jamesp@dadla.UUCP (Jim Perkins) (08/25/85)
[Go ahead, EAT me, MAKE MY DAY] I visited a local computer store earlier today, and lo and behold, there was an Atari 520ST showing beautiful color images on the monitor. The price of a system with drive and monochrome monitor is $799, and $999 for a color monitor system. I talked with the salesman there concerning the infamous "K-Mart" antics of Commodore and Atari (In short, after selling computers to dealers for ~$250 apiece, they signed contracts with K-Mart and sold them to K-Mart distributors at only ~$130, leaving the dealers with expensive, unsellable machines). I asked him, how come so many dealers are ready to carry the Amiga and the ST? He told me that for the 520ST, Atari had to sign an agreement not to undercut the dealers as they had previously, and the dealers were all required to sell the computers for NO LESS than $799 monochrome and $999 color. He told me that the $799/$999 minimum is enforced everywhere in the world, so if anyone out there in net.land is hoping to see a lower price somewhere, it won't happen. The Atari is absolutely lovely, and at a lovely price. My choice between Atari and Amiga will probably be the Atari, because I'm a poor student, unable to invest in an even fancier Amiga (*sigh*), but I think that the Atari will sell better for this reason -- it has enough bells and whistles to keep almost anyone happy! There are rumors floating around about CD-ROMS for the Amiga and ST. Does anyone else know about these things? Do you think we will see "UN*X on a disk" for the ST or Amiga? So interesting... I am wondering if TOS, the Atari Operating System, will become popular enough to have good applications roll along for it. At any rate, the games should be spectacular! -- char name[] = "James T. Perkins"; char uucp[] = "dadla!jamesp"; /* * Software Bug * * \ __ / * O O * <\/> */ What makes the universe so hard to comprehend is that there's nothing to compare it with.
hes@ecsvax.UUCP (Henry Schaffer) (08/26/85)
> He told me that for the 520ST, Atari had to > sign an agreement not to undercut the dealers as they had previously, and the > dealers were all required to sell the computers for NO LESS than $799 > monochrome and $999 color. He told me that the $799/$999 minimum is enforced > everywhere in the world, so if anyone out there in net.land is hoping to see a > lower price somewhere, it won't happen. > > char name[] = "James T. Perkins"; > char uucp[] = "dadla!jamesp"; This type of minimum price hasn't always been easy to enforce. The old "Fair Trade" (translation - price fixing) is no longer legal, and there have been many ways for ingenious dealers to increase volume by selling at discount prices. I wonder if Atari will be able to make the min. price stick? --henry schaffer
kek@mgweed.UUCP (Kit Kimes) (08/27/85)
CompuClub (Atari mail order service) is selling the 520ST Monochrome for $750 (In stock) and the 520ST Color for $900. They were not in stock as of the last newsletter. Unlimited Software, Inc also said that they would have club prices, although they were not set as of their last mailing. Discounts are available. Kit Kimes AT&T Information Systems Montgomery Works Montgomery, Il. 60538-0305 ..!ihnp4!mgweed!kek
notes@harpo.UUCP (08/28/85)
Nope, the $799 won't stick as I have oogled the Atari for a while now at a store where it is selling fo $699 with monitor, software & mouse.
jho@ihu1m.UUCP (Yosi Hoshen) (08/30/85)
> He told me that for the 520ST, Atari had to > sign an agreement not to undercut the dealers as they had previously, and the > dealers were all required to sell the computers for NO LESS than $799 > monochrome and $999 color. He told me that the $799/$999 minimum is enforced > everywhere in the world, so if anyone out there in net.land is hoping to see a > lower price somewhere, it won't happen. Is this legal? This sounds like price fixing! -- Yosi Hoshen, AT&T Bell Laboratories Naperville, Illinois, Mail: ihnp4!ihu1m!jho
jshaver@APG-3.ARPA (John Shaver STEEP-TMAC 879-7602) (09/05/85)
It sounds more like the fair trade price which was so popular amongst the retailers 20 years ago.
rb@ccivax.UUCP (rex ballard) (09/10/85)
> > He told me that for the 520ST, Atari had to > > sign an agreement not to undercut the dealers as they had previously > > Is this legal? This sounds like price fixing! > -- > Yosi Hoshen, AT&T Bell Laboratories > Naperville, Illinois, Mail: ihnp4!ihu1m!jho In the past, the individual dealers were given a wholesale price based on rather small quantities (<1000/year). When K-Mart or some large volume retailer places an order, usually want to know the quantity >100,000 price. Most computer companies offer a spread of as much as 50% of the "quantity 1" price. (Apple can actually offer a large quantity price of <$1000 on the mac). Because of Atari's "Cost Plus" policy, the spread is less than a few points. K-Mart actually "Snubbed Atari" when atari only offered a small spread. The only heavy "quantity discount" would be the reduced shipping costs. Another factor is the service. Many "K-Mart Buyers" were going directly to Commodore/Atari rather than local user's groups/dealers for support. Current margins are actually lower than with other computers (30 vs 50%) so you may find a lot of "Bait and Switch" or "Loss Leader" advertising going on. This is typical of any "Consumer Electronics" market. I've already heard of a dealer offering a "Lower Price" only to arrive and be told that one should buy a MAC or IBM, or get a "rain check". Some dealers will be using "Creative Packaging" such as ATARI ST $749 (with purchase of additional software packages). If Atari should decide to start "retailing" the developer's kit. They may throw it in with the hardware but let the dealer "sell it" (read:-include it) for the difference in price. Another dealer charging full price for the hardware will "throw it in". These tactics are familiar to anyone who has bought a componant stereo system. ATARI may become the PIONEER (audio maker) of the Computer business, get a great deal on it if you don't let the salesman "intimidate you" into something with a larger margin.