Mailinglist Archive: opensuse (2269 mails)

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[SLE] Re: New Distro Suggestions
  • From: alan@xxxxxxxxxxx (Alan Lenton)
  • Date: Thu, 19 Oct 2000 06:36:52 +0100
  • Message-id: <005301c0398e$a99c35a0$070210ac@xxxxxxxxxxxxxxxxxxx>

I think you are all missing out something very important. (Apart from the
fact that SuSE needs to make enuff money to pay it's staff!)

If the price is too cheap, then the retailers will simply not stock it. They
expect ot make a certain amount of money on each unit of shelf they stock.
If the price is too cheap, then the retailers can't make their margin so
they go and look for a more expensive product to fill up their shelf space.

But that isn't all. Production companies deal with distributors not
retailers, I don't know what SuSE's deal with its distributors is, but based
on my experience in the computer boxed games industry a few years back, I
would guess the distributors are getting it at about 50% and selling it on
to retailers at 67% of retail price.

This has two implications. First SuSE are only getting half the money we pay
over for the distribution, and second if there isn't enuff profit between
the 50% the distributors pay for it and the 67% they sell it on for, or they
won't take it.

I don't work for SuSE, so I've no idea what the actual figures are but I
suspect that the ones I've given are in the correct ball park. Pricing a
product is a lot more complex than it appears on the surface...

Alan Lenton

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