RS> I was mainly talking about the top of the line class modems like
RS> the USR VE and the retail price, not the sysop price. At typically
RS> $800ish IMO they are gouging for what isnt a particularly electronically
RS> complex device. The parts count isnt that different to a taiwanese
RS> V32bis modem, at a vastly higher price, the gouge factor.

BG> You've unfortunately chosen a rather poor
BG> example re the component count, Rod.

RS> Nope.

BG> ROFL! When does a modem (USR Courier) which is twice the size, and which
BG> has twice the physical number of components as either a Taiwanese V.32bis
BG> or V.34 modem (if not marginally more) NOT have more physical componentry ?

The price of those and the size of the PCB etc
is a TRIVIAL part of the $800ish retail price Bill.

The gouge factor is what accounts for the price difference, not the
price of the components. You havent even established that the PRICE of
the components to the modem manufacturer IS higher with the USR either.

BG> In fact, the Courier ain't twice the size of your average
BG> Taiwanese V.34 modem for nothing, and it does indeed have
BG> more than twice the componentry, although I'll be the first
BG> to agree that it shouldn't translate to twice the price.

RS> Yep,

BG> Fucking hell, that's quite the opposite of what you suggested above!

Nope.

RS> and since they are OTW gp ics, not sp ones, my point about there
RS> being very visible gouging in the Courier retail price remains.

BG> Someone had to pay for USR's ongoing R&D, I guess...

Yes, and their continuing profits. You may have noticed quite a few other
US manufacturers in very deep financial shit indeed. USR has managed to
gouge the end user rather effectively and avoid that. Its got SFA to do
with the size of the PCB and the cost of the components on it to USR.

Tho you can certainly argue that the cost of writing the code etc for the
gp DSPs, amortised over a relatively small number of modems sold, is part
of the reason that USR has to charge a higher price or else they go broke.

RS> But at say $800 for a USR VE, its pretty obscene
RS> compared with say a 486 motherboard and cpu.

BG> True, but street price of the Courier is closer to $695 now.

RS> The Modem Superstore is still advertising it at $800, tho I agree
RS> that some are lower, Rod Irving at $729 surprisingly enough.

BG> I happen to know EXACTLY what the dealers are paying for
BG> their Austel models, and you can take it as read that at Mike
BG> Richardson's $595 sysop price, there's less than $20 margin.

Well, that sysop price isnt terribly relevant, we were
discussing the retail price. And the retailers margin
still says nothing useful about USRs gouging either.

BG> By the same token, that also means that the robbers who are
BG> charging $800 for the same bloody modem are also making a healthy
BG> little profit of $225.  Not bad work if you can get it.  :(

Sure, but we were discussing USRs gouging, what counts
in that context is the retailers buy price of the say
Taiwanese modems, not the margin on the retail sale.

BG> BTW, the sales tax on the Couriers is rather obscene too (21% overall),

21% of their buy price, not the retail price. Yes, thats how sales
tax works, the price has a large gouge factor, the tax increases too.

BG> and you can't really blame the retailers
BG> for that particular price component.

I didnt, I blamed USR for the gouging. Clearly the retailer
has no choice when USR has jacked up their buy price but to
pass that on. They can hardly be expected to sell it at a loss.

BG> Still obscenely overpriced,

RS> Yeah, no argument there, tho I do agree that the V34s in general,
RS> particularly the Austel approved ones, have seen rather less obscene
RS> prices than the V32bis modems did at the same time since first release etc.

BG> More sales, more dealers, greater volumes, more competition = lower prices.

Nope, its got fuck all to do with that. You have seen even
more spectacular drops in the prices of say 486 motherboards.

BG> although compare that to the US price, and our version is actually
BG> cheaper!  In the US, the Courier sells for just under US$500, so we
BG> do quite well once the exchange rate is taken into consideration.

RS> Interesting the way that swings around at times.

BG> Yeah, and believe me when I tell you that Russell Brooks is majorly
BG> pissed off that his own US/Canada internal Courier cost him A$940 all
BG> up (no way he could avoid paying sales tax).  And that was when the
BG> Austel external was retailing locally for $899...

Yeah, you certainly need some care on importing, the
importing advantage can swing around to a surprising degree.

BG> Why do you think I didn't bother importing one?  :)

RS> Yeah, tho I agree about that point you made about
RS> the rate of getting the Austel flash version too.

BG> Probably only really important for major
BG> bugfixes and feature upgrades though.

Yes, but if you had a particularly irritating problem with the current
code, and you knew the US version had already fixed it, it would be
fucking irritating to have to wait ages for the fix in the Aust version.
Particularly with a proper modern flashrom implementation which would
otherwise allow a fix in an hour or so. Totally fucked IMO

--- PQWK202