Andy's comments and positioning...
chipp at chipp.com
Thu Feb 5 15:06:50 CST 2004
> Granted, behind the scenes at RunRev, the cost of experts to produce this
> wonderful software may be cost prohibitive at $99.99 for a time, but sales
> would eventually overshadow the cost of RunRev's development and
> budget, wouldn't it?
Nope. I don't believe so. I'm not aware of any single product company which
has sold a professional authoring tool for $99 and survived. I don't believe
sales would 'catch up' as the cost to market to new users would be
prohibitive in the first place.
Sun could afford to do it, because it was for other strategic purposes (just
as IBM now pushes Linux). In both cases, the short term financial needs for
the company were being met through other sources. In the case of RR, it's a
bet the farm strategy to offer it at $99. And I doubt they would make it.
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