L
Lynn at Alist
Maybe the printer, electric toothbrush, and video-gaming markets are "different", but this flys in the face of what works there.
In all of these other markets, the best strategy has proven to give the core product way at near cost (or a loss) and then reap the profits on the "complements". To follow this model, the PLC vendors should make the PLC very cheap (ie: a MicroLogix 1000 for $99) and then expect to profit from the cables and programming software.
When Nintendo dropped the price of the GameCube from $149 to $99 they had a near 40% increase in volume immediately. Games still sell for $29-49 each. Sony & XBox grumble Nintendo must be lossing money on every console sold, but guess what ... ;^)
- LynnL
In all of these other markets, the best strategy has proven to give the core product way at near cost (or a loss) and then reap the profits on the "complements". To follow this model, the PLC vendors should make the PLC very cheap (ie: a MicroLogix 1000 for $99) and then expect to profit from the cables and programming software.
When Nintendo dropped the price of the GameCube from $149 to $99 they had a near 40% increase in volume immediately. Games still sell for $29-49 each. Sony & XBox grumble Nintendo must be lossing money on every console sold, but guess what ... ;^)
- LynnL