sell for so little?  Are they just cutting
>their own margin?

	Who the HECK are these people??  I looked over my NY Times for
3/6 and I didn't see ANY ad that came CLOSE to these quoted prices.......

FTWILSON@pucc.Princeton.EDU (Frederick Todd Wilson) (03/07/90)

In article <7887@tank.uchicago.edu>, gft_robert@gsbacd.uchicago.edu writes:

>[...]
>>>>                    Penn   New York  Brandeis
>>>>CPU               student   street   Student
> [price stuff deleted]
>
>BTW, anybody know how these people sell for so little?  Are they just cutting
>their own margin?
>
>Robert
>
>============================================================================
Without knowing exactly what ad, from what dealer, in what paper, etc. in
which these prices showed up, it's impossible to say for sure. But, in theory,
it should be very difficult for dealers to undercut a campus price. Nobody
outside Apple gets better prices than ed. institutions.

Prices as listed from the schools above are usually the result of campus
resale that has a lot of overhead (space, inventory, salaries, etc.). This
is one way by which campus prices could be higher than street.

Another possibility is that there may be some fine print to the deal in the
paper, and that fine print may not even be in the ad. For example, many
dealers purchase bare-bones systems from Apple, and then OEM non-Apple HDs.
(Sure, they'll be Quantums, but not the ones Apple installed.) For this
reason its actually very important to ask a dealer who manufactures the
drive mechanism and if it was Apple installed (that is, if you care).

One last thing is that dealers sometimes put conditions of sale in fine
print (like: Get price XXXX on a Mac SE/30 [when you buy this peripheral
with it]). Sometimes these are Apple generated, sometimes not.

So, there are some ideas on that. Hope it answers some questions.

Todd Wilson
Disclaimer: All opinions are my own, etc.

chandy@dg.dg.com (John Chandy) (03/08/90)

In article <1990Mar7.014140.17439@chaos.cs.brandeis.edu> dan@chaos.cs.brandeis.edu (Dan Schwarz) writes:
>>In article <21385@netnews.upenn.edu>, grobbins@grad1.cis.upenn.edu writes:
>
>Let me add one extra column to your figures... these are OUR "generous"
>student discount prices, straight from the Spring 1990 price list.
>
>>>                    Penn   New York	Brandeis
>>>CPU               student   street	Student
>>>
>>>Mac SE              1594    1599 	1621.62
>>>Mac SE/30           2477    2399	2591.82
>>>Mac IIcx            3249    2849	3127.74
>>>Mac IIci            3846    3849	4199.58
>>>
>>>So much for educational price breaks.
>

When I used to work at the computer center at MIT (until June 89), our
discount from Apple used to be about 46% off list.  I think Apple's
maximum dealer discount is 40% but I'm not sure about that.  We used
to mark up our prices roughly 10-15% because we were forced to be self
sufficient, i.e. no subsidies from MIT.  A lot of the state university
computer stores get substantial subsidies from the university itself,
and thus they are able to charge prices without the markup.  I don't
know how MIT's prices compare with those above, but I can bet Penn is
marking up their products a lot more than they have to.  In defense of
them, Penn may have been stuck with a whole lot of machines bought
before the recent price drop and Apple may not be offering price
protection.  Apple did that to MIT when they dropped the MacII, and we
were forced to eat the price difference.  As for Brandeis, I don't
think they are a consortium school and thus don't get the same level
of discounts.


					John Chandy

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roy@phri.nyu.edu (Roy Smith) (03/08/90)

In <7887@tank.uchicago.edu> gft_robert@gsbacd.uchicago.edu writes:
> One of the new Apple tenets seems to be a better dealer network, cutting
> out the dealers who "just move boxes".  [...] BTW, anybody know how these
> people sell for so little?  Are they just cutting their own margin?

	The prices under discussion are from Computer Era, who are indeed a
"box mover".  Their service department, in my opinion, is pretty poor.
They have a neato phone mail system with multiple levels of menus, which
eventually lets you leave a message, but it can be days of persistant
calling until you get to talk to anybody.

	One way CE has the lowest prices in town is that they only take
certified checks or cash (and you have to put down a 25% deposit when you
order your machine, the rest when you pick it up a few days later).  They
will, if you convince them you are a big customer willing to do a lot of
repeat business, allow you to use plain (i.e. non-certified) corporate
checks, but they don't take credit cards, or purchase orders, or personal
checks (unless certified).  A saleman there told me that CE is privately
owned by two guys who give a whole new definition to the term "fiscal
conservitism".  They have a grand total of one customer from whom they
accept POs.  A small company called Citibank.

	We do a lot of business with ComputerLand (which does take our
POs).  I once got them to match CE's prices on a $15k order by twisting our
salesman's arm a lot, and offering a check with the order instead of
issuing a PO and paying against an invoice 30 days later.  Since then, CE
has dropped their prices another few $100 (the latest prices represent a
$150 drop for the c[xi] compared to the past couple of months, plus the
1-year service sweetner, which is nothing to sneeze at).  CL now says that
they can no longer match CE's prices, since they would loose money on it.
Who knows?  CE certainly moves a lot more Macs than CL, so maybe they get a
better deal on wholesale from Apple.  CE sells only Macs, I think.  CL (and
most of the other NY stores) sell everything.  Our local CL branch now has
their Mac stuff on display closer to the front window than their PC stuff,
so maybe that's an indication of how things are going?  Again, who knows?

	CL sells peripherals for less than CE does, so the total system
price remains about the same.  On the other hand, CE is perfectly happy to
sell you a bare CPU and let you integrate your own stuff from the ads in
the back of MacWeek.  CL tries to talk you out of this, but I've got my
salesman well trained in this respect.  I tell him honestly what the best
price I've seen on disks, memory, or monitors is and give him a chance to
match it.  If he can't, we shake hands and he sells me the bare CPU.  I
tend to go with CL, as long as he can get close to CE's price, because I
know we have a long-term relationship with the same salesman.  They
occasionally throw us favors when they can (I've had a couple of repairs
done freebee).

	Now, if you're thinking of opening a business, and need a lesson
in the long-term advantages of good customer relations, pay close attention
to this story.  4 or 5 years ago, somebody here had a PC with a bad memory
chip.  I didn't know anything about fixing PCs, so I brought it over to the
then-brand-new CL a few blocks from here.  They fixed it in one day, and
when I went to pick it up, the manager said it was a $3 part (i.e. one
memory chip) and 10 minutes worth of labor.  If he wrote up a bill, it
would be a minimum charge of at least $100, but that didn't seem right to
him, so he just did it for free.  A good first impression, that has lasted
for years.  I doubt a box-mover like CE would have done that for me.
--
Roy Smith, Public Health Research Institute
455 First Avenue, New York, NY 10016
roy@alanine.phri.nyu.edu -OR- {att,philabs,cmcl2,rutgers,hombre}!phri!roy
"My karma ran over my dogma"

cmm1@cunixa.cc.columbia.edu (Christopher M Mauritz) (03/08/90)

In article <10660@pucc.Princeton.EDU> FTWILSON@pucc.Princeton.EDU writes:
>In article <7887@tank.uchicago.edu>, gft_robert@gsbacd.uchicago.edu writes:
>
>>[...]
>>>>>                    Penn   New York  Brandeis
>>>>>CPU               student   street   Student
>> [price stuff deleted]
>>
>>BTW, anybody know how these people sell for so little?  Are they just cutting
>>their own margin?
>>
>>Robert
>>
>>============================================================================
>Without knowing exactly what ad, from what dealer, in what paper, etc. in
>which these prices showed up, it's impossible to say for sure. But, in theory,
>it should be very difficult for dealers to undercut a campus price. Nobody
>outside Apple gets better prices than ed. institutions.
>
>Prices as listed from the schools above are usually the result of campus
>resale that has a lot of overhead (space, inventory, salaries, etc.). This
>is one way by which campus prices could be higher than street.
>
Or they could be just gouging the students by adding a bit of an
"extra" margin of profit in the prices.  You should see the prices
of computer systems with "educational discounts" at the Columbia
University bookstore (actually, all of their pricing is a bit on the
obscene side so I don't know if they are treating computers any 
differently.).

Chris
------------------------------+---------------------------
Chris Mauritz                 |Where there's a BEER,
cmm1@cunixa.cc.columbia.edu   |there's a plan.
(c)All rights reserved.       |
Send flames to /dev/null      |Need I say more?
------------------------------+---------------------------

ts@cup.portal.com (Tim W Smith) (03/10/90)

< Without knowing exactly what ad, from what dealer, in what paper, etc. in
< which these prices showed up, it's impossible to say for sure. But, in theory
,
< it should be very difficult for dealers to undercut a campus price. Nobody
< outside Apple gets better prices than ed. institutions.

How about developers?  We get some pretty good discounts.  And some
amazing service, even.  We needed an SE/30 *RIGHT* *AWAY*.  We ordered
from Apple on Tuesday, and called them on Wednesday to ask how long it
would take.  They said three weeks.  We explained how much we needed
that machine.  It arrived Friday.

						Tim Smith

Adam.Frix@p2.f200.n226.z1.FIDONET.ORG (Adam Frix) (03/11/90)

In a message of 03/09/90, FROM: grobbins wrote -

> Have you ever drooled over the price breaks students get on Macintosh
> computers?  Ever wished you attended or worked at a consortium school,
> so that you would be eligible for Apple's best bargains?
> 
> Well, at least here at Univ. of Penn., that's just a dream.  Here are
> the current prices on Macintosh CPUs for students/faculty/staff at the
> official campus computer store, with some prices taken from an ad (for
> Computer Era) in the March 6 New York Times for comparison.
> 
> (stuff describing identical campus/retail store prices deleted)
> 
> So much for educational price breaks.

Wait, wasn't UPenn where all the hoo-ha started with retail stores
bitching about Apple's University Consortium?  Wasn't there supposed
to be some sort of lawsuit over the Consortium pricing policies, and
how they were taking the bread out of the mouths of poor CHILDREN (the
sacred word) of retail dealers?  If so, then the prices you quoted
don't surprise me.  But here at Ohio State, the deals remain, despite
a very big Apple dealer (a Huge Apple Dealer) not a mile away.

--Adam--



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