[comp.sys.hp] 340 Pricing policy

lavar@grlab.UUCP (LaVar Edwards) (09/01/89)

Can anyone explain the following pricing policies to me?

We recently purchased a HP9000/340M workstation with the following:

   68030 16.67Mhz       68882 16.67Mhz
   HP-IB interface      RS-232 port
   802.3/Ethernet LAN   17inch HighRes mono-monitor
   Mouse                Keyboard
   HP-UX with AXE, PE, NS-ARPA, NFS, X11
   4 Mbytes parity-checked RAM   <-- *** Notice ***

   The total price was $5,640 (list)

Now for the problem:

 An additional 4 Mbytes parity-checked RAM is $5,000 ($4,250 if you purchase
 the additional memory with the system)

A naive conclusion:

 Does this mean that you should be able to purchase a 340 without memory
 for $640?

--
LaVar Edwards
USPS:  Graphicus                UUCP:    ...!hpubvwa!grlab!lavar
       150 Lake St., Suite 206  VoicePh: USA (206) 828-4691
       Kirkland, WA 98033       FAX:     USA (206) 828-4236

raveling@isi.edu (Paul Raveling) (09/06/89)

In article <240047@grlab.UUCP>, lavar@grlab.UUCP (LaVar Edwards) writes:

> Can anyone explain the following pricing policies to me?
> ...
> We recently purchased a HP9000/340M workstation with the following:
> ...
>    The total price was $5,640 (list)
> ...
>  An additional 4 Mbytes parity-checked RAM is $5,000 ($4,250 if you purchase
>  the additional memory with the system)
> ...
>  Does this mean that you should be able to purchase a 340 without memory
>  for $640?

	It sounds as if competition is leading workstation vendors to
	use a marketing approach that came into favor about a decade
	ago with low end (home) personal computers and video games:
	Sell the original system at a loss to capture customers,
	then make enough extra profit on accessories to survive.

	Just as every competitor in the games & home computer market
	had to do this to survive, and even then many didn't, it appears
	that competition in the workstation market is becoming much
	the same.  Companies have a huge incentive to offer an easy
	path into their fold of customers, and I'll bet virtually all
	are selling at least some low end workstations at a loss.


----------------
Paul Raveling
Raveling@isi.edu