Rod, at 06:59 on Nov 30 1995, you wrote to Bill Grimsley...

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

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

RS> Nope.

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

When Rod says so, that's when.  :)

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,

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

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.

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

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.

I happen to know EXACTLY what the dealers are paying for their Austel
models, and you can take it as read that at Mike Richardson's $595 sysop
price, there's less than $20 margin.  By the same token, that also means
that the robbers who are charging $800 for the same bloody modem are also
making a healthy little profit of $225.  Not bad work if you can get it. 
:(

BTW, the sales tax on the Couriers is rather obscene too (21% overall), and
you can't really blame the retailers for that particular price component.

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.

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

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
BG> we do quite well once the exchange rate is taken into consideration.

RS> Interesting the way that swings around at times.

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

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.

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

Regards, Bill

--- Msgedsq/2 3.20